He says look at computer games. First we had pong, 2 paddles and a dot that simulated a tennis game. Today what 30-40 years later we have multiplayer games that simulate whole worlds pretty accurately and with hundreds of other players sharing the game, think WoW or GTA 5. And the sophistication of these simulations are growing all the time. What kind of simulations will we have in 40 years time? He says simulations by then will indistinguishable from reality.
So that's why he believes we are living in a simulation. In fact he said there is only a one out of a billion chance that we are living in "base reality". "Base reality" meaning the real world or simulation level 0.
Do you buy into Elon's theory?