A groundbreaking Harvard study trained AI on 10 million solar systems and found it perfectly predicted orbits but completely failed to understand gravity, raising questions about whether LLMs can develop true world models. While companies pour billions into scaling, Meta's Yann LeCun believes current systems will be "obsolete within 3-5 years" and argues that world models could revolutionize AI by giving machines genuine understanding of physical reality. This explores three competing paths to AGI, why Google DeepMind is hiring world model teams, and whether we're looking at the missing piece for human-level AI.

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