While language models understand the world through text, Demis Hassabis argues they lack an intuitive grasp of physics and spatial dynamics. He sees 'world models'—simulations that understand cause and effect in the physical world—as the critical technology needed to advance AI from digital tasks to effective robotics.

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.

AI and formal methods have been separate fields with opposing traits: AI is flexible but untrustworthy, while formal methods offer guarantees but are rigid. The next frontier is combining them into neurosymbolic systems, creating a "peanut butter and chocolate" moment that captures the best of both worlds.

Arvind Krishna firmly believes that today's LLM technology path is insufficient for reaching Artificial General Intelligence (AGI). He gives it extremely low odds, stating that a breakthrough will require fusing current models with structured, hard knowledge, a field known as neurosymbolic AI, before AGI becomes plausible.

AlphaFold's success in identifying a key protein for human fertilization (out of 2,000 possibilities) showcases AI's power. It acts as a hypothesis generator, dramatically reducing the search space for expensive and time-consuming real-world experiments.

Counterintuitively, Nobel laureate John Jumper's path to AI began not with abundant resources, but as a way to use sophisticated algorithms to compensate for a lack of computational power for protein simulations during his PhD.

Google DeepMind CEO Demis Hassabis argues that today's large models are insufficient for AGI. He believes progress requires reintroducing algorithmic techniques from systems like AlphaGo, specifically planning and search, to enable more robust reasoning and problem-solving capabilities beyond simple pattern matching.

John Jumper uses an analogy to explain the leap in complexity from prediction to design. Predicting a protein's structure is like recognizing a bicycle's parts. Designing a new, functional protein is like building a working bicycle—requiring every detail to be correct.

Following the success of AlphaFold in predicting protein structures, Demis Hassabis says DeepMind's next grand challenge is creating a full AI simulation of a working cell. This 'virtual cell' would allow researchers to test hypotheses about drugs and diseases millions of times faster than in a physical lab.