Investors and researchers are increasingly arguing that the future of AI lies beyond large language models. In London and across Europe, startups are developing so-called world models designed to simulate physical reality rather than simply predict text.
Unlike LLMs, which rely on static datasets, world models aim to build internal representations of cause and effect. Advocates say these systems are better suited to autonomous vehicles, robotics, defence and industrial simulation.
London based Stanhope AI is among companies pursuing this approach, claiming its systems learn by inference and continuously update their internal maps. The company is reportedly working with European governments and aerospace firms on AI drone applications.
Supporters argue that safety and explainability must be embedded from the outset, particularly under frameworks such as the EU AI Act. Investors suggest that hybrid systems combining LLMs with physics aware models could unlock large commercial markets across Europe.
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