Vercel's Pranati Perry explains that tools like V0 occupy a new space between static design (Figma) and development. They enable designers and PMs to create interactive prototypes that better communicate intent, supplement PRDs, and explore dynamic states without requiring full engineering resources.

AI tools like Google's Genie can generate game worlds, but they don't threaten established platforms like Roblox and Fortnite. The real moat for these incumbents isn't content creation but their massive, engaged user networks, in-game economies, and robust multiplayer infrastructure, which are difficult to build from scratch.

AI-powered "vibe coding" is reversing the design workflow. Instead of starting in Figma, designers now build functional prototypes directly with code-generating tools. Figma has shifted from being the first step (exploration) to the last step (fine-tuning the final 20% of pixel-perfect details).

Google's Project Genie can generate playable game worlds from text prompts, a feat that would have seemed like AGI recently. However, users' expectations immediately shift to the next challenge: demanding AI-generated game mechanics like timers, scoring, and complex interactions.

Large language models are insufficient for tasks requiring real-world interaction and spatial understanding, like robotics or disaster response. World models provide this missing piece by generating interactive, reason-able 3D environments. They represent a foundational shift from language-based AI to a more holistic, spatially intelligent AI.

Instead of purely generative approaches, Moon Lake AI's strategy for creating interactive worlds involves using AI reasoning models to control and combine existing high-fidelity computer graphics tools. This is analogous to an LLM using a calculator, leveraging specialized tools for a more efficient and higher-quality outcome.

Product Requirement Documents (PRDs) are often written and then ignored. AI-generated prototypes change this dynamic by serving as powerful internal communication tools. Putting an interactive model in front of engineering and design teams sparks better, more tangible conversations and ideas than a flat document ever could.

As AI makes the act of writing code a commodity, the primary challenge is no longer execution but discovery. The most valuable work becomes prototyping and exploring to determine *what* should be built, increasing the strategic importance of the design function.

Game engines and procedural generation, built for entertainment, now create interactive, simulated models of cities and ecosystems. These "digital twins" allow urban planners and scientists to test scenarios like climate change impacts before implementing real-world solutions.