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Daniel_Burfoot comments on [link] Baidu cheats in an AI contest in order to gain a 0.24% advantage - Less Wrong Discussion
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Yes, good compression can be achieved without deep understanding. But a compressor with deep understanding will ultimately achieve better compression. For example, you can get good text compression results with a simple bigram or trigram model, but eventually a sophisticated grammar-based model will outperform the Ngram approach.