Elon Musk’s xAI is entering a new frontier: building “world models” that let AI reason about and design physical spaces. The company hired engineers from Nvidia to help build these capabilities. Musk’s team aims to fuse spatial awareness, planning, and visual understanding into systems that can imagine and manipulate real environments. This push could shift how we think about AI — from language and prediction to building systems that act meaningfully in the world.

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