**News Flash: AI Startup World Labs Launches with $1B Valuation**

World Labs, an AI startup co-founded by former Google Cloud AI boss Fei-Fei Li, officially launched on September 13. The company, valued at over $1 billion, has raised more than $230 million to develop "spatial intelligence" systems.

World Labs aims to revolutionize AI by creating "Large World Models" (LWMs) that can interact with the world in 3D, unlike current models limited to text, audio, and video. The goal is to enable AI to understand and navigate 3D spaces, potentially transforming fields like robotics and virtual worlds.

Fei-Fei Li, known as the "Godmother of AI," envisions these advancements unlocking new creative possibilities for artists, designers, developers, and engineers. The company's technology could lead to AI-generated 3D virtual worlds, similar to how modern AI models generate text.