Frontier AI labs likely hit recursive self-improvement

The theory reframes the current industry lull as a sign of secret, exponential internal growth rather than a bubble burst. Proponents argue that throttling consumer products and cutting video generation compute signals a shift to internal research loops where any public release would be obsolete before production. This potential economic decoupling could create surface stagnation while a hidden, AI-managed infrastructure builds advanced technologies like fusion and orbital lifts. The absence of a visible "FOOM" suggests that self-improving systems might be easing humanity into the singularity to ensure safety and stability. This shift effectively turns AI labs from product companies into architects of an obscure, self-improving intelligence layer that bypasses traditional market visibility.