timtyler comments on Algorithmic Progress in Six Domains - Less Wrong
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Well, creatures able to compress their sense data to 0.22 of its original size might drive to extinction creatures who can only manage a compression ratio of 0.23 - in an evolutionary contest. 'Small' differences in modeling ability - as measured by compression ratios - could thus have large effects on the world.
However compression (and AI) are hard problems and run rapidly into diminishing returns - at least if you measure them in this way.
Sounds pretty speculative.