Microsoft Research has created Muse, a first-of-its-kind generative AI model that can generate a game environment based on visuals or players’ controller actions. It understands a 3D game world and game physics and can react to how players interact with a game.

Microsoft announces new generative AI model that can understand game physics and controller actions, and potentially preserve classic games.

Microsoft views the Muse AI model more as a tool for game preservation and concept brainstorming than a way to replace human-made video games.