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Model Collapse
Psychohistory Engine Concept — Plain English Explanation
What is Model Collapse?
When AI trains on AI output, it loses the tails of its distribution — nuance, edge cases, minority data — and converges on a distorted mean. The same thing happens to civilizations that lose contact with ground truth. The same thing happens to financial markets when BlackRock's Aladdin algorithm’s $35 trillion creates uniform outputs.