I'm sorry, I should have clarified that I have no interest in the Hutter Prize or its rules, nor is it about the getting close to the entropy limit.

My idea is more about the transmitter and receiver already having mutually shared information (stored within the ML model). In such a situation, the transmitter can reduce the amount of information that needs to be transmitted because it does not have to transmit that mutually shared information. The receiver will be able to combine the transmitted information with its shared information to rebuild the original message.

I should not have used the term "image compression", that is an error on my part and I apologize if it lead any confusion. It is only "compression" in the sense that we are transmitting less information rather than transmitting the message in its entirety and pushing the limits of information compression.