Nvidia(US:NVDA) Feng Huang Wang·2025-10-13 03:21Core Insights - xAI, led by Elon Musk, is intensifying efforts to develop a "world model" to compete with Meta and Google in the next generation of AI systems capable of autonomous navigation and design in physical environments [1][2] - The world model is a generative AI model that understands dynamic features of the real world, including physical and spatial properties, using various input data types [1] - xAI has hired experts from NVIDIA to advance the development of these models, which are expected to enhance AI capabilities beyond current large language models [1][2] Company Developments - xAI has recruited two AI researchers, Zeeshan Patel and Ethan He, with experience in world model development [2] - The company plans to launch an AI-generated game by the end of next year, reaffirming its commitment to this goal [2] - Recently, xAI released an upgraded image and video generation model, which is now available for free to users [2] Industry Context - Other leading AI labs, including Google and Meta, are also working on world models, indicating a competitive landscape [3] - The potential market size for world models is suggested to be close to the current global economic total, highlighting significant commercial interest [2] - Challenges remain in finding sufficient data to simulate the real world and train these models, which is both difficult and costly [3]