The trend of buying expensive, simulated Reinforcement Learning (RL) environments is misguided. The most effective and valuable training ground is the live application itself. Companies can achieve better results by using logs and traces from actual users, which provides the most accurate data for agent improvement.

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Algorithms like GRPO are powerful but require parallel rollouts in a reproducible environment. Building and maintaining these high-fidelity sandboxes, complete with realistic data and failure modes, is the hardest part of implementing RL today and a significant barrier for most companies.

AI models show impressive performance on evaluation benchmarks but underwhelm in real-world applications. This gap exists because researchers, focused on evals, create reinforcement learning (RL) environments that mirror test tasks. This leads to narrow intelligence that doesn't generalize, a form of human-driven reward hacking.

Pre-training on internet text data is hitting a wall. The next major advancements will come from reinforcement learning (RL), where models learn by interacting with simulated environments (like games or fake e-commerce sites). This post-training phase is in its infancy but will soon consume the majority of compute.

Training AI agents to execute multi-step business workflows demands a new data paradigm. Companies create reinforcement learning (RL) environments—mini world models of business processes—where agents learn by attempting tasks, a more advanced method than simple prompt-completion training (SFT/RLHF).

Beyond supervised fine-tuning (SFT) and human feedback (RLHF), reinforcement learning (RL) in simulated environments is the next evolution. These "playgrounds" teach models to handle messy, multi-step, real-world tasks where current models often fail catastrophically.

Companies like OpenAI and Anthropic are spending billions creating simulated enterprise apps (RL gyms) where human experts train AI models on complex tasks. This has created a new, rapidly growing "AI trainer" job category, but its ultimate purpose is to automate those same expert roles.

Developers often test AI systems with well-formed, correctly spelled questions. However, real users submit vague, typo-ridden, and ambiguous prompts. Directly analyzing these raw logs is the most crucial first step to understanding how your product fails in the real world and where to focus quality improvements.

Instead of relying on expensive, omni-purpose frontier models, companies can achieve better performance and lower costs. By creating a Reinforcement Learning (RL) environment specific to their application (e.g., a code editor), they can train smaller, specialized open-source models to excel at a fraction of the cost.

As reinforcement learning (RL) techniques mature, the core challenge shifts from the algorithm to the problem definition. The competitive moat for AI companies will be their ability to create high-fidelity environments and benchmarks that accurately represent complex, real-world tasks, effectively teaching the AI what matters.

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.