Even if it can produce novel insights into AI algorithms, it is not necessary that this won't also cap out eventually. It might be that the feedback loop just stops after a while because making sufficient additional progress would require making a leap that can not be made with technology up to that point. It wouldn't be the first time improving a technology lead to said technology developing even faster thanks to a feedback loop, until it didn't any more.
Though for however long it lasts, the feedback loop is fundamentally different than normal technological inspiration, since the ability to make new discoveries is improved by the previous discoveries in a way that it wasn't before (plus the way it was before).
Even if it can produce novel insights into AI algorithms, it is not necessary that this won't also cap out eventually. It might be that the feedback loop just stops after a while because making sufficient additional progress would require making a leap that can not be made with technology up to that point. It wouldn't be the first time improving a technology lead to said technology developing even faster thanks to a feedback loop, until it didn't any more.
Yeah, it's possible that it caps somewhere.
Though for however long it lasts, the feedback loop is fundamentally different than normal technological inspiration, since the ability to make new discoveries is improved by the previous discoveries in a way that it wasn't before (plus the way it was before).