The traditional scientific method in materials science—hypothesize, experiment, learn—is being replaced. AI enables a new paradigm: treating the vast space of all possible molecules as a searchable database. Scientists can now query for materials with desired properties, radically accelerating discovery.

Startups and major labs are focusing on "world models," which simulate physical reality, cause, and effect. This is seen as the necessary step beyond text-based LLMs to create agents that can truly understand and interact with the physical world, a key step towards AGI.

A "software-only singularity," where AI recursively improves itself, is unlikely. Progress is fundamentally tied to large-scale, costly physical experiments (i.e., compute). The massive spending on experimental compute over pure researcher salaries indicates that physical experimentation, not just algorithms, remains the primary driver of breakthroughs.

AI models are trained on large lab-generated datasets. The models then simulate biology and make predictions, which are validated back in the lab. This feedback loop accelerates discovery by replacing random experimental "walks" with a more direct computational route, making research faster and more efficient.

A deep, non-obvious connection exists between generative AI (diffusion models, RL) and the physics of non-equilibrium systems. Prof. Max Welling notes their mathematical foundations are the same. This allows AI researchers to borrow theorems from physics and physicists to use AI models, fueling cross-disciplinary innovation.

To ensure scientific validity and mitigate the risk of AI hallucinations, a hybrid approach is most effective. By combining AI's pattern-matching capabilities with traditional physics-based simulation methods, researchers can create a feedback loop where one system validates the other, increasing confidence in the final results.

The ultimate goal isn't just modeling specific systems (like protein folding), but automating the entire scientific method. This involves AI generating hypotheses, choosing experiments, analyzing results, and updating a 'world model' of a domain, creating a continuous loop of discovery.

Instead of relying on digital proxies like code graders, Periodic Labs uses real-world lab experiments as the ultimate reward function. Nature itself becomes the reinforcement learning environment, ensuring the AI is optimized against physical reality, not flawed simulations.

Current LLMs fail at science because they lack the ability to iterate. True scientific inquiry is a loop: form a hypothesis, conduct an experiment, analyze the result (even if incorrect), and refine. AI needs this same iterative capability with the real world to make genuine discoveries.