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How Fei-Fei Li Is Rebuilding AI for the Real World

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 chats with Fei-Fei Li, cofounder and CEO of World Labs, and Martin Casado, a16z General Partner and early investor in the company. Together, they explore the concept of world models—AI systems that understand and reason about the physical, 3D world—not just text. Fei-Fei, often called the “godmother of AI,” explains why spatial intelligence is a critical (and missing) component of today's AI systems, and why her new company is going all-in on solving this challenge. Martin shares the story of how he and Fei-Fei aligned on this vision long before it was trendy - and why it may define the future of robotics, creativity, and computation itself. From the limitations of LLMs to the promise of embodied AI, from personal anecdotes to deep technical insights, this is a discussion on what it truly means to build intelligence for the real (and virtual) world. Timecodes: 00:00 Spatial Intelligence 00:39 Fei-Fei Li’s Background 01:17 Building a World Model 05:14 Reflecting on AI's Evolution 08:07 The Importance of 3D Understanding 10:20 Unrolling Evolution: Why 3D Intelligence Is Harder Than Language 12:19 From Single Reality to Infinite Virtual Universes 16:52 3D vs 2D: Why 2D Isn’t Enough for Machines 17:57 Fei-Fei’s Personal Story of Losing Stereo Vision 19:24 Research and Development at World Labs Resources: Find Fei-Fei on X: https://x.com/drfeifei Find Martin on X: https://x.com/martin_casado Learn more about World Labs: https://www.worldlabs.ai/ Stay Updated: Let us know what you think: https://ratethispodcast.com/a16z Find a16z on Twitter: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Subscribe on your favorite podcast app: https://a16z.simplecast.com/ Follow our host: https://x.com/eriktorenberg Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

Fei-Fei LiguestErik TorenberghostMartin Casadoguest
Jun 4, 202522mWatch on YouTube ↗

Episode Details

EPISODE INFO

Released
June 4, 2025
Duration
22m
Channel
a16z
Watch on YouTube
▶ Open ↗

EPISODE DESCRIPTION

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 chats with Fei-Fei Li, cofounder and CEO of World Labs, and Martin Casado, a16z General Partner and early investor in the company. Together, they explore the concept of world models—AI systems that understand and reason about the physical, 3D world—not just text. Fei-Fei, often called the “godmother of AI,” explains why spatial intelligence is a critical (and missing) component of today's AI systems, and why her new company is going all-in on solving this challenge. Martin shares the story of how he and Fei-Fei aligned on this vision long before it was trendy - and why it may define the future of robotics, creativity, and computation itself. From the limitations of LLMs to the promise of embodied AI, from personal anecdotes to deep technical insights, this is a discussion on what it truly means to build intelligence for the real (and virtual) world. Timecodes: 00:00 Spatial Intelligence 00:39 Fei-Fei Li’s Background 01:17 Building a World Model 05:14 Reflecting on AI's Evolution 08:07 The Importance of 3D Understanding 10:20 Unrolling Evolution: Why 3D Intelligence Is Harder Than Language 12:19 From Single Reality to Infinite Virtual Universes 16:52 3D vs 2D: Why 2D Isn’t Enough for Machines 17:57 Fei-Fei’s Personal Story of Losing Stereo Vision 19:24 Research and Development at World Labs Resources: Find Fei-Fei on X: https://x.com/drfeifei Find Martin on X: https://x.com/martin_casado Learn more about World Labs: https://www.worldlabs.ai/ Stay Updated: Let us know what you think: https://ratethispodcast.com/a16z Find a16z on Twitter: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Subscribe on your favorite podcast app: https://a16z.simplecast.com/ Follow our host: https://x.com/eriktorenberg Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

SPEAKERS

  • Fei-Fei Li

    guest

    Stanford computer vision professor and cofounder/CEO of World Labs.

  • Erik Torenberg

    host

    Podcast host/interviewer at a16z.

  • Martin Casado

    guest

    General Partner at Andreessen Horowitz (a16z) focused on investing in software and AI.

EPISODE SUMMARY

In this episode of a16z, featuring Fei-Fei Li and Erik Torenberg, How Fei-Fei Li Is Rebuilding AI for the Real World explores fei-Fei Li’s push for 3D “world models” beyond language Fei-Fei Li argues that language is a powerful but lossy, non-natural encoding that cannot capture the full structure of the 3D physical world where animals and humans act.

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