A Bose-Einstein condensate is dispersively coupled to a single mode of an ultra-high finesse optical cavity. The system is governed by strong interactions between the atomic motion and the light field even at the level of single quanta. While coherently pumping the cavity mode the condensate is subject to the cavity optical lattice potential whose depth depends nonlinearly on the atomic density distribution. We observe bistability already below the single photon level and strong back-action dynamics which tunes the system periodically out of resonance.
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