Poetiq is a new startup founded by former DeepMind researchers that recently achieved a major jump on the ARC-AGI and Humanity's Last Exam benchmark by layering a recursive self-improvement system on top of existing models. In this episode of Lightcone, Poetiq's Founder & CEO Ian Fischer joined us to discuss how small teams can build “reasoning harnesses” that outperform base models, what that means for startups and why automating prompt engineering may be one of the most powerful levers in AI today.Chapters:00:00 – Intro00:40 – What Is Poetiq?01:07 – Recursive Self-Improvement Explained02:07 – The Fine-Tuning Trap02:59 – “Stilts” for LLMs03:14 – Recursive Self-Improvement vs. Fine-Tuning05:05 – Taking the Top Spot on ARC-AGI06:37 – Beating Claude on Humanity’s Last Exam08:40 – How the Meta-System Works10:26 – Beyond RL: A New S-Curve11:32 – Automating Prompt Engineering13:37 – From 5% to 95% Performance14:50 – Early Access & Putting Your Agent on Stilts16:17 – From YC Founder to DeepMind Researcher18:29 – Advice for Engineers in the AI EraApply to Y Combinator: ycombinator.com/applyWork↗ at a startup: ycombinator.com/jobs↗