3D text models could impact video game development, UGC and in-game ads

Breakthroughs in artificial intelligence in the field of moving images have multiplied in recent months.

Competition between open source and private models has been key to the rapid progress of AI in recent timesARK Invest Research Associate Andrew Kim wrote in an October 10 newsletter.

Google Research and UC Berkeley recently published research on their new 3D text model, DreamFusion, on the same day Meta released Make-A-Video. DreamFusion’s text-to-3D uses Imagen as a pre-trained text-to-image model in conjunction with another 3D model called Neural Radiance Field, or NeRF. The model generates 2D images from different angles, allowing the construction of 3D assets that computer graphics software like Blender or Unity can support, Kim wrote.

“In our opinion, 3D text models could have a profound impact on video game development, user-generated content, and in-game advertising,” Kim wrote. “Based on our preliminary estimates, global gaming software and services revenues could approach $200 billion, with video game development costs exceeding $100 billion in 2022.”

Kim said the commercialization of 3D text models is likely to disrupt the company’s predictions: AI models could significantly reduce video game design and development costs while the adoption of computer-generated content the user (UGC) lowers the barriers to entry. More mainstream brands are likely to experiment with immersive advertising in games, like those that have advertised on Roblox in recent years, Kim said.

“Additionally, digital advertising dollars are likely to flow into video games at an accelerated rate if 3D text models evolve into producing complete virtual environments that can host cost-effective, immersive in-game advertising. and programmatic,” Kim wrote. .

Investors looking to gain exposure to the lucrative AI industry should consider the ARK Autonomous and Robotic Technology ETF (ARKQ).

Companies within ARKQ focus on the development of new products or services, technological improvements and advances in scientific research related to, among others, energy, automation and manufacturing, materials, to artificial intelligence and transport, and stand to benefit considerably.

For more news, insights and strategy visit the Disruptive Technology Channel.
Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.