This podcast episode explores the impressive capabilities of Sora, a generative AI tool that can create realistic videos. It discusses how Sora accurately simulates real-world physics and generates high-definition images. The episode also highlights the groundbreaking video generation capabilities of Sora, showcasing its ability to create visually consistent and realistic videos. The podcast discusses the strategies used by YC companies to build foundation models with limited resources and introduces several innovative AI tools being developed. It emphasizes the importance of understanding the components of building foundational models and the growing importance of synthetic data in AI training. The podcast also discusses the potential applications of generative AI beyond entertainment, particularly in the field of physics simulation. Additionally, it explores the transformative potential of AI in various industries and concludes by encouraging listeners to consider Y Combinator as a starting point for their AI journey.