Yoko Li, Martin Casado, and James Cowling discuss the origin of AI Town from a companion app project. They talk about the unpredictability of AI agents in the town and the choice to use Javascript and Convex for development. They also touch on interacting with AI models as if they are lifeforms and the potential for wide-ranging simulated AI worlds. The podcast explores the distinction between programming and modeling in AI, as well as the role of games in fostering creativity and innovation in AI Town.