PAN 2

MBZUAI's Institute of Foundation Models released PAN 2, an open foundation world model for physical intelligence built around simulative reasoning that lets agents play out outcomes before acting. It splits reasoning into two tracks: an LLM determines what happens, when, and how the camera moves and writes it as text, while a 29B diffusion model trained from scratch renders that text into visuals. Ablating the LLM collapses multi-step performance to 8.7% correct steps with no completed plans, whereas the combined system reaches 75.1% correct steps and 34.0% fully completed plans.