Escaping ouroboros: build systems that maximize interaction
The early adopters of the AI wave had a gift they didn't fully appreciate: clean ground truth. The pre-2018 web was messy but human. The early quants traded against human intuition. But that world is fading.
We have entered the era of the data ouroboros: models trained on the outputs of models. If you keep training on the raw fire hose, you aren't learning reality. You're photocopying a photocopy.
The way out is not more data. It's better interaction.
This piece explains why the convergence of quant shops and AI labs matters, and how to build systems that maximize interaction to escape the loop.