World Models 101
Contents
01

What People Mean

13 min read · interactivePDF

The phrase now covers at least five different things, and the people using it rarely say which. A field guide to telling them apart before you read another paper about them.

A clip goes past on your timeline. Somebody is walking through a landscape with the arrow keys, and the caption says it was generated, not built. It looks like a video game nobody made.

The replies call it a world model. So you go and look the phrase up.

Click the picture, then use the arrow keys or WASD.

Fig. 1.1Not a recording. The ridgelines are computed from your heading the moment they are drawn, and nothing behind the picture stores a landscape. Walk away from the marker and come back with the switch off, then again with it on.

Ten minutes later there are five tabs open and they describe five different machines. One generates video you steer with the arrow keys. One exports geometry into Blender. One is a paper about predicting embeddings that never shows you a video at all.

That is not a research failure. Between roughly 2018 and 2024, computer vision, reinforcement learning, robotics and interpretability all reached for the same two words, and every one of them was describing something real. By 2026 the labs had started publishing dictionaries.

In this chapter I'll deal with the five definitions in current use, where each came from, and the one test that separates them. Chapters 2 through 6 build the machinery underneath.

Fig. 1.2Five results, five different classes of system, all of them called world models by the people who built them.

Origins

The term started somewhere specific. In control theory, and later in reinforcement learning (training an agent by letting it act, watching what happens, and rewarding what worked), a world model is a learned transition function. A state and an action go in. The next state comes out.

Written down it looks like this.

p(,)

the chance of , given and

Hover any part of the equation, or any phrase beneath it.

Fig. 1.3Every system in this chapter is an argument about what belongs in place of s: pixels, geometry, a compact vector, or an embedding. That single choice is what separates the five definitions.

Kalman's 1960 filter nailed one half of it: working out a hidden state from noisy measurements (it estimates state, but never asks what happens if I act, so it is ancestry rather than membership). Around 1990 Schmidhuber built neural systems in two parts, where one network modelled the world and another chose actions, and the first predicted what the second's choices would do. Sutton's Dyna did something related. It alternated between learning from real experience and learning from experience the model made up.

Ha and Schmidhuber's World Models (2018) made the label popular. Their system had three pieces: an encoder (a network that squeezes a video frame down to a short list of numbers), a dynamics model that predicted where those numbers go next, and a small controller trained almost entirely inside the model's own imagined rollouts.

PlaNet (2018) learned those dynamics straight from pixels and planned in latent space (latent just means the model's own compressed description: a few hundred numbers instead of a million pixels). Dreamer (2019) used the same machinery to learn behaviour from imagined trajectories.

Then the word travelled. JEPA stopped predicting what the next frame looks like and started predicting a summary of it. Genie, Cosmos and Marble pushed the other way, toward worlds you can see and walk through. Four traditions, each holding a different piece of one problem. They only noticed they were neighbours when the outputs started to resemble each other.

actionObservationEncoderState estimateDynamics (given)DecoderPredictionController

Recover a hidden state from noisy measurements by running a forward model and correcting it against what you observe. The dynamics are supplied, not learned, and nothing here asks what happens if I act.

Fig. 1.4Scrub the years. Nothing is replaced along the way, only added, relabelled or retargeted, which is why systems built for different reasons ended up sharing a name.

The five definitions

These are contracts, not cages. They describe what a system promises, and modern work crosses between them routinely.

Ordered by what they predict

More concrete  ←   what gets predicted  →  more abstract

Not a system you run

Five things the phrase is used to mean. Four of them are systems you can run; the fifth is a claim about what is inside one. Pick any of them.

Fig. 1.5Four are systems you can run, ordered by how abstract the predicted object is. The fifth is not a system, which is why it sits off the axis.

The Renderer predicts observations, usually pixels. GameNGen generates DOOM frames conditioned on previous frames and inputs. Genie 3 is reported to generate interactive video at 720p and 24 frames per second, to stay coherent for several minutes, and to take natural-language interventions mid-session: change the weather, add a flock of birds. Persistence exists, but it is learned through generation rather than guaranteed by stored geometry.

The Simulator predicts queryable structure. Marble takes text, an image or a rough 3-D layout and returns two representations at once. Gaussian splats (millions of coloured blobs, cheap to render, nothing to bump into) carry the appearance. Triangle meshes carry the structure, collider meshes included (the invisible geometry a physics engine actually collides against). World Labs shipped it to limited beta in November 2025 and general availability in February 2026. NVIDIA open-sourced Cosmos, which generates physically-aware video specifically as robot and autonomous-vehicle training data.

Cosmos is the case that keeps the map honest, so it is worth slowing down for. NVIDIA describes Cosmos Predict as generative video, while Omniverse supplies the explicit 3-D simulation. File the whole platform under "simulator" and you hide the distinction worth learning.

The wider lesson is that a platform is not a category. One product can expose a pixel predictor, a 3-D simulator and an action-conditioned model at the same time, and asking which of the five it is will get you nowhere. Ask which one you are being sold, and which interface you are about to build against. The categories describe contracts, and a large enough system signs more than one.

Renderer / predicts observations

Google DeepMindGenie 3: Creating dynamic worlds that you can navigate in real-time

Simulator / predicts structure

World LabsIntroducing Marble by World Labs
Fig. 1.6Not pass/fail. Marble hands you geometry another program can open, which you can check for yourself; Genie 3's coherence is reported by the lab that built it and cannot be. The difference is what each promises, and how much of it you can verify.

The Dynamics Model predicts compact state and reward under actions. PlaNet plans online in latent space; Dreamer learns behaviour from trajectories imagined through those dynamics. What matters here is not how real it looks. It is whether you can search inside it. Try a hundred possible action sequences, score them, and keep the best one.

A warning about the name, because it trips people who go on to the papers. Ha and Schmidhuber's system has three modules, and they call the third one the controller: the small policy that picks actions. The world model is the module beside it, the one the controller plans inside. So this category is the model, not the controller, and naming it "the Controller" would name it after the one piece that is explicitly not a world model.

The Representation predicts embeddings (a list of numbers standing in for an image or a clip, arranged so similar things sit close together) and then throws the prediction away. I-JEPA hides part of an image and predicts the embedding of the missing piece, rather than redrawing the pixels. V-JEPA 2 pre-trains on more than a million hours of video with no actions involved. A second stage post-trains an action-conditioned variant for model-predictive control (plan a few steps, execute one, re-plan). Meta reports it driving a Franka arm in a lab it never saw during training, and planning around 30× faster than Cosmos. Treat that number as a comparison between different contracts rather than a ranking.

Notice where that second stage lands. Action-conditioned, rolled forward, searched over: that is the Dynamics Model's contract, reached from the other direction. Which is what the categories are for. They describe what a system was trained to predict, not a permanent identity, and mature systems migrate. V-JEPA 2 begins as a Representation and grows a Dynamics Model on top of it.

The Implicit Model is a different kind of claim. Othello-GPT was trained only to predict legal Othello moves and never shown a board. Li et al. (2022) found board state represented internally, recoverable by a probe (a small classifier trained to read one specific fact out of a network's activations). Intervening on that representation changed the moves the model went on to make. Nanda et al. (2023) later found a closely related linear representation. Nobody handed the model a callable function named world_model. The phrase describes evidence about what arose inside another system.

The test

You have already run it.

Figure 1.1 has a switch marked hold the world. Turn it off, walk away from the marker, come back: it has moved. Turn it on and the marker is exactly where you left it.

That suggests an easy way to tell these systems apart.

Turn around. Walk away. Turn back. Is it the same room?

It ought to work. Something that really holds a world inside it should keep the furniture where you left it. Something that is only drawing pictures should not be able to.

It does not work, and the reason is worth a minute.

There are two ways to pass this test. You can store the room somewhere and look it up when the viewer turns back, which is what my switch does. Or you can get very, very good at drawing a room that matches the one you drew a moment ago.

From the outside, those are identical. The furniture is still there either way, and nothing you can see from where you are standing tells you which just happened.

A large model trained on a lot of video learns the second way. Nobody gave it a room to keep. It got good at continuing what it had already started, and continuing consistently is part of that.

So the question cannot sort them. Ask it anyway, because it points at something more useful than the answer it gives.

When you turn away from the chair, the chair does not stop existing. It stops being visible. Those are two different things, and nearly everything difficult about this subject lives in the gap between them.

What is actually there is called the state. The part of it you can see right now is called the observation.

State is the underlying reality of the world; complete in principle, but never directly visible to any agent inside it. Observations are an agent's partial view of that reality.

World Labs on the distinction underneath the taxonomy (A Functional Taxonomy of World Models, June 2026)

You never get the state. You get observations, and you have to work backwards from them. The chair behind you, a ball still rolling somewhere out of shot, whether the cupboard is open: all real, none of it visible. Working out the rest from the part you can see is called partial observability, and Chapters 2 through 6 are largely about coping with it.

None of this is new. A Cambridge psychologist described the fix in 1943, long before there was anything to build it out of.

If the organism carries a ‘small-scale model’ of external reality and of its own possible actions within its head, it is able to try out various alternatives, conclude which is the best of them, react to future situations before they arise… and in every way to react in a much fuller, safer, and more competent manner to the emergencies which face it.

Kenneth Craik on internal models, forty years before anyone trained one (The Nature of Explanation, 1943)

Carry a small model of the world in your head, and you can test an action before you take it. That is the whole idea, and every definition on the map is a different bet on what the model should contain.

The loop

One object sits underneath all five definitions.

An environment has a state. An agent receives observations revealing part of it. From observations and memory it builds an internal state. A model predicts how things could evolve. The agent acts. The world changes. A new observation arrives.

observeinferpredictchooseintervene · the world is now differentWorldhidden state sₜObservationoₜBeliefinternal state bₜImaginationpossible futuresActionaₜ

Every definition is a specialist on one arc of this loop. Hover any of them.

Fig. 1.7The agent–environment loop, with each definition shown as a specialist on one arc. This is why apparently incompatible systems inherit the same name.

Three questions follow directly, and each gets a chapter.

How sure should it be? Throw a ball behind a wall and ask where it is now. A single exact position is the wrong shape of answer, because you genuinely cannot know. It might have bounced off something, or stopped against a kerb, or still be rolling. A model that hands back one confident coordinate has quietly thrown away the fact that it was guessing.

PlaNet carries two things at once instead. A deterministic part (computed the same way every time, so it always follows from the last state) holds whatever reliably follows from what came before. A stochastic part (sampled rather than computed, so the same input can produce several different futures) holds whatever could still go either way. Being unsure is not the failure. Being sure without grounds is.

Do actions change the prediction? What happens next and what happens if I push this are different questions. Only the second one lets you compare options before choosing. A model that answers it is called action-conditioned (it is told which action was taken, so it can answer what-if instead of only what-next), and that is what control needs.

How far can it roll forward? One prediction is rarely enough. To plan, a model has to feed its own answer back in and predict again, and again, on top of what it just made up. The number of steps you ask for is called the horizon.

p(st, at)p(,)

Ask for instead of and you still only get and

Only two things changed. Hover either side to see which.

Fig. 1.8The same model asked for a stretch of future instead of a single step. Two things grow and one does not, which is the whole difficulty in one line.

Errors pile up along that stretch. Nothing dramatic happens at any single step, which is what makes it hard to notice: the model is only ever slightly wrong. Get step one slightly wrong and step twenty can be somewhere else entirely.

Indistinguishable so far.

Steps predicted

1

Gap right now

0.0 step-widths

Worst gap so far

0.0 step-widths

Fig. 1.9Both dots start in the same place under the same rules, except one is running dynamics that are a few percent off. Drag to about 8 and they are still together. Keep going. Nothing breaks at any step; the gap is the accumulation.

Dreamer exists to learn behaviour across many imagined steps. DeepMind names long-horizon consistency as a central open problem for generated worlds. Same enemy, opposite ends of the field.

Now go back to the clip. It is a Renderer, and you can say why: it predicts observations, it holds the room because it learned to, and nothing in it promises geometry underneath.

The next one that goes past your timeline will be called a world model too. The useful question is not whether it is impressive. It is which of the five it is, and whether the person posting it could tell you.

Where a claim only holds under one of the five, this course says which.

Try it

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It takes one photo of a kitchen and returns a mesh you can import into a game engine, with collision volumes on the worktops.

Which definition is it?

Fig. 1.10Thirteen questions across the whole chapter: placing systems it never named, and the ideas the figures were built to teach. One is a trap, and it is the mistake worth making here rather than in a meeting.

Thanks for reading. Chapter 2 deals with the Dynamics Model in full: what a learned simulator is, what having one buys you, and the way it fails that no amount of engineering has removed.

Sources

Fig. 1.11Ordered for someone building on this rather than for historical completeness. First-party material preferred throughout.