Recursion Is The Next Scaling Law In AI

Y Combinator · · 38 min

Y Combinator's François Chéard explains how recursive inference in small AI models can outperform much larger LLMs on reasoning tasks, based on two key 2025 papers.

Watch the episode 38 min · YouTube

The gist

  1. Standard LLMs process everything in one forward pass, which makes true iterative reasoning impossible without workarounds that need human-labeled data.
  2. A 7 million parameter recursive model hit 87% accuracy on ARC Prize tasks, beating models with over 100 billion parameters.

Y, Riley, Greg and Alex agree on 20 things

See what they all use, in their own words. Paid ads are left out.

See what they all swear by Or pick your own people

What do Y and experts like them all swear by?

20 things in common

See