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Living notebook · Codex no. 1

AI of tomorrow

What if we organised knowledge before learning it?

This notebook is our whiteboard. We write down leads, hypotheses and provisional conclusions on one question: how to build AI differently, so that it costs less, uses less energy and makes fewer mistakes. First project: a hierarchy of data, for learning and for looking things up.

Version 2 · updated

I

Where we start

Today a model is trained on a "flat soup": trillions of words, all at the same level. A passing post and a physics textbook weigh the same. Our starting intuition: part of AI's enormous appetite for data goes into rebuilding a hierarchy that nobody hands it.

Fig. 1 — The pyramid of knowledge

  1. Principles
  2. Rules
  3. Facts
  4. Observations
Thousands of observations (bottom) condense into a few facts, then rules, then one principle. Today a model receives everything flat and has to rebuild this pyramid on its own.

Established

A model's memory is limited

Controlled experiments show that a well-trained language model stores about 2 bits of knowledge per parameter, no more. Every parameter is precious: filling it with details has a cost.

Source: Allen-Zhu & Li, Physics of Language Models 3.3 (2024)

Established

Noise is expensive, labels help

In the same study, when 7 out of 8 training texts are noise, the capacity to retain useful knowledge falls by up to 20 times. Simply adding the source website's name in front of each text clearly helps the model sort. A provenance label is already a small hierarchy.

Source: Allen-Zhu & Li, Physics of Language Models 3.3 (2024)

II

A hierarchy for learning

First way to use a hierarchy: sort and order the training data so the model learns faster, with less. Like a student following a good textbook rather than a pile of loose notes.

Promising

Thinking in ideas, not words

Meta's Large Concept Models reason sentence by sentence, in a meaning space shared by 200 languages: an explicit hierarchy from words to ideas. For now they remain less fluent than classic models.

Source: Meta, Large Concept Models (2024)

Go deeper

III

A hierarchy for looking up

Second way: keep knowledge outside the model, arranged in levels like a library (section, shelf, book, page). The model only goes as deep as it needs to answer.

Fig. 2 — Searching by going down

16 documents · 4 steps

To find one page among 16, you go down 4 levels instead of reading everything. Double the library and you need just one more level. That is what a logarithmic cost means.

Established

Looking up rather than memorising

RETRO (DeepMind) draws on a 2-trillion-token database while it writes. It matches GPT-3 with 25 times fewer parameters.

Source: Borgeaud et al., RETRO (DeepMind, 2021)

Established

A tree of summaries

RAPTOR groups the passages of a text, summarises them, then summarises the summaries, until it forms a tree. Paired with GPT-4, it gains 20 points of accuracy on a hard question benchmark (QuALITY).

Source: Sarthi et al., RAPTOR (ICLR 2024)

Established

Communities of ideas

GraphRAG (Microsoft) links a corpus's entities into a graph, splits it into nested communities and summarises each level. For questions about the whole corpus it beats classic retrieval in 70 to 80% of comparisons. The trade-off: indexing is expensive up front.

Source: Edge et al., GraphRAG (Microsoft, 2024)

Promising

A memory inside the model

Meta's "memory layers" add millions of key-value pairs looked up on demand: more knowledge without more compute. On factual questions, accuracy more than doubles.

Source: Berges et al., Memory Layers at Scale (Meta, 2024)

IV

Our hypotheses

What follows is our own reasoning, not a published result. The confidence figure says how much we believe it today; it will move.

H1

The appetite for data comes partly from a missing hierarchy

If we gave the model the structure of the data (level, provenance, dependencies), it would need fewer examples to rebuild it.

Confidence55 %
For
Provenance labels increase capacity; an ordered warm-up speeds up learning.
Against
Gains from ordering stay modest and depend on size; very large models seem to rebuild the structure on their own.

Source: Allen-Zhu & Li, Physics of Language Models 3.3 (2024), Zhang et al., Beyond Random Sampling (EACL 2026)

H2

Learn the top, look up the bottom

Since parameters are scarce (about 2 bits each), let's reserve them for principles and ways of reasoning. Facts and details go into an external memory arranged in levels.

Confidence70 %
For
RETRO and memory layers show knowledge can be moved out without losing quality.
Against
The line between principle and detail is blurry; looking things up adds response time.

Source: Borgeaud et al., RETRO (DeepMind, 2021), Berges et al., Memory Layers at Scale (Meta, 2024)

H3

Rules + exceptions = compression

Just as a physicist remembers the law and the cases that contradict it, we would keep the rules and only the data that escapes them. The rest could be derived.

Confidence35 %
For
Choosing data well can change the very shape of the learning curve; this is the "minimum description length" idea from information theory.
Against
Language is full of exceptions, and extracting reliable rules already takes a very capable model.

Source: Sorscher et al., Beyond neural scaling laws (NeurIPS 2022)

H5

A graph, not a tree

Real knowledge is a network: the same idea belongs to several families. The useful hierarchy would be several trees that cross each other.

Confidence60 %
For
GraphRAG starts from a graph; RAPTOR lets one passage belong to several groups.
Against
The richer the structure, the more it costs to build and maintain.

Source: Edge et al., GraphRAG (Microsoft, 2024), Sarthi et al., RAPTOR (ICLR 2024)

V

Provisional conclusions

What we think at this stage. "Provisional" is the key word.

  1. For looking up, hierarchy has proven itself

    External databases, trees of summaries, community graphs: the gains are measured and reproduced. This is the most mature side of the question.

    Source: Borgeaud et al., RETRO (DeepMind, 2021), Sarthi et al., RAPTOR (ICLR 2024), Edge et al., GraphRAG (Microsoft, 2024)

  2. For learning, it is the frontier

    Ordering data helps a little; choosing it well helps much more. Training a model on an explicit hierarchy remains almost unexplored: that is where there is most to discover.

    Source: Zhang et al., Beyond Random Sampling (EACL 2026), Elgaar & Amiri, Curriculum Learning for LLM Pretraining (2026), Gunasekar et al., Textbooks Are All You Need (2023)

  3. The strongest lead: split, don't choose

    Principles in the weights, details in the memory. This is hypothesis H2, the one most evidence points to.

  4. History calls for caution

    Hand-written hierarchies, like the Cyc project started in 1984, never scaled. Richard Sutton's "bitter lesson": what learns on its own ends up winning. So the hierarchy should be learned, then made visible, not dictated.

    Source: Richard Sutton, The Bitter Lesson (2019), Cyc (Wikipedia)

Fig. 3 — The proposed split

Inside the model

  • Principles
  • Ways of reasoning
  • Grammar of the world

In the memory

  • Dated facts
  • Exceptions
  • Raw sources
Principles in the model's weights, details in a memory it consults. Knowledge flows both ways.
VI

Open questions

Next leads

Notebook log

  1. Three deep dives for part II: learning in order, throwing away wisely, thinking in ideas. New sources: OLMo 2, FineWeb, SemDeDup, Byte Latent Transformer, H-Net.
  2. Notebook opened. First exploration: hierarchy for learning and for looking up, 5 hypotheses, 4 provisional conclusions.

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