This paper proposes a theoretical and empirical framework for understanding intelligence as a process of atomic compression and compositional reuse. It argues that scalable cognitive, biological, computational, and organisational systems reduce complexity by organising information into reusable units that can be recombined into higher-order structures. The central contribution is the Compression Calculus, a formal framework for comparing surface evidence with atomic representations and for describing how abstraction can compound across layers. The framework is evaluated on large, multi-source software corpora under an open-world concept model, showing substantial evidence-to-concept consolidation in two large projects, while a smaller third project remains below the target threshold. The analysis further identifies important boundary conditions: consolidation depends on corpus scale, evidence-unit definition, and concept identity, and the observed reduction is driven primarily by within-corpus recurrence rather than cross-source recurrence. The paper also develops a representational account of the meaning gap in contemporary generative systems, describing latent, context-dependent conceptual approximations as soft atoms that lack the persistent identity and compositional constraints of stable atomic units. This motivates an architectural view in which large language models function as dynamic fusion engines that navigate and compose persistent conceptual structures rather than serving as the sole repository of those structures.

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