Our research is testing the framework of predictive processing and will identify different putative circuit elements and cell types that are thought to form the circuit in mouse visual cortex. We are using a combination of physiological recordings, optogenetic manipulations of neural activity, and gene expression measurements to determine the cell types that have functional responses consistent with different prediction errors, as well as those coding for the internal representation. In particular, we have identified a mechanism of lateral interactions between cortical areas that underlies the computation of audiovisual prediction errors. With experience, auditory input can begin to influence visual perception. These findings not only advance our understanding of how the brain processes information from different senses but may also have implications for understanding disorders that result in hallucinatory percepts. In addition, we have identified molecular markers for positive and negative prediction error neurons in cortex. This will allow us to perform targeted manipulations of cortical circuits to test various theoretical predictions of cortical function. Finally, we have provided a set of findings consistent with the interpretation that layer 5 neurons function to maintain an internal representation in the cortex. We are particularly excited by this, as it is likely that these neurons are essential for the neuronal correlate of conscious perception.