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### Introduction to Interactive Video Technology
In a world where technology continually reshapes our experiences, the London-based AI lab Odyssey is pioneering a groundbreaking approach to video content. Their latest innovation transforms standard video into immersive interactive worlds, promising to redefine not just \1 but how we engage with digital media. With a focus initially on world models for film and game production, Odyssey has unearthed the potential for a completely new medium, one where users can interact in real-time, blurring the lines between observer and participant.

### The Concept of Real-Time Interaction
Imagine watching a video where every button press or gesture influences the narrative unfolding before your eyes. Odyssey’s AI model does just that, generating \1 that responds within a staggering 40 milliseconds. Users can engage with this digital universe through various inputs—be it a keyboard, phone, or controller—creating what the Odyssey team dubs an early iteration of the “Holodeck.” According to the creators, the experience feels like exploring “a glitchy dream”—raw, unstable, yet undeniably new. While the visuals may not yet rival AAA games, the underlying technology hints at vast possibilities.

### Understanding the Technology
What sets \1’s approach apart from traditional video or gaming technologies is its innovative use of a “world model.” Unlike standard videos that present pre-rendered clips, Odyssey’s model operates frame-by-frame, predicting subsequent frames based on the current state and user interactions. This method draws parallels with large language models that forecast words in a sentence but involves far more complexity, as it concerns high-resolution video frames. As Odyssey articulates, “A world model is, at its core, an action-conditioned dynamics model.” Here, every user interaction feeds into the model, allowing it to generate the next frame based on historical data and actions.

### Overcoming Technical Challenges
Creating this technology is no small feat. One of the significant challenges in AI-generated \1 is maintaining stability through the generation process. Small errors can multiply quickly, leading to a phenomenon known as “drift.” To combat this, Odyssey has adopted a “narrow distribution model,” pre-training their AI on a broad array of video footage before fine-tuning it on specific environments. While this strategy results in less variety, it enhances stability, preventing the experience from devolving into chaos. The company is already making strides toward a next-generation model that promises richer visuals and more dynamic interactions.

### Economic Considerations
Running such advanced AI \1 in real-time comes with its costs, currently estimated between £0.80-£1.60 per user-hour, utilizing clusters of H100 GPUs across the US and EU. While these costs may seem steep compared to traditional video streaming, they represent significant savings compared to the financial burden of producing conventional game or film content. Odyssey anticipates further reductions in expenses as the models become more efficient.

### The Future of Storytelling
Throughout history, technological advancements have birthed new storytelling mediums—ranging from cave paintings to books and from photography to video games. Odyssey posits that AI-generated \1 is poised to be the next evolution in this lineage. If successful, we could witness a transformative shift in entertainment, education, advertising, and more. Picture training sessions where you can practice skills in real-time or virtual travel experiences that allow you to explore global destinations from the comfort of your home.

### Conclusion: A New Frontier
The research preview currently available is just a glimpse into this revolutionary vision; it acts more as a proof of concept than a finished product but offers an exciting preview of what could emerge as AI-generated worlds evolve into interactive playgrounds. As technology continues to advance, the potential applications are infinite, making this an exciting era for both creators and consumers alike. For those intrigued by the future of interactive technology, Odyssey invites you to explore this research preview and witness the dawn of a new \1 medium.