Big AI firms pump money into world models as LLM advances slow

Runway, a video generation start-up that has deals with Hollywood studios, including Lionsgate, launched a product last month that uses world models to create gaming settings, with personalized stories and characters generated in real time.

“Traditional video methods [are a] brute-force approach to pixel generation, where you’re trying to squeeze motion in a couple of frames to create the illusion of movement, but the model actually doesn’t really know or reason about…