What has been lacking so far in frontier LLMs is the ability to reliably deal with the right level of abstraction for a given problem. Reasoning is useful but often comes out lacking if one cannot reason at the right level of abstraction. (Note that many humans can't either when they deal with unfamiliar domains, although that is not the case with these models.)
ARC has been challenging precisely because solving its problems often requires:
1) using multiple different *kinds* of core knowledge [1], such as symmetry, counting, color, AND
2) using the right level(s) of abstraction
Achieving human-level performance in the ARC benchmark, as well as top human performance in GPQA, Codeforces, AIME, and Frontier Math suggests the model can potentially solve any problem at the human level if it possesses essential knowledge about it. Yes, this includes out-of-distribution problems that most humans can solve.It might not yet be able to generate highly novel theories, frameworks, or artifacts to the degree that Einstein, Grothendieck, or van Gogh could. But not many humans can either.
[1] https://www.harvardlds.org/wp-content/uploads/2017/01/Spelke...
ADDED:
Thanks to the link to Chollet's posts by lswainemoore below. I've analyzed some easy problems that o3 failed at. They involve spatial intelligence, including connection and movement. This skill is very hard to learn from textual and still image data.
I believe this sort of core knowledge is learnable through movement and interaction data in a simulated world and it will not present a very difficult barrier to cross. (OpenAI purchased a company behind a Minecraft clone a while ago. I've wondered if this is the purpose.)