As artificial intelligence develops more human-like reasoning abilities, researchers are uncovering how these systems actually think and make decisions. This breakthrough coincides with revolutionary changes in how we create and interact with digital content, from game engines that can generate infinite worlds to video editing tools that can seamlessly remove or add objects in real-time. These advances signal a fundamental shift in how we'll create, consume, and manipulate digital media in the future, raising both exciting possibilities and important questions about authenticity and creative control. Links to all the papers we discussed: I Have Covered All the Bases Here: Interpreting Reasoning Features in Large Language Models via Sparse Autoencoders, Position: Interactive Generative Video as Next-Generation Game Engine, Video-T1: Test-Time Scaling for Video Generation, Aether: Geometric-Aware Unified World Modeling, SimpleRL-Zoo: Investigating and Taming Zero Reinforcement Learning for Open Base Models in the Wild, OmnimatteZero: Training-free Real-time Omnimatte with Pre-trained Video Diffusion Models