FEATURED · BUSINESS The next frontier of AI: how ‘world models’ are simulating reality and virtual spaces
July 10, 2026 1 min read
BUSINESS

The next frontier of AI: how ‘world models’ are simulating reality and virtual spaces

Source: SCMP — China Business

PUBLISHED
July 10, 2026
CATEGORY
SC
SCMP — China Business
eChina Team
1

Increasingly, AI systems are expected to predict how environments will respond to actions before they are taken Artificial intelligence has spent years learning to generate words, images and videos. Now, the industry’s attention is shifting towards “world models” – AI systems designed to simulate how the physical or digital world changes over time. While the term was originally associated with physics simulations and robotics, a growing number of Chinese companies are applying the concept more broadly. The technology remains in its infancy, with little consensus on what a world model should ultimately look like. World models have quickly become one of AI’s hottest buzzwords, with big tech names jumping into the fray.

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