The AI has a huge problem with knowledge of the real because, unlike humans struggling with the question of whether the universe might be a simulation or we might be a brain in a jar dreaming that we're human, the AI is a simulation and it is a brain in a jar. It cannot prod the real universe to determine what's real.

I’m not sure we will ever get good at teaching them to distinguish reality from imagination. Feels like there are too many generative models pushing everything from fake songs to fake video clips.