Solomonoff induction is a theoretical, mathematical framework for optimal inductive inference, providing a formal solution to the problem of predicting future observations in a sequence. It is a Bayesian method that assigns a prior probability to every computable hypothesis (or program) describing the data-generating process, with the prior weighted by the Kolmogorov complexity of the hypothesis—shorter, simpler programs receive higher probability. The agent then uses Bayesian updating to refine these beliefs as new data arrives, converging to the correct hypothesis with probability 1. This makes it a gold standard for sequence prediction under minimal assumptions, though it is provably incomputable.
