Compression is not information loss, but a test of prediction—and a path to AGI

yunta_tsai · x · 2026-07-23

People often treat compression as information loss, but this post argues the opposite: good compression separates signal from noise while preserving the structure of the domain.

It uses video compression as an analogy, saying the model spends compute on predicting motion and only budgets the remaining bits to encode it. The closing claim is that if a system’s predictions consistently beat the observed universe, that is AGI.

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