When you walk around in a version of the video game Minecraft from the AI companies Decart and Etched, it feels a little off. Sure, you can move forward, cut down a tree, and lay down a dirt block, just like in the real thing. If you turn around, though, the dirt block you just placed may have morphed into a totally new environment. That doesn’t happen in Minecraft. But this new version is entirely AI-generated, so it’s prone to hallucinations. Not a single line of code was written.

For Decart and Etched, this demo is a proof of concept. They imagine that the technology could be used for real-time generation of videos or video games more generally. “Your screen can turn into a portal—into some imaginary world that doesn’t need to be coded, that can be changed on the fly. And that’s really what we’re trying to target here,” says Dean Leitersdorf, cofounder and CEO of Decart, which came out of stealth this week.

Their version of Minecraft is generated in real time, in a technique known as next-frame prediction. They did this by training their model, Oasis, on millions of hours of Minecraft gameplay and recordings of the corresponding actions a user would take in the game. The AI is able to sort out the physics, environments, and controls of Minecraft from this data alone.

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