According to Demis Hassabis, Genie 3 can now accurately model intuitive physics, including complex elements such as lighting, gravity, material interactions, and especially liquids. The latest demonstration shows highly realistic water movement when a character interacts with a puddle, highlighting significant progress in AI-driven physics simulation for virtual environments. This advancement enables developers to create more immersive and responsive gaming experiences and opens new business opportunities in animation, virtual reality, and digital content creation by reducing reliance on manual coding for physical effects (source: Demis Hassabis on Twitter).

According to Jeff Dean, the Genie 3 model demonstrates the potential of generative AI video technology by enabling not only prompt-based video generation but also interactive video experiences where user actions directly influence the generated environment (source: Jeff Dean on Twitter). This breakthrough paves the way for business opportunities in gaming, virtual reality, and digital content creation by allowing users to interact dynamically with AI-created worlds. Enterprises can leverage Genie 3's capabilities to build immersive training simulations, personalized entertainment, and advanced marketing tools, signaling a shift in how generative AI can transform user engagement across industries.

According to Google DeepMind, users can now insert text prompts to alter virtual environments in real time, enabling actions such as changing the weather or introducing new characters. This breakthrough leverages advanced generative AI to create highly interactive and customizable digital worlds, unlocking significant opportunities for gaming, virtual reality, and simulation training industries. The ability to dynamically modify environments through natural language commands marks a shift towards more immersive user experiences and opens new revenue streams for AI-driven content platforms (source: Google DeepMind Twitter, August 5, 2025).