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Runway is launching a new platform called "Game Worlds" next week, letting users create text-based adventure games using written input and AI-generated images. The company plans to slowly expand the platform's features. CEO Cristóbal Valenzuela says Runway is in talks with game companies to use their data for training AI models and to explore ways to apply its technology in game development. Valenzuela also notes that game developers are currently adopting AI faster than film studios. Game Worlds is available at play.runwayml.com.

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Shopify CEO Tobi Lütke and former Tesla and OpenAI researcher Andrej Karpathy say "context engineering" is more useful than prompt engineering when working with large language models. Lütke calls it a "core skill," while Karpathy describes it as the "delicate art and science of filling the context window with just the right information for the next step."

Too little or of the wrong form and the LLM doesn't have the right context for optimal performance. Too much or too irrelevant and the LLM costs might go up and performance might come down. Doing this well is highly non-trivial.

Andrej Karpathy

This matters even with large context windows, as model performance drops with overly long and noisy inputs.

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The Trump administration is preparing a series of executive orders aimed at accelerating the expansion of AI data centers in the United States, according to Reuters. The plan focuses on lowering barriers to power grid access and making federal land available for new facilities, addressing the rising electricity demand driven by AI applications. A formal action plan is expected to be unveiled on July 23. Faster permitting based on nationwide water rights framework is also under consideration. Critics warn that the U.S. power grid is already overburdened, with lengthy wait times for new energy projects. Earlier in his term, Trump declared an energy emergency and threw his support behind the Stargate Project with OpenAI, Oracle, and SoftBank. He is scheduled to speak at an AI event in Pennsylvania on July 15.

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According to the New York Times, Meta considered sidelining its own open-source AI model, Llama, in favor of external commercial systems like those offered by OpenAI or Anthropic. CEO Mark Zuckerberg reportedly raised concerns about falling behind in the AI race. After disappointing feedback on Meta's AI in April, Zuckerberg replaced key executives, invested $14.3 billion in the startup Scale AI, and recruited several researchers from OpenAI. Internal dissatisfaction is also growing, with some developers already leaving the company. Meta is currently building a superintelligence lab and is in talks with additional experts. Despite these moves, Llama's development is set to continue, with multiple releases still planned for this year.

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