> By running this self reflectively, one can create a sentient artificial intelligence.

Or, you can create a recursive chain of self-modification that adds endless erroring cruft code. AI is great at creating long-winded boilerplate of dubious quality, which is exactly what you wouldn't want from a self-modifying program. It is practically guaranteed that such a program would destroy itself before making anything truly novel.

> The AI compiler can be self-compiled to create an AI OS. Which can then run its contained AI compiler to recompile to create a cloud AI OS.

Aww I love this. AI begat AI Compiler, son of AI. AI Compiler begat AI OS, whom begat a Cloud AI OS again. No idea what any of it means though.