Mirage 2 by Dynamic Labs. Competition for Genie 3? – AI News – #4 August 2025

Remember how recently we marveled at Genie 3 from Google DeepMind? The vision of interactive worlds generated from text, a step toward AGI, sparked the imagination of us all. Tech giants keep pushing the boundaries of what’s possible, armed with nearly unlimited resources. But the history of innovation teaches us that revolutions often begin in garages and small, agile teams. And that’s exactly the kind of revolution I want to tell you about today.

While we’re still waiting for access to Google’s Genie, a team of fewer than 10 people — Dynamics Lab — has just released something that might shake up the industry. It’s called Mirage 2, a generative world engine that not only matches some capabilities of the giants but in key aspects surpasses them. The most important one? You can try it out. Now. In your browser.

Forget for a moment about passively watching generated videos. Mirage 2 is something the creators call a Generative World Engine. In practice, it is the world’s first AI-native UGC (User-Generated Content) game engine that operates in real time.

This is not just a tech demo to admire; these are playable worlds being created before our eyes and responding to our commands. Most importantly, all the magic happens in the cloud, and all we need is a web browser. It’s a democratization of access to technology that just a month ago seemed to be the domain of only the largest research labs in the world.

What sets Mirage 2 apart is placing user creativity at the absolute center. The model is not just an executor of commands; it is a partner in the creative process.

One of the most astonishing features is the ability to upload your own image and transform it into a playable environment. It can be a child’s crayon drawing, professional concept art for a game, or even a photograph of a famous painting. Dynamics Lab has released demos where you can run around a world inspired by Van Gogh’s “Starry Night” or a Parisian street from a classic painting.

Think of the implications: every artist, every designer, even every child with crayons in hand, can become a creator of interactive worlds. The barrier to entry for game creation has just drastically lowered. From now on, all you need is imagination and a picture.

In Genie 3, the user can change the world through prompts. Mirage 2 takes this idea to a whole new level of interactivity. We can literally chat with the world during gameplay. Starting out in the Wild West, but suddenly craving a different atmosphere? Just type into the console “change to cyberpunk city” and the world transforms before your eyes.

The creators call this “generative play” (generative play) — a concept where the player and AI jointly create and modify the experience in real time. Want trees to appear? Here you go. Or maybe a playground? Just write it. It’s like having an all-powerful game master on hand who fulfills your whims before you even think of them.

Comparing Mirage 2, the work of a small team, with Genie 3 from the powerful Google DeepMind is fascinating and illustrates how dynamic AI development is.

And here we come to the essence. While Google shows us the future, Dynamics Lab puts it in our hands. Mirage 2 is faster, offers more complex interaction (run, jump, even attack), and can run stably for up to 10 minutes. All achieved by a team you can count on two hands. This shows that innovation is not just about scale, but bold ideas and rapid execution.

Moreover, worlds created in Mirage 2 can be shared with friends via a link, opening the door to a completely new dimension of AI-based social gaming.

Mirage 2 is not just about creative features but also solid engineering. In just one month since the release of Mirage 1, the team made architectural breakthroughs that reduced latency and increased control responsiveness.

The creators honestly admit their technology is not perfect yet. Character control can be imprecise, and sudden scene changes may lead to visual inconsistencies. However, these challenges are viewed as an exciting field for further research. Such transparent approach builds trust and shows the project’s maturity.

Mirage 2 is more than a tech curiosity. It is a preview of a future where games are not static products but living, evolving worlds co-created by players and artificial intelligence. The incredible development pace — from Mirage 1 to Mirage 2 in just one month — suggests we are only at the beginning of this journey.

The best part is you don’t have to take my word for it. You can become explorers and creators yourselves. Visit the Dynamics Lab demo site and see what the future of interactive entertainment looks like. Google may have its powerful genie in a bottle, but Mirage 2 already lets us play with magic. And that is the most beautiful part of this story. What’s next? Follow AI development progress with us and subscribe to the Delante newsletter!

Source of information about Mirage 2: https://www.mirage2.org/