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So, the best of compression is a procedural system, capable to generate from minimal input a whole world- basically just using abstract rules and metrics for reasonableness? So- AGI is in the principles behind universe generators like NoMansSky? Is there a ultimate game- that generates this from physics up?

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Yes + the capability to use this 'world' to simulate outcomes. Thats exactly what LeCun and others are trying to do with world models.

NoMansSky generator misses the complexity of encoding more than just geometry and basic quests but thats one reason why google and others show you machine learning based 'game engines' which allow you to enter these worlds. They are not doing this to replace real game engines, the do this for world research.

The ultimate game is us. Our physics constants :D

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