[webmaven]

> When has an AI shown capability of "iterating" in this way?

Many times, actually. It's just that until quite recently, this approach (of applying ML to the problem of devising improved ML systems) has been prohibitively expensive in terms of time and resources compared to the human-powered ML research approach. The lowest-level version of this is hyperparameter optimization, but higher-order versions are known to have been deployed already.