World Labs, an AI startup co-founded by Fei-Fei Li, has launched with over $230 million in funding, valuing the company at over $1 billion. The firm aims to develop 'Large World Models' (LWMs), which are AI systems capable of perceiving, generating, and interacting with 3D worlds. These models seek to advance beyond current generative AI, which is limited to 2D interactions, by incorporating spatial intelligence that mimics human understanding of the three-dimensional world. The funding round was led by Andreessen Horowitz, NEA, and Radical Ventures, with contributions from notable investors such as Marc Benioff, Ashton Kutcher, and Nvidia's NVentures. The technology has potential applications in robotics, virtual reality, design, and various other domains. Fei-Fei Li, often referred to as the 'Godmother of AI,' brings significant expertise and credibility to the venture.