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VERSES AI Artificial Intelligence for the Physical World

VERSES AI’s “digital brain” AXIOM, plus recently approved protocols for AI, IoT, and robotics, could deliver AI for the physical world.

VERSES AI Artificial Intelligence for the Physical World

Published: August 9, 2025 | Published By: Real Creative Agency

Full disclosure: I’m an advisor to VERSES and have been sharing their story since February 2023. My role is to help educate the public about this emerging space and the technology VERSES is building.

I often point out that VERSES is a small, publicly traded company going up against some of the biggest names in tech. That creates an uneven playing field. Shareholders need transparency, but too much disclosure could expose a strategic advantage that VERSES can’t afford to lose.

Even with those constraints, the company has reached several key milestones in the past 90 days, many of which have been years in the making. To me, that speaks to the team’s long-term vision and ability to deliver.

I first discovered VERSES in 2022 through the best-selling book The Spatial Web,” written by the company’s co-founders. (I STRONGLY encourage you to pick up a copy at Amazon link)

Spatial Web Book by Gabriel Rene Dan Mapes

The Spatial Web…Things & Places become the New “Web Pages”

The idea of a “new web” that integrates the physical and digital worlds instantly grabbed my attention.

I believe the first wave of the web took off because of a perfect mix of innovations. Windows 95 made PCs usable for everyday people. HTML emerged as a universal standard, which allowed businesses to build their own websites instead of being confined to AOL.

Netscape gave us the first real browser that could read HTML, and faster internet speeds made everything feel more fluid and connected.

Technically, Mosaic was the first browser, but the first one sold to the public was Netscape…yes, back then, software was sold in a package.

Imagine a web layered over the physical world. Cars, buildings, robots, sensors, and locations become the new “web pages, creating an intelligent grid on top of the old information highway.

The Spatial Web is expected to be even bigger.

That could scale the web from about 1 billion pages to hundreds of billions, or even trillions, driven by machines, and not just humans. Instead of people clicking links, these devices would generate data and take action autonomously.

The VERSES founders outlined this vision in “The Spatial Web.” in 2019, the same year Microsoft made its first investment in OpenAI to pursue AGI.

They (VERSES co-founders) argued that this new kind of web would need entirely new protocols, because HTML and HTTP weren’t built for 3D or 4D environments. They also predicted that intelligent agents would replace apps and that a new kind of operating system would be needed to run them.

It’s interesting that the term “agent” didn’t gain industry traction until five years later.

 

Physical World Needs New Web Protocols

PCs and phones are designed for humans to operate, but machines that move, such as cars, drones, and robots, must be able to perceive and make sense of the physical world independently.

To achieve this, they will require human-like intelligence and a new type of operating system designed to work with emerging 3D and 4D protocols.

The co-founders of VERSES predicted this shift years ago in their book, The Spatial Web.

Through their nonprofit, the Spatial Web Foundation, they went on to create two key protocols that enable machines to interact with the real world: HSML (Hyperspatial Modeling Language) and HSTP (Hyperspatial Transaction Protocol).

 

A Neuroscience Approach to Artificial Intelligence

Back in 2018, VERSES’s Chief Scientist Karl Friston was already gaining attention for his neuroscience-based approach to AI. source

 

Karl Friston Free Energy Principle Active Inference

In the summer of 2024, VERSES launched the beta version of Genius, a platform designed around that very concept. 

 

Gartner Highlights VERSES in AI Hype Cycle

Soon after, Gartner highlighted VERSES in its AI Hype Cycle, signaling industry recognition for their neuroscience vs computer science approach to AI.

While most of the AI world was focused on chatbots and digital agents, VERSES stayed focused on something larger: AI for the physical world.

When Sam Altman, CEO of OpenAI, claimed the new version of ChatGPT could “reason,” VERSES showed that Genius could reason too, with far less data and power, and at a faster pace, during the Mastermind Challenge. source

 

VERSES AI beats OpenAI in Mastermind Challenge
They followed that up by outperforming DeepSeek using the same game.

Some said Mastermind wasn’t a true benchmark and pointed instead to Atari games. But the Atari games are flat and digital. They don’t test intelligence in real-world environments.

VERSES did the Atari Challenge anyway, but set a higher bar.

Instead of using the industry standard 100,000 steps, they committed to just 10,000. That means they could master a game in minutes instead of hours.

The results were clear: VERSES achieved human-level play with just 3 games in just 2 hours. The top competitor, even after 2 days of training, still fell short.

Verses ai Atari Challenge

VERSES Unveils AXIOM, a “Digital Brain

Just a month later, they unveiled AXIOM, a digital brain architecture designed to learn in real-time and understand the physical world.

Karl Friston, VERSES Chief Scientist explains AXIOM, an AI Breakthrough.

 

Because the current Atari games didn’t have rules for gravity, inertia, and cause/effect, VERSES created a new benchmark called “Gameworld 10K.”, games that simulated these physical world challenges.

AXIOM outperformed Google DeepMind’s top model in these simulations, and it did so quickly, using far less data. It demonstrated its ability to learn in environments that mimic real-world conditions.

VERSES AI AXIOM beats Google Deepmind in Gameworld 10k

In short, AXIOM is software that can think and update itself.

The industry took notice. AXIOM was featured in:

WIRED  called it adeep learning alternative”

Popular Mechanicssaid AXIOM  could “redefine intelligence forever”

Psychology Today said “machine intelligence that actually thinks”

Artificial Intelligence Made Simple, said “A tiny startup is beting OpenAi by redefining intelligence”

They received public recognition from François Chollet, creator of the ARC-AGI benchmark.

Denis O gave a great summary on LinkedIn

IEEE Approves Spatial Web Protocols

In June 2025, the IEEE officially approved the Spatial Web protocols, HSML and HSTP, for use in AI, IoT, and robotics.

For those who recall the early days of the internet, this moment is reminiscent of when TCP/IP was adopted

As Bastiaan den Braber from the Spatial Web Foundation put it, these protocols are “akin to TCP/IP” for the Internet of Everything, much like HTML and HTTP were for the old web.

Want to see what that can look like? 

Here Comes the World Wide Web of Everything

Gartner has again recognized VERSES in its AI Hype Cycle, this time for both AI and Spatial Computing.

Earlier this year, VERSES unveiled another significant advancement: an AI model that can learn and remember.

It overcame the issue of forgetting old knowledge when learning something new, a long-standing challenge in AI.

You can watch the recent Corporate Update here:

To Sum It All Up

Bilal Zuberi from Red Glass, a new early-stage VC fund at the intersection of AI and the physical world, explains that the real $10 trillion opportunity lies in “AI × physical world”, “where intelligence meets machines operating in the real world.”

By contrast, Generative AI (GenAI), the AI we encounter daily (ChatGPT), resides in the digital world.

Even when it ingests data from the physical domain, it expects the digital layer to draw the “right” conclusions and then leap back into physical outcomes.

That back-and-forth doesn’t scale, and it is inaccurate; intelligence anchored directly in the physical world is the actual inflection point.

This gap between digital‑only AI and AI that natively understands and operates in the physical world creates an open, underexplored market with massive potential.

There’s a concept called red ocean vs. blue ocean.

A red ocean is crowded with competitors. A blue ocean is a vast, unexplored space where new demand is created, rendering competition largely irrelevant.

VERSES has the potential to make big moves in this blue ocean: AI for machines, places, and real-world data. And with the Spatial Web protocols now officially approved, the path is open.

Why is it a blue ocean?

Because today’s robots are glorified chatbots, they require massive training, can’t learn on their own, have limited memory, and don’t understand the physical world.

Now, with AXIOM, the HSML, and the HSTP protocols in place, companies and cities can finally begin building “web pages” for their machines and environments.

Six years ago, the co-founders of VERSES published a book called The Spatial Web, the same year 5G rolled out, unlocking faster data speeds. 

While waiting for the Spatial Web protocols to be approved, VERSES built (and validated with benchmarks) a digital brain designed to power this next evolution of the internet.

In just the last 60 days, the protocols that define the Spatial Web were officially approved, and VERSES demonstrated that its digital brain can offer human-like intelligence to these machines.

These are exciting times.

Artificial Intelligence Stocks
Spatial Web Book by Gabriel Rene Dan Mapes

Disclaimer

This communication is a paid advertisement for Verses AI Inc. to enhance public awareness of the Company, its products, its industry and as a potential investment opportunity. This communication is not intended as, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. “
This communication is a paid advertisement for Verses AI Inc. (the “Company”) to enhance public awareness of the Company, its products, its industry and as a potential investment opportunity.  Real Creative Agency, and their owners, managers, employees, and assigns were paid by the Company to create, produce and distribute this advertisement.  This compensation should be viewed as a major conflict for this presentation to be unbiased.
This communication is not intended as, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Company purport to provide a complete analysis of the Company or its financial position. The Company is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the Company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the profiled Company’s SEDAR+ and/or other government filings. Investing in securities is speculative and carries a high degree of risk.

This information is for educational purposes only, it is NOT investment advice. It is published as an information service for highly speculative investors, and it includes opinions on buying, selling, and holding various stocks and other securities. VERSES AI Inc is an extremely high-risk investment, and it is HIGHLY LIKELY you can LOSE YOUR ENTIRE INVESTMENT. Investors should consult with their financial advisor BEFORE making ANY investment.

Prospective investors should carefully consider and evaluate all risks and uncertainties involved in an investment in this Company, including risks related to the Company’s limited operating history, the Company’s need for additional funding, the Company’s ability to successfully implement its growth strategy, conflicts of interest, the uncertainty of the use of available funds, the Company’s failure to manage growth, and reliance on strategic partnerships.

The information provided is obtained from sources believed to be reliable but is not guaranteed for accuracy or completeness. Any persons who buy, sell, or hold securities should do so with caution and consult with a broker or investment adviser before doing so.

Any discussions and pages may contain forward-looking statements that involve risks and uncertainties. A company’s results could differ materially from those in forward-looking statements or announcements.

All material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities.

At various times, we may own, buy or sell the securities discussed for investment or trading purposes. We (publishers, owners, and agents) are not liable for any losses or damages, monetary or otherwise, that result from the content shared.

Scott Shaffer is compensated by VERSES AI Inc (the “Company”) for publicizing information about the Company and its products.

The payment was made through both (i) a $50,000 signing bonus from the Company and (ii) the payment of cash compensation in the amount of $7500.00 per month for a period of 6 months starting February 2023.

As of April 14, 2023,  the Company had (i) issued $50,000 and (ii) paid an aggregate of $15,000.00  in cash compensation for such services by Scott Shaffer.  On April 17, 2023, The Company extended the contract for an additional 6 months and cash compensation was increased to $10,000 per month. Additional cash payments may have accrued since then

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