We will observe ourselves creating AGI, and see the AGI creating a simulation to understand its own nature and its past, and that simulation will contain us, observing ourselves creating AGI; there is no way of knowing how deep into the loop we are
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You're saying my thoughts are "simulations"? I don't understand how that fits into your definition of simulation -- my thoughts can't produce the results of a physical system without implementing the behavior (except in my imagination...)
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