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Lecture 3 discusses how modern frontier AI systems are built. We discuss scaling laws, memory systems (including context/RAG), large reasoning models, and agentic AI. We discuss the capabilities of modern systems as measured by benchmark tests, and unpack what may still be missing for artificial general intelligence - including consolidation, metacognition, and embodiment.

What you need to understand:

  1. Sutton’s “bitter lesson” for AI development
  2. Retrieval augmented generation
  3. Chain of thought reasoning
  4. Tool use and scaffolds for AI agents
  5. The Jagged Frontier

Sample essay questions

Do modern frontier AI systems have ‘general intelligence’? If not, what is missing?

In his essay “The Bitter Lesson” the AI pioneer Rich Sutton argues that general-purpose computation and big data are the key ingredients of intelligence. Do you agree?

Reading List

Sutton 2019

Kaplan 2020

Liu 2023

Phuong Hutter 2022

Lewis 2020

Kojima 2022

Wei 2022

Guo 2025

Botos 2026

CAIS 2026

Nakano 2021

Kwa 2025

Arc Prize Foundation 2026

Brashers-Krug 1996

Guo 2017

Sun 2025

Mineault 2026

Saxena 2025