AI gets spatial intelligence

PLUS: ChatGPT gets new personalities and Anthropic's $50B compute bet

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Gen AI Art
November 14, 2025 • Estimated Reading Time: 10 minutes

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AI's understanding of the world is moving from 2D to 3D. A new 'world model' from AI pioneer Fei-Fei Li's company, World Labs, can now generate and edit entire 3D environments from simple text, image, and video prompts.

This new spatial intelligence is being positioned as a crucial advancement over current LLMs that lack grounding in the physical world. With initial uses in gaming and VFX, how long will it be until these models become a foundational tool for everything from robotics to architecture?

Today in AI:

  • AI gets spatial intelligence with a new world model

  • Anthropic's $50B custom data center plan

  • Microsoft's strategy to own the AI battlefield

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What’s new? AI pioneer Fei-Fei Li's company, World Labs, has launched Marble—its first commercial 'world model' that generates and edits persistent 3D environments from text, images, and videos.

What matters?

  • Users can create new worlds from text, image, and video prompts or edit existing ones to make granular changes.

  • The platform lets creators export worlds as Gaussian splats, meshes, or videos for direct use in gaming, VFX, and VR workflows.

  • The launch aligns with Li’s recent call for spatial intelligence, positioning world models as a crucial advancement over LLMs that lack grounding in physical space.

Why it matters?

While gaming and VR are obvious first steps, the potential applications extend to simulated environments for robotics, architecture, and cinematic world-building. Similar to image and video generators, these world models are poised to become a fundamental tool in creative and technical workflows across many domains.

GUIDE

What’s new? Anthropic announced a massive $50 billion investment to build its own custom data centers, a strategic play to secure the computational power needed for future AI models.

What matters?

  • This investment signals Anthropic's strategy to move beyond relying on cloud providers and vertically integrate its hardware and software stack.

  • The plan involves building its first custom data centers in Texas and New York, with construction scheduled to kick off in 2026.

  • The move intensifies the compute arms race, directly challenging efforts by companies like Microsoft to build their own AI superfactory networks for next-generation models.

Why it matters?

This isn't just about building data centers; it's a declaration of independence in the AI hardware race. Owning the full compute stack gives Anthropic the freedom to architect and train next-generation models on its own terms.

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What’s new? In a detailed interview, Microsoft CEO Satya Nadella laid out his strategy to win the AI era by becoming the essential infrastructure provider for AI agents, rather than competing to build the single best model.

What matters?

  • Nadella argues Microsoft's future isn't selling software per-user, but providing the virtual compute, storage, and security for agents with per-agent billing.

  • Microsoft plans to pivot GitHub into an "Agent HQ," a central dashboard for developers to deploy and manage competing AI agents from one interface.

  • The recent pause on data center expansion was a strategic choice to avoid getting stuck with old hardware and instead build a more flexible global network for a diverse set of customers.

Why it matters?

Nadella’s strategy suggests value will flow not just to the smartest model, but to the company owning the platform where all AIs operate. This platform-first approach indicates the critical battles in AI will be fought over infrastructure and integration, not just model leaderboards.

Everything else in AI

Google upgraded its Gemini Live audio features to make conversations feel more natural and responsive.

Baidu released ERNIE-4.5-VL-28B-A3B-Thinking, a new multimodal model that it claims outperforms both GPT-5 and Gemini 2.5 Pro on key visual benchmarks.

ByteDance launched Doubao-Seed-Code, an AI coding assistant that reportedly matches Claude Sonnet’s performance at a significantly lower price point.

Weibo open-sourced VibeThinker-1.5B, a compact model trained for just $7,800 that demonstrates strong performance in math, coding, and reasoning tasks.

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