The speaker characterizes ARC-AGI 1 and 2 as static lists of a few JSON grids and ARC-AGI 3 as a more reality-like but still scoped environment.

“and of course we wouldn't but like a perfect simulator of reality and then that's when you go and that's what you go and simulate on that's your environment that you can just manufacture different tests for that in lieu of that we have approximations that happen every now and then so the way i think about it is if you had like a linear spectrum rkg i1 and 2 it's a static list of like three or four json grids static doesn't move rkg i3 i guess on the other side would be reality like pure representation of reality rkg i3 is a step more towards reality but it's still going to be”

“We're going to be a scoped environment.”