Chinese AI Startups Turn to World Models to Reimagine Video Games
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An interactive display depicting an imagined virtual world at the China Digital Entertainment Expo & Conference, or ChinaJoy, in Shanghai on Aug. 1, 2026. Photo: Guan Cong/Caixin
Chinese artificial intelligence startups are moving quickly to bring emerging world models into the video game industry, betting the technology could open a new category of interactive entertainment.
Bolstered by massive funding rounds — mirroring a global investment trend that recently saw similar Silicon Valley ventures led by Fei-Fei Li and Yann LeCun raise $1 billion each — these companies are targeting China's 680 million-player market for early commercialization.
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