The Rise of World Foundation Models
Dec 23, 2025
7 min read

Understanding the Landscape and the Role of Emerging Frameworks Like NVIDIA’s Cosmos

At NeurIPS this year, one message was impossible to ignore: AI will not reach its full potential until it can understand and operate within the physical world. The shift from static perception to dynamic, embodied intelligence has been building for years. Still, breakthroughs in generative modeling, hardware acceleration, and large-scale simulation have pushed the field to a decisive moment.
Across academia and industry, World Foundation Models (WFMs) are emerging to meet this need. These models enable AI to perceive, predict, and simulate environments in motion, learning not just from curated datasets but from rich, generative experience.
Among the frameworks shaping this new landscape is NVIDIA’s Cosmos, which combines video generation, physics-aware simulation, and robotics workflows into a unified world-modeling ecosystem, demonstrating how rapidly WFMs are evolving into practical, scalable tools.
This blog explores the rise of WFMs, the current state of the field, the industry-wide momentum behind this movement, and the role of frameworks such as Cosmos within that broader context.

Why the World Needs World Models

To understand any WFM, including Cosmos, you need to understand the problem they are built to solve. Traditional AI has been remarkably successful at analyzing static images and structured inputs. But real-world systems do not operate in still frames. They operate in movement, in continuous interactions, in sequences rich with dependencies.
Robotics, autonomous vehicles, manufacturing lines, smart city systems, and medical monitoring all depend on the ability to predict what will happen next, understand how actions change the environment, reason about cause and effect, and adapt in real time.
These challenges require temporal intelligence, something conventional perception models were never designed for. World models step into this gap: they learn the dynamics of environments to simulate them, anticipate outcomes, and guide decision-making under uncertainty.
This shift, from static perception to dynamic world modeling, is becoming central to the future of AI.

The Current Status of World Foundation Models (WFMs)

WFMs are experiencing rapid growth, but are still early in their journey. After years of progress in video prediction and generative modeling, they are transitioning from lab research into practical technologies. Google DeepMind, OpenAI, Meta, Tesla, Microsoft, and others are unveiling models that interpret dynamic scenes, simulate realistic futures, and serve as training tools for agents.
Despite this momentum, the field is far from unified. Different organizations are exploring long-horizon video generation, multimodal grounding that blends language, vision, geometry, and action, physics-aware modeling, controllable simulation environments for agents, and architectures optimized for either cloud-scale computation or edge deployment.
The approaches vary, but the shared belief is clear: WFMs will become a core component of Physical AI, enabling systems to learn through experience rather than manual annotation.
Today, WFMs are entering a phase where they are mature enough to impact industry, especially robotics, AV, digital twins, and simulation-driven analytics, yet flexible enough to evolve rapidly as hardware and modeling techniques improve.

Cosmos: A Representative Example of a Modern World Model Framework

Within this emerging landscape, NVIDIA’s Cosmos is one of the clearest demonstrations of how WFMs can be structured for industrial use. While each WFM has its own philosophy, Cosmos exemplifies several design patterns now appearing across the ecosystem.
Cosmos is not a single model but a unified system for learning in motion, built on the principle that AI should train in a generative, physics-informed world. It interconnects perception, simulation, and action, enabling agents to learn from experience rather than just curated datasets.
A defining idea behind Cosmos and many WFMs is the use of video as the primary learning signal. Video encodes motion, behavior, and causality in ways no still image can. Cosmos integrates advanced video generation to reproduce realistic motion and physical interactions, enabling training pipelines where agents observe, predict, and act in dynamic environments.
Paired with NVIDIA’s simulation platforms (Isaac, Omniverse), Cosmos demonstrates how WFMs can bridge physics, generative AI, and embodied learning.

A New Approach to Robotics and Autonomous Systems

Although each organization’s WFM differs in architecture and scope, they tend to converge around similar use cases, especially robotics and AV. Cosmos provides one illustration of why WFMs are so promising here.
Training a robot in the physical world is slow, costly, and risky. Training it inside a world model changes everything. Agents can experiment freely, explore high-risk scenarios, and learn thousands of task variations before touching real hardware.
For autonomous vehicles, WFMs can generate long-tail scenarios — rare but safety-critical events that are difficult to capture in real-world data. Whether the model comes from NVIDIA, DeepMind, OpenAI, or another competitor, the promise is the same: WFMs can drastically accelerate validation and reduce dependence on extensive field testing.
Cosmos provides a clear example of how such simulation-driven learning can work at scale, but it is part of a broader industry shift toward generative simulation for embodied AI.

Scaling Intelligence Across Industries

One of the reasons WFMs are gaining traction is their ability to generalize beyond robotics and AV into domains such as manufacturing, healthcare, and smart infrastructure.
Factories can simulate production lines or equipment failures; hospitals can model human motion patterns for mobility assessment; cities can explore traffic and safety scenarios; logistics systems can rehearse routing and congestion patterns.
Cosmos demonstrates these possibilities by combining realistic video generation with physics-based simulation, but it is not the only framework exploring them. WFMs from DeepMind, Meta, Microsoft, and open research groups are all pushing toward the same goal: building models that let organizations reason about environments that are too expensive, too risky, or too private to capture fully in the real world.

The Technical Foundations of Modern WFMs: Video, Physics, and Multimodal Learning

Cosmos is a powerful example of how technical components are coming together across the WFM ecosystem. Most leading WFMs, including Genie (DeepMind), VideoWorld (Microsoft), and Sora-like architectures (OpenAI), share standard foundations:
  • Video generation models capture temporal consistency and motion.
  • Latent representations compress video into efficient training signals.
  • Multimodal learning fuses text, geometry, sensory input, and action.
  • Physics grounding prevents unrealistic or impossible interactions.
  • Integration with simulation enables iterative training loops.
Cosmos particularly highlights the synergy between generative video and physics simulation, marking an essential step in closing the gap between imagination and reality, a theme echoed across most modern WFM research.

Toward a Future Built on Dynamic Intelligence

As WFMs evolve, one message is becoming clear: we need to move beyond theory and begin demonstrating real, tangible examples of how generative AI and video-based world models can transform everyday processes. Researchers and industry practitioners alike must explain how these systems improve efficiency, reduce human risk, and deliver measurable value across real workflows. Physical AI is not confined to robotics and autonomous vehicles; it already touches agriculture, biodiversity monitoring, manufacturing, healthcare, and countless other domains where understanding and predicting motion is essential.
Although frameworks differ, the trajectory is unmistakable: WFMs are redefining how AI learns by shifting from static datasets to simulated experiences that allow models to build intuition about motion, interaction, and causality. Whether through Cosmos or other emerging WFM architectures, the ambition remains the same: to create systems that can reason about the physical world before acting within it. In the future, robots will master tasks in virtual environments, vehicles will refine their decision-making through generative simulations, and digital twins will optimize factories, clinical workflows, and urban infrastructures.
WFMs are still developing, but they represent a turning point. Their growing ability to understand the world in motion, and to learn through dynamic experience, will define the next generation of AI. The opportunity is in front of us; now it is up to the research and industry communities to prove their value in real-world applications.

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The Rise of World Foundation Models