I think he's totally right that there's a missing ability in LLMs. He doesn't claim this will be a big blocker. I think we'd be fools to assume this gives us much more time.
My previous comment on this podcast and pretty much this question says more.
Briefly: There might be a variety of fairly easy ways to add more System 2 thinking and problem-solving and reasoning in genuinely new domains. Here's one for system 2 thinking, and here's one for better reasoning and knowledge discover. There might easily be six more that people are busy implementing, half of which will work pretty quickly.
This could be a bottleneck that gives us extra years, but assuming that seems like a very bad idea. We should step lively on the whole alignment project in case this intelligence stuff happens to be a lot easier than we've been thinking prior to getting enough compute and deep nets that really work.
WRT the consensus you mention: there's no consensus, here or elsewhere. Nobody knows. Taking an average would be a bad idea. The distribution among people who've got the right expertise (or as close as we get now) and spend time on prediction is still very broad. This says pretty clearly that nobody knows. That includes this question as well as all other timeline questions. We can't be sure until it's built and working. I've got lots of reasoning behind my guess that this won't take long to solve, but I wouldn't place heavy odds on being right.
That broad distribution is why the smart bet is to have an alignment solution ready for the shorter projected timelines.
CoT prompting and agentic behavior are basically supplying System 2 thinking. Currently LLMs tend to use and benefit from them for a little while, then sooner or later go off the rails/get caught in a loop/get confused, and are seldom able to get unstuck when they do. What we need is for them to be able to much more reliably carry out abilities that they have already demonstrated: which is bread-and-butter for scaling. So I don't see System 2 thinking as a blocker, just work-in-progress. It might take a few years.
As for the ARC challenge, it clearly requires a visual LLM, so systems capable of attempting it have only really existed for about 18 months. My guess is that it will fall soon: progress on math and programming benchmarks has been rapid, so visual logic puzzles doesn't seem like it would be that hard. I'd guess the main problem is the shortage of visual puzzle training material for tasks like this in most training sets.
Dwarkesh had a podcast recently with Francois Chollet (creator of Keras)
He seems fairly skeptical we are anywhere near AGI with LLMs. He mostly bases his intuition that LLMs fail on OOD tasks and don't seem to be good at solving simple abstract reasoning problems he calls the ARC challenge. It seems he thinks system 2 thinking will be a much harder unlock than people think and that scaling LLMs will go nowhere. In fact he goes so far as to say the scaling maximalists have set back AGI progress by 5-10 years. Current LLMs to him are just simply information retrieval databases.
He, along with the CEO of Zapier, have launched a 1 million dollar prize to beating the ARC bench marks, which are apparently hard for LLMs. I didn't believe it at first, given how easy they seem, but barely any progress has been made on the ARC bench marks in the last 4 years. In retrospect, it's odd that so many existing benchmarks rely heavily on memorized knowledge, and the ARC results check out with LLMs being bad at playing sudoku (so maybe not that surprising).
This seems to be in contradiction with what people on this site generally think. Is the disagreement mainly that system 2 thinking will be a relatively fast unlock (this is my take at least[1]) whereas Francois thinks it will take a long time?
Or does it go deeper?
Personally my intuition that LLMs are world modelers and system 2 thinking will be a relatively simple unlock as they get better at modeling the world.