AI world models, also known as world simulators, are being hailed as a potential game-changer in the field. These models aim to create internal representations of how the world works and reason about the consequences of actions. They're being trained on a range of data, including photos, audio, videos, and text, with the goal of generating more realistic AI-generated content.

While some experts believe that world models could bridge AI with the real world, leading to breakthroughs in virtual world generation, robotics, and AI decision-making, others point out the significant technical challenges involved. These include massive compute power requirements, data hallucination, and internalization of biases.

Source: https://techcrunch.com/2024/10/28/what-are-ai-world-models-and-why-do-they-matter/