> If an animal can't sleep it will eventually die.

Very few animals fail to eventually die even with as much sleep as they want.

But before death, there is a loss of cognitive function from sleep deprivation, and we observe this too with AI whose context windows get too full.

While we don't know very much about sleep, my understanding is that we do have a long list of things that we do during it, we just don't really understand if sleep is necessary for each of them or simply a convenient opportunity for it.

There's lots of things biology does in response to easy-to-detect proxy signals instead of the real thing they care about: Our sensation of needing to breathe more is based on too much carbonic acid in our blood, not lack of oxygen, which is why in general nobody is allowed in an elevator with a liquid nitrogen dewar; Our natural distaste for incest is based on who we grew up with, not our actual DNA; Get too cold and some people suddenly feel warm and want to (and some do) take all their clothes off even though that would just make them hypothermic even faster.

Being asleep may trigger the things we need to get done, but that doesn't mean sleep is *fundamentally* necessary for the things we need to get done. It could be just that it happens to be the way our biochemistry is wired, and we may find some other way to trigger those things.

The quotation given by djeastm would by my guess for what a dream is, and why we have them. But we don't spend all our time asleep, dreaming. And I'd be the first to say that my guess isn't worth much, as I'm not a brain scientist.