Goldman tackles AI’s missing link: the ‘world model’ that every AI godfather is racing to figure out

Goldman Sachs Global Institute published a report identifying "world models" as AI's next frontier, arguing that current large language models lack internal understanding of cause-and-effect in physical and social systems. The report cites leading researchers including Yann LeCun (developing JEPA at AMI Labs) and Fei-Fei Li (World Labs, focused on spatial intelligence) already pursuing this direction. Goldman argues this represents a qualitative leap in capabilities and could substantially alter infrastructure investment requirements.