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The First Year of World Models: When AI's Supply-Side Revolution Moves from Generation to Understanding the Physical World

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BEIJING, Aug. 14, 2026 /PRNewswire/ — Over the past two years, the core proposition of the AI industry has been "generation" – generating text, images, video, and music. But on July 19, 2026, at the World Artificial Intelligence Conference (WAIC), Fang Han, Chairman and CEO of Kunlun Tech (Parent company of Skywork AI), formally declared 2026 as "the first year of world models," marking a pivotal transition in which AI evolves from content generation toward understanding and interacting with the physical world. This is not a marketing slogan. It signals that the supply-side revolution has entered its second phase: AI is…

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