AI Industry Shifts Focus from Chatbots to ‘World Models’ -

As large language models such as ChatGPT and Claude mature, a growing number of AI researchers and entrepreneurs are turning their attention to “world models” — systems designed to understand and interact with physical environments rather than just process language.

Computer scientist Louis Castricato left Brown University to launch Overworld, a startup focused on AI that can navigate virtual and real-world spaces.

Experts such as Fei-Fei Li and Yann LeCun see world models as the next major frontier in artificial intelligence.

Unlike traditional language models trained on text and images, world models aim to learn how objects move, react to force, and behave in space and time.

Researchers believe this technology could play a crucial role in advancing robotics, physical AI, weather prediction, and interactive gaming.

Investors are increasingly backing startups developing world-model technology, viewing it as a key step toward building smarter robots and AI agents capable of planning and adapting in real-world environments.

Many experts believe this shift could define the next era of AI innovation.-ERMD

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