Fei-Fei Li: World Models and the Multiverse

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Dec 23, 2025

Fei-Fei Li, cofounder and CEO of World Labs, is a visionary in computer vision and AI. In this discussion, she reveals the crucial role of spatial intelligence in AI, explaining why world models can transform robotics and creativity. Reflecting on her journey, she describes the unique partnership with early investor Martin Casado. They delve into the limitations of language models versus the necessity of 3D understanding, and explore exciting applications for world models, paving the way for multiverse experiences in both real and virtual realms.

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INSIGHT

Language Is Lossy For The Physical World

Language models excel but are lossy for representing physical reality.
Spatial intelligence and 3D world models capture information language cannot and are core to broader intelligence.

ADVICE

Concentrate Resources To Productize World Models

Concentrate industry-grade compute, data, and talent to build world models.
Move beyond academic papers when a problem requires focused productization and scale.

INSIGHT

Reconstruction Beats Description For Action

Spatial reconstruction provides precise, actionable world understanding that language descriptions cannot.
Humans reconstruct 3D from perception; AI needs explicit 3D representations to act in the world.

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What if the next leap in artificial intelligence isn’t about better language—but better understanding of space?

In this episode, a16z General Partner Erik Torenberg moderates a conversation with Fei-Fei Li, cofounder and CEO of World Labs, and a16z General Partner Martin Casado, an early investor in the company. Together, they dive into the concept of world models—AI systems that can understand and reason about the 3D, physical world, not just generate text.

Often called the “godmother of AI,” Fei-Fei explains why spatial intelligence is a fundamental and still-missing piece of today’s AI—and why she’s building an entire company to solve it. Martin shares how he and Fei-Fei aligned on this vision long before it became fashionable, and why it could reshape the future of robotics, creativity, and computational interfaces.

From the limits of LLMs to the promise of embodied intelligence, this conversation blends personal stories with deep technical insights—exploring what it really means to build AI that understands the real (and virtual) world.

Follow Fei-Fei Li:

https://x.com/drfeifei

Follow Martin Casado:

https://x.com/martin_casado

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