My conversation with Edward Saatchi (CEO, Fable Simulation) is about his vision for virtual beings: digital characters that not only have conversations, but act within virtual worlds: living, playing, creating and forming communities. We covered the birth of all the new art forms and media resulting from generative AI, agent AIs, conversational vs. action-oriented characters, the integration of virtual beings into live games and immersive experiences, and inspiration from science-fiction such as the Culture series and the Holodeck from Star Trek.