The statement "the learned over-parametrized models in fact reside on a low intrinsic dimension" means that even though deep neural networks have a large number of parameters, they can still be represented by a much smaller set of underlying features. This is known as the "intrinsic dimension" of the model. In other words, the model can be thought of as having a lower-dimensional structure that captures most of the important information needed for its task. This insight has led to techniques like LoRA, which exploit this low-dimensional structure to reduce the number of trainable parameters and make pre-trained models more efficient.