Google DeepMind's Genie 2 can generate interactive 3D worlds

Engadget 

AI algorithms capable of generating a simulated environment in real-time -- represent one of the more impressive applications of machine learning. In the last year, there's been a lot of movement in the field, and to that end, Google DeepMind announced Genie 2 on Wednesday. Where its predecessor was limited to generating 2D worlds, the new model can create 3D ones and sustain them for significantly longer. Genie 2 isn't a game engine; instead, it's a diffusion model that generates images as the player (either a human being or another AI agent) moves through the world the software is simulating. As it generates frames, Genie 2 can infer ideas about the environment, giving it the capability to model water, smoke and physics effects -- though some of those interactions can be very gamey.