An AI system that improves its own ability to improve itself, so each cycle produces a better improver and gains compound.
An AI system that improves its own ability to improve itself, so each gain makes the next gain easier or faster. The output of one improvement cycle is a more capable improver, which then runs the next cycle. The concern and the interest both come from the compounding: if the loop holds, capability grows faster than linearly.
How the loop works
A system reaches a level where it can modify its own design (its code, weights, training process, or the tools it builds).
Where the term is used