Microsoft ($MSFT) has unveiled a powerful generative AI model that creates video game visuals, controller actions, or both. The company’s first-of-its-kind World and Human Action Model (WHAM), called “Muse,” was developed in partnership with Ninja Theory, a studio within Microsoft’s Xbox Game Studios. The Muse model could help game studios save huge costs by reducing reliance on human programming and animation.
What is the WHAM Model?
Microsoft’s WHAM is a type of AI foundation model that already includes language models. Similar to Nvidia’s ($NVDA) Cosmos, launched in January, both models play a key role in developing AI that can interact with various environments.
Currently, Microsoft is sharing AI model data and tools for developers to explore. They can experiment with WHAM models using the WHAM Demonstrator on Azure AI Foundry, a platform for building AI applications. Notably, WHAM Demonstrator is a prototype tool with a visual interface that lets developers interact with and test WHAM AI models.
Microsoft’s WHAM Set to Revolutionize Gaming
Amid rising development costs and cautious consumer spending, AI adoption is rapidly growing in the gaming industry. Microsoft’s application of the WHAM model promises to enhance gaming experiences for both players and developers. Additionally, Microsoft’s entry into this space could significantly influence how future games are created and potentially lead to more diverse and creative gaming experiences.
At this stage, Microsoft is using Muse to build a real-time AI model trained on first-party games. Meanwhile, the company’s Xbox team is keen to leverage AI to cut the huge budgets typically spent on blockbuster games. However, this move is also stirring controversy: gamers worry that generative AI might compromise game quality, and studio employees, already impacted by layoffs, fear it could lead to even more job cuts.
Is Microsoft a good stock to buy?
Wall Street analysts are highly bullish on MSFT stock, rating it a Strong Buy. TipRanks shows 29 Buy and three Hold recommendations, with a share price target of $510.38, implying a 23.05% increase from its current level.
