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- 🎮Microsoft’s AI for Xbox
🎮Microsoft’s AI for Xbox
PLUS: Rabbit’s AI Agent Demo

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Today we will discuss:
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Microsoft’s AI for game development—A new AI model that creates dynamic Xbox game worlds using player actions and visual inputs
Rabbit demos Android AI agent – A new test shows app control without the R1
In other AI news today—Apple unveils the cheaper AI-ready iPhone 16e, Spotify partners with ElevenLabs for AI-narrated audiobooks, and Fiverr lets freelancers sell AI models trained on their work
Don’t miss this week’s Workflow Wednesday—AI optimization for content, ads, and videos; now available at only $20/month!
Saved the best for last—9 must-try AI tools
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Key Points
Muse AI, trained on seven years of Xbox gameplay data, generates dynamic game environments in real-time based on player actions and visual inputs.
Microsoft sees Muse AI helping with game prototyping, enhancing classic Xbox games, and adding AI-powered experiences.
🤩News – Microsoft Research has introduced Muse, a generative AI model designed to create game environments based on visuals or player inputs.
🌟What’s special about it? Unlike traditional engines, Muse understands 3D game worlds and physics, allowing it to react dynamically to player interactions.
Muse was trained on a massive dataset from the Xbox game Bleeding Edge, thanks to a collaboration between Microsoft Research and Ninja Theory. With the equivalent of seven years’ worth of gameplay data and a billion image-action pairs, Muse has learned to generate dynamic, AI-driven gameplay. Right now, it produces visuals at 300×180 pixels—a step up from Microsoft’s earlier 128×128 resolution but still far from the 1080p standard in modern gaming.
✨Potential applications – Microsoft is exploring how Muse could help update classic games for modern hardware and assist developers in prototyping new ideas. It could also be used to introduce AI-powered experiences into existing titles.
The company is also developing some short interactive AI game demos using Muse, which will soon be available on Copilot Labs for players to try.

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Key Points
Rabbit’s new AI agent controls apps on an Android tablet but doesn’t use the R1 device at all.
The AI agent can find videos, save grocery lists, and play 2048, but its performance is slow and inconsistent.
👨💻News - Rabbit has shared a new blog post and video demonstrating its “generalist Android agent” in action. The AI system can control apps on a tablet—something Rabbit originally promised for its R1 device over a year ago but never delivered. This latest work builds on LAM Playground, a generalist web agent the company introduced last year.
🕵️♂️What’s new? Unlike previous demos, Rabbit’s engineers didn’t use the R1 at all. Instead, they typed requests into a prompt box on a laptop, which then translated them into actions on an Android tablet. The AI agent was tasked with finding a YouTube video, locating a whiskey cocktail recipe, and adding ingredients to a Google Keep grocery list. It also downloaded the puzzle game 2048 and attempted to play it, though at a noticeably slow pace. While the system generally completed the tasks, it wasn’t without quirks—such as sending a poem over WhatsApp one line at a time instead of as a single message.
🤖In conclusion - Rabbit’s AI agent is still a work in progress, much like the R1 itself. According to Rabbit, today’s demo represents only the “core action loop” of its Android agent, with more details on its “cross-platform multi-agent system” expected in the coming weeks.
🙆🏻♀️What else is happening?
Apple unveils cheaper iPhone 16e powerful enough to run AI // The device can access features like image generation and notification summaries
Spotify is making it easier to release audiobooks narrated by AI // A new ElevenLabs partnership aims to help authors bring AI-narrated audiobooks to Spotify listeners
Fiverr wants freelancers to create AI models // Fiverr will now let freelancers sell access to AI models trained on their work
In this week’s Workflow Wednesday we provided AI workflows for the tasks our readers needed help with, have a question you want answered? Join here
This week’s theme was AI Optimization, where we covered the topics:
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Krikey AI - A tool that allows users to create high-quality 3D animations from text prompts or video uploads
STORI AI - An AI-powered platform designed to streamline brand building and content creation for startups
Fronty - An AI-powered webpage design to code converting service that allows users to upload a screenshot of their webpage design and generate HTML/CSS code from it
DomainOwl - An AI-powered domain name generator that helps you find unique, SEO-friendly, and available domain names for your business, event, or idea
QuizTarget - An AI-powered tool that allows you to create quizzes, surveys, and polls with interactive video and lead generation technology
Movie Uncover - A tool that allows movie enthusiasts to quickly discover films and series by simply describing the plot or key elements
Pawtrait Studio - An app that uses AI technology to transform pet photos into human portraits and humans into pet-like figures

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