Well yeah, the feedback loop is assumed to happen once the AI system becomes powerful enough to understand and optimize its own operation better than humans can. Basically the premise is that AI development speed is bounded by the capability of the mind working on the AI, so max(human, AI). AI intelligence grows faster than human intelligence (which has reached the limits of easy improvements and is thus arguably capped by population size, which has also stagnated), so the inflection point is assumed to happen once the second term outstrips the first.
It can replace all those pythons, javas with super efficient platform tailor-optimised machine code, gaining remarkable computational benefits. I mean programmers will also loose jobs one day, AI will replace them too only couple of years later than taxi drivers. But actually I'm looking forward to it, as programmers are extremely cocky these days.
