
Microsoft (MSFT) has introduced an innovative generative AI model designed to produce video game visuals, controller mechanics, or both. Dubbed the World and Human Action Model (WHAM) and nicknamed “Muse,” this groundbreaking model was created in collaboration with Ninja Theory, a studio under Microsoft’s Xbox Game Studios. The Muse model has the potential to significantly lower costs for game developers by minimizing their dependence on traditional programming and animation processes.
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What is the WHAM Model?
The WHAM model from Microsoft represents a category of AI foundation models that incorporate advanced language capabilities. In a way similar to Nvidia’s (NVDA) Cosmos, which debuted in January, both models are instrumental in crafting AI that can seamlessly engage with various environments.
Microsoft is currently providing access to AI model data and resources for developers to experiment with. They can utilize the WHAM models through the WHAM Demonstrator on Azure AI Foundry—a specialized platform for creating AI applications. It’s important to note that the WHAM Demonstrator serves as a prototype tool featuring a visual interface that enables developers to explore and assess WHAM AI models.
Transforming the Gaming Landscape with WHAM
As development expenditures continue to rise and consumers become more cautious with their spending, the gaming industry is rapidly embracing AI technologies. Microsoft’s WHAM model application stands to elevate the gaming experience for both enthusiasts and developers alike. By venturing into this domain, Microsoft could significantly reshape the future landscape of game development, fostering a wider range of innovative and creative gaming experiences.
At present, Microsoft is leveraging Muse to craft a real-time AI model that is informed by first-party games. Meanwhile, the Xbox team is eager to utilize AI to help cut down the enormous budgets typically associated with blockbuster titles. However, this initiative has sparked some controversy; gamers are concerned that generative AI may compromise game quality, and some studio employees, already facing layoffs, fear it could result in further job reductions.
Is Microsoft Stock a Smart Investment?
Market analysts are overwhelmingly optimistic about MSFT stock, categorizing it as a Strong Buy. According to TipRanks, there are 29 Buy ratings and three Hold recommendations, with a projected price target of $510.38, indicating a potential 23.05% increase from its current market price.

