For the past two years, artificial intelligence has felt oddly flat.
Large language models spread at unprecedented speed, but they also erased much of the competitive gradient. Everyone has access to the same models, the same interfaces, and, increasingly, the same answers. What initially looked like a technological revolution quickly started to resemble a utility: powerful, impressive, and largely interchangeable, a dynamic already visible in the rapid commoditization of foundation models across providers like OpenAI, Google, Anthropic, and Meta.
That flattening is not an accident. LLMs are extraordinarily good at one thing—learning from text—but structurally incapable of another: understanding how the real world behaves. They do not model causality, they do not learn from physical or operational feedback, and they do not build internal representations of environments, important limitations that even their most prominent proponents now openly acknowledge.
They predict words, not consequences, a distinction that becomes painfully obvious the moment these systems are asked to operate outside purely linguistic domains.
The false choice holding AI strategy back
Much of today’s AI strategy is trapped in binary thinking. Either companies “rent intelligence” from generic models, or they attempt to build everything themselves: proprietary infrastructure, bespoke compute stacks, and custom AI pipelines that mimic hyperscalers.
That framing is both unrealistic and historically illiterate.
- Most companies did not become competitive by building their own databases.
- They did not write their own operating systems.
- They did not construct hyperscale data centers to extract value from analytics.
Instead, they adopted shared platforms and built highly customized systems on top of them, systems that reflected their specific processes, constraints, and incentives.
AI will follow the same path.
World models are not infrastructure projects
World models, systems that learn how environments behave, incorporate feedback, and enable prediction and planning, have a long intellectual history in AI research.
More recently, they have reemerged as a central research direction precisely because LLMs plateau when faced with reality, causality, and time.
They are often described as if they required vertical integration at every layer. That assumption is wrong.
Most companies will not build bespoke data centers or proprietary compute stacks to run world models. Expecting them to do so repeats the same mistake seen in earlier “AI-first” or “cloud-native” narratives, where infrastructure ambition was confused with strategic necessity.
What will actually happen is more subtle and more powerful: World models will become a new abstraction layer in the enterprise stack, built on top of shared platforms in the same way databases, ERPs, and cloud analytics are today.
The infrastructure will be common. The understanding will not.
Why platforms will make world models ubiquitous
Just as cloud platforms democratized access to large-scale computation, emerging AI platforms will make world modeling accessible without requiring companies to reinvent the stack. They will handle simulation engines, training pipelines, integration with sensors and systems, and the heavy computational lifting—exactly the direction already visible in reinforcement learning, robotics, and industrial AI platforms.
This does not commoditize world models. It does the opposite.
When the platform layer is shared, differentiation moves upward. Companies compete not on who owns the hardware, but on how well their models reflect reality: which variables they include, how they encode constraints, how feedback loops are designed, and how quickly predictions are corrected when the world disagrees.
Two companies can run on the same platform and still operate with radically different levels of understanding.
From linguistic intelligence to operational intelligence
LLMs flattened AI adoption because they made linguistic intelligence universal. But purely text-trained systems lack deeper contextual grounding, causal reasoning, and temporal understanding, limitations well documented in foundation-model research. World models will unflatten it again by reintroducing context, causality, and time, the very properties missing from purely text-trained systems.
In logistics, for example, the advantage will not come from asking a chatbot about supply chain optimization. It will come from a model that understands how delays propagate, how inventory decisions interact with demand variability, and how small changes ripple through the system over weeks or months.
Where competitive advantage will actually live
The real differentiation will be epistemic, not infrastructural.
It will come from how disciplined a company is about data quality, how rigorously it closes feedback loops between prediction and outcome (Remember this sentence: Feedback is all you need), and how well organizational incentives align with learning rather than narrative convenience. World models reward companies that are willing to be corrected by reality, and punish those that are not.
Platforms will matter enormously. But platforms only standardize capability, not knowledge. Shared infrastructure does not produce shared understanding: Two companies can run on the same cloud, use the same AI platform, even deploy the same underlying techniques, and still end up with radically different outcomes, because understanding is not embedded in the infrastructure. It emerges from how a company models its own reality.
Understanding lives higher up the stack, in choices that platforms cannot make for you: which variables matter, which trade-offs are real, which constraints are binding, what counts as success, how feedback is incorporated, and how errors are corrected. A platform can let you build a world model, but it cannot tell you what your world actually is.
Think of it this way: Every company using SAP does not have the same operational insight. Every company running on AWS does not have the same analytical sophistication. The infrastructure is shared; the mental model is not. The same will be true for world models.
Platforms make world models possible. Understanding makes them valuable.
The next enterprise AI stack
In the next phase of AI, competitive advantage will not come from building proprietary infrastructure. It will come from building better models of reality on top of platforms that make world modeling ubiquitous.
That is a far more demanding challenge than buying computing power. And it is one that no amount of prompt engineering will be able to solve.
