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Welcome to VP Land! We've got a new interview with Freepik's CEO, Joaquin Cuenca Abela, who pulled back the curtain on the company's remarkable transformation into an AI-powered creative giant and where he sees creative tools going in the future.

Our last poll showed a tie between those expecting physics-aware AI video models to impact creative media now and those predicting it within 1 to 2 years. Check out today’s poll below.

In today's edition:

  • Freepik CEO details massive AI pivot and growth strategy

  • Tencent unveils real-time interactive video generation

  • New Meta prototype headsets at SIGGRAPH

  • Mysterious Nano Banana AI image editor sparks speculation

Freepik CEO on ditching AI credits (and more)

Freepik CEO Joaquin Cuenca Abela reveals how the platform transformed from a stock image search engine into an AI powerhouse. The company now generates 3 million AI images and 200,000 videos daily while taking bold moves like eliminating credits for premium subscribers.

The AI Pivot That Changed Everything

  • Cuenca panicked when DALL-E 2 launched in 2022, realizing it would make Freepik's entire stock image business obsolete within years.

  • The company quickly integrated Stability's open-source models as a starting point, then built custom interfaces and workflows on top.

  • They recently eliminated the credit system entirely for Premium Plus and Pro subscribers, offering unlimited image generation after calculating worst-case scenario costs.

Platform Strategy Over Model Marketplace

  • Cuenca rejects viewing Freepik as just a "marketplace of models," instead positioning the UI and user experience as the real product.

  • The team carefully tests and filters which AI models make it onto the platform, only adding ones that excel in specific areas like anime or particular visual styles.

  • They're building toward a conversational interface where users describe what they want without needing to select specific models.

Where AI Creative Tools Are Heading

  • Cuenca sees a split emerging between end-to-end AI creation for measurable campaigns like marketing and precision tools for creative projects like films where you "have one shot to be good."

  • The platform's fastest-growing user segments are marketing professionals, Hollywood VFX artists, and product placement teams, replacing expensive photo shoots.

  • Watch the full interview for deeper insights on legal challenges, output moderation, and Freepik's expansion into project management features.

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Tencent's Yan Heats Up World Model Race

The world model wars are heating up after last week's Genie 3 release. A new contender called Yan from Tencent splits interactive video generation into three specialized modules that each tackle different parts of creating playable, AI-generated content.

  • Yan-Sim delivers high-fidelity simulation of interactive game videos at 1080p resolution and real-time 60fps performance using a diffusion model adapted into a causal architecture.

  • Yan-Gen enables versatile generation of diverse interactive video content from text, visual, and action-based controls using a multimodal diffusion transformer backbone.

  • Yan-Edit supports multi-granularity video content editing through text-based interaction, handling both structural changes like adding objects and style changes like altering colors and textures.

  • The modular design lets you improve or swap each component independently, making Yan a general-purpose backbone for different world modeling tasks across game genres and edit the world as you're in it.

Also announced in the world model space: Matrix-Game 2.0 from Skywork AI, an open-source, AI world model running at 25 fps.

Meta Shows Future VR Prototypes

Meta's Reality Labs debited two experimental VR headsets at SIGGRAPH 2025 that push opposite extremes of what's possible today. The Tiramisu and Boba 3 prototypes demonstrate breakthrough advances in display quality and field of view as Meta works toward making VR visually indistinguishable from reality.

  • Tiramisu delivers 90 pixels per degree resolution (3.6x sharper than Quest 3) with 1,400 nits brightness and HDR-like contrast, but sacrifices field of view to just 33° x 33°.

  • Boba 3 flips the script with a massive 180° horizontal field of view that covers 90% of human vision, compared to Quest 3's 46% coverage.

  • Both prototypes use existing consumer components where possible but remain bulky research devices that require high-end PCs to run.

  • The demos run real-time Unreal Engine 5 graphics with NVIDIA DLSS to handle the massive performance demands of either ultra-high resolution or ultra-wide rendering.

  • Meta calls this progress toward the "visual Turing test" where you can't tell VR from reality, though neither prototype solves all the technical challenges simultaneously.

The Mysterious Nano Banana Image Model

A mysterious AI image model called "nano banana" has quietly appeared on LMarena and is showing impressive results for text-based image editing, sparking speculation about whether Google is behind the anonymous release. The model lets you describe changes to images in plain English and applies those edits with remarkable accuracy.

Check out this test run to get another perspective on a person from a single image:

  • The model excels at natural language editing where you can modify photos by typing instructions like "change the person's facial expression" or "adjust the background lighting."

  • Early testers report getting clean, professional results on their first try, with the model maintaining character consistency and preserving the original image's overall scene context.

  • AI researchers speculate it could be Google's latest image model based on its sophisticated performance, though Google hasn't confirmed any connection to nano banana.

  • You can test the model yourself through LMarena, where it's being compared head-to-head against other AI image tools.

TechAltar visits CREAL in Switzerland to see light field displays in AR headsets, smart glasses, and a vision care system that can determine your glasses prescription.

Stories, projects, and links that caught our attention from around the web:

🤖 Actor Thomas Middleditch (from Silicon Valley) has launched a new YouTube channel called Improv with Robots, where he improvises using AI in voice mode and applies motion capture to 3D characters in Unreal Engine 5.  

💰 Perplexity has made a $34.5 billion offer to acquire Google Chrome.  

👩🏻‍💻 Autodesk has introduced Autodesk Flow Studio freemium access (FKA Wonder Studios), allowing creators to use its advanced VFX AI tools at no initial cost.

🧠 Google Gemini introduces a conversation memory setting that allows the AI to remember user details and preferences from previous chats for more personalized interactions.  

🎨 Colorist Tobia Montanari Lughi vibe coded a fun color grading game called Match the Grade

🚀 Workflow automation company fal has launched Workflows 2.0, a node-based system to build custom AI workflows using any of their API models.

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