The next major leap in AI may come from "world models," which aim to give LLMs an experiential, physical understanding of concepts like space and physics. This mirrors the difference between knowing facts from a book and having real-world experience.

Language is just one 'keyhole' into intelligence. True artificial general intelligence (AGI) requires 'world modeling'—a spatial intelligence that understands geometry, physics, and actions. This capability to represent and interact with the state of the world is the next critical phase of AI development beyond current language models.

Startups and major labs are focusing on "world models," which simulate physical reality, cause, and effect. This is seen as the necessary step beyond text-based LLMs to create agents that can truly understand and interact with the physical world, a key step towards AGI.

Large Language Models are limited because they lack an understanding of the physical world. The next evolution is 'World Models'—AI trained on real-world sensory data to understand physics, space, and context. This is the foundational technology required to unlock physical AI like advanced robotics.

Cuban believes today's LLMs, trained on text and images, are a limited step. The next leap will be "worldview" models trained on the fundamental physics of the real world, using data from video and sensors to understand cause and effect, not just language patterns.

To make genuine scientific breakthroughs, an AI needs to learn the abstract reasoning strategies and mental models of expert scientists. This involves teaching it higher-level concepts, such as thinking in terms of symmetries, a core principle in physics that current models lack.

Rather than just replacing physics-based models, AI can be used to select the *correct* physics model. Heather Kulik's team uses the quantum wave function itself as an input to a neural network to predict which quantum mechanical approximation will be most accurate for a specific material, a complex task that defies simple heuristics.

AI is developing spatial reasoning that approaches human levels. This will enable it to solve novel physics problems, leading to breakthroughs that create entirely new classes of technology, much like discoveries in the 1940s led to GPS and cell phones.

The ultimate goal isn't just modeling specific systems (like protein folding), but automating the entire scientific method. This involves AI generating hypotheses, choosing experiments, analyzing results, and updating a 'world model' of a domain, creating a continuous loop of discovery.