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timtyler comments on Intuitive Explanation of Solomonoff Induction - Less Wrong
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Uncomputable sequences have computable approxiomations. Solomonoff induction could do very well at predicting such sequences. However, it wouldn't assume that they are uncomputable. Why should it? That is a bizarre hypothesis - not an "obvious" one. It is surely more likely that the observed finite prefix was generated by some computable method.
Being a less likely hypothesis is not the same thing as having probability zero.
Solomonoff induction only deals with finite sequences. It doesn't assign p=0 to any sequence consistent with its observations so far. Uncomputable sequences are necessarily inifinite - and though Solomonoff induction can't handle them, neither can the observable universe. I think that the case that they matter remains to be made.