In this episode of the a16z Podcast, Guido Appenzeller interviews Fei-Fei Li, a pioneer in AI and co-founder/CEO of World Labs, and Martin Casado, a16z general partner, about spatial intelligence and world models. They discuss why current AI, dominated by language models (LLMs), is missing the fundamental aspect of space and 3D understanding. Fei-Fei shares her journey to founding World Labs, driven by the conviction that spatial intelligence is crucial for general intelligence and various applications like robotics, creativity, and creating virtual universes. Martin Casado provides insights into the limitations of language-based AI in navigating the physical world and highlights the potential of world models to generate and manipulate 3D representations from 2D inputs, impacting fields from video games to architecture. The conversation also touches on the technological advancements making world models possible and the unique expertise required to develop them.