Google DeepMind has introduced Genie 3, an advanced AI model capable of generating interactive 3D worlds from simple text prompts. These virtual environments run at 720p resolution and 24 frames per second, allowing real-time exploration via mouse and keyboard. Genie 3 can create realistic, minutes-long playable spaces with consistent physics, enabling immersive and dynamic user experiences. Beyond world generation, the model can steer images and videos and chain complex actions to achieve sophisticated goals. Notably, Genie 3 facilitates a novel setup where one AI creates a virtual environment while another AI operates within it, exemplified by DeepMind's SIMA agent acting inside Genie 3-generated worlds. This capability supports applications such as training robots in simulated warehouses to practice logistics tasks, advancing toward embodied artificial general intelligence (AGI). Google DeepMind views Genie 3 as a critical tool in progressing toward AGI and enhancing agent-based AI systems that integrate planning and multimodal language abilities. The technology blurs the line between game development and AI prompting, potentially transforming how interactive virtual environments are created and utilized.