Marcus Hutter is free to sponsor a prize according to his definition of intelligence. You are free to sponsor a prize according to your intelligence definition involving a lossy compression.

Of course he's "free to".

Are you trying to imply that people need to put up big sums of money when they want to critique someone else's definitions be taken seriously? If yes, I think that's ridiculous. If no, I can't figure out the point of your comment.