Decart and Etched have developed a unique version of Minecraft that features real-time content generation, allowing players to experience unexpected transformations in the game environment due to AI "hallucinations." This innovation is powered by a model called Oasis, trained on extensive Minecraft gameplay data, enabling the AI to understand game mechanics without traditional coding. The current demo has limitations such as low resolution and short play sessions, but the companies are optimistic about future enhancements through advancements in chip design. Etched is working on a new chip that aims to improve performance by tenfold, which could lead to longer gameplay, fewer hallucinations, and better resolution. This chip is designed specifically for AI applications, focusing on inference rather than training. Despite skepticism about achieving the projected performance gains, Decart and Etched envision the potential for creating real-time virtual assistants like doctors or tutors. A demo of their AI-generated Minecraft experience is available for public exploration.