World Labs, the startup founded by renowned AI pioneer Fei-Fei Li, has made a groundbreaking announcement with the unveiling of its first project: an AI system that can generate interactive, 3D scenes from a single image. This innovative technology has the potential to transform industries such as gaming, film, and architecture, among others.

The AI-generated scenes, which can be explored on World Labs' website, are rendered live in the browser and feature a controllable camera with adjustable simulated depth of field (DoF). This allows users to immerse themselves in the virtual environment, with the ability to adjust the level of blur in the background objects. While the scenes may appear slightly cartoonish, they demonstrate a remarkable level of realism and interactivity.

World Labs' system is part of the emerging category of AI known as "world models," which simulate games and 3D environments. However, unlike other world models, such as Decart's Minecraft-simulating Oasis, World Labs' approach ensures that scenes remain consistent and obey the basic laws of physics, giving them a sense of solidity and depth.

The system can also apply interactive effects and animations to scenes, including changing object colors and dynamically lighting backdrops. According to World Labs, generating 3D content instead of 2D improves control and consistency, which will have a significant impact on the way movies, games, simulators, and other digital manifestations of our physical world are created.

While the technology is still in its early stages, with limitations such as restricted movement and occasional rendering errors, World Labs has assured that it is actively working to improve the size and fidelity of its generated worlds and experimenting with new ways for users to interact with them.

World Labs, which launched earlier this year, has raised a substantial $230 million in venture capital from investors including Andreessen Horowitz (a16z), Ashton Kutcher, Intel Capital, AMD Ventures, and Eric Schmidt. With a valuation of over $1 billion, the company aims to have its first product ready by 2025.

Beyond interactive scenes, World Labs plans to develop tools that will be useful to professionals such as artists, designers, developers, filmmakers, and engineers. The company is targeting a wide range of customers, from video game developers to movie studios, with its technology.

As World Labs co-founder Justin Johnson explained on a recent episode of the a16z podcast, "We already have the ability to create virtual, interactive worlds, but it costs hundreds and hundreds of millions of dollars and a ton of development time. [World models] will let you not just get an image or a clip out, but a fully simulated, vibrant, and interactive 3D world."

The implications of World Labs' technology are far-reaching and exciting, with the potential to revolutionize industries and create new opportunities for creators and innovators. As the company continues to develop and refine its technology, it will be fascinating to see the impact it has on the world of virtual reality and beyond.