RSI is a fetishistic term among the singularity crowd, who imagine AI "recursively" improving itself in some exponential fashion until there is a bright flash of white light and it reveals itself in the form of god. Or something like that.

I don't know why whoever coined the term chose "recursive" rather than "iterative" - just sounds more likely to lead to infinite regress I suppose.

This notion of recursive/iterative self-improvement, whereby generation #1 AI improves itself to create generation #2, then generation #2 further improves itself to create generation #3, etc, seems to conflict with the reality that what we have with LLMs is models whose performance/capability is defined by data, not code, so the most you can do is have your LLM design synthetic data, or just do Karpathy-style "auto research" where all you are doing is using the LLM to automate your experiments.

At the end of the day, each experiment, designed by a person and/or LLM, then needs to compete with all your other ideas for compute to be tested at scale, and no amount of recursion or self-improvement will materialize an infinite amount of compute out of thin air, so your recursively synthetic-data gobbling LLM will continue to improve at the same pace it ever did.

What will prevent LLMs from designing robot control circuitry and participating in increase of chip production/design and physical experimentation?

How do you think why there's this fad of producing general purpose humanoid robots?

Yes the exponential self improvement folks have never heard of an eigenvalue I guess. You can loop forever using output as input but at some point the result will stop changing (depending on the function)