World Models Can Generate 3D Environments – So What’s Left for Studios to Build?

Overview The $1 Billion Bet on Spatial Intelligence World models are now a billion-dollar category. World Labs announced $1 billion in new funding in February 2026, with investors including AMD, Autodesk, NVIDIA, Fidelity, and Emerson Collective. Founded by AI pioneer Fei-Fei Li, the company is building what it calls “spatial intelligence” – a new frontier […]