A simulated universe, represented by a network of data streams overlaid on a galaxy.

Is Our Reality Just a Business Model? Exploring the Simulation Hypothesis

Elliot Brynn in Tech & Innovation December 2025 • 4 min read.

"Could our universe be a meticulously planned project, a service provided for a fee, or even a platform driven by network effects? Unpacking the simulation hypothesis with a business-minded approach."

The simulation hypothesis, the idea that our reality is a computer simulation, has captivated scientists, philosophers, and the general public alike. Popularized by thought experiments and fueled by advances in computing power, the concept raises profound questions about the nature of existence.

While much of the discussion has been philosophical or technological, a new perspective is emerging: business. If we live in a simulation, what is the economic justification for it? What are the underlying business models that sustain our simulated world? This article explores these questions, viewing the simulation hypothesis through the lens of business and economics.

By examining potential business models, risk management strategies, and future research directions, we can gain a deeper understanding of the simulation hypothesis and its implications for sustainability, digital transformation, and artificial intelligence.

The Simuverse: Project, Service, or Platform? Unveiling Potential Business Models

A simulated universe, represented by a network of data streams overlaid on a galaxy.

To explore the business side of the simulation hypothesis, it’s helpful to define a term for a universe existing within a simulation: the 'simuverse.' The core question then becomes: if we live in a simuverse, what is its business model? What incentives would drive an advanced civilization to create and maintain such a complex undertaking?

Here are a few potential business models for a simuverse:

Simuverse as a Project: Imagine an organization, perhaps governmental or private, that runs the simuverse as an internal project. Like any project, it requires a clear purpose and a business justification. This purpose could range from education and entertainment to advanced research and artistic expression.
Simuverse as a Service (SaaS): In this scenario, the simuverse provider serves external clients willing to pay for access. Think of it as a utility service, offering on-demand experiences tailored to specific needs, such as entertainment, research, or education. This model allows clients to avoid the significant investment of building their own simuverse.
Simuverse as a Platform (Saap): This is perhaps the most complex model. The simuverse provider builds a platform that allows multiple groups to interact. Users gain access to the platform, while complementors offer third-party content or services, adding value and driving network effects. The platform could encompass various domains, and revenue could be generated through user fees, complementor fees, or a combination of both.

These scenarios aren't mutually exclusive. A simuverse could begin as an internal project and evolve into a SaaS offering, eventually growing into a full-fledged platform. Each stage presents unique business model challenges and opportunities.

The Future of Reality: Simulation as a Tool for Understanding

By exploring the business and economic dimensions of the simulation hypothesis, we can better understand its potential implications. Viewing simulation as a research method allows us to gain insights into our world, generate ideas for future interventions, and possibly refine our understanding of reality itself. The journey into the simuverse may ultimately lead to a deeper appreciation of our own existence.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2404.08991,

Title: Business Models For The Simulation Hypothesis

Subject: cs.cy cs.ai cs.et econ.gn q-fin.ec

Authors: Evangelos Katsamakas

Published: 13-04-2024

Everything You Need To Know

What is the 'simuverse' and why is it important to understanding the simulation hypothesis?

The 'simuverse' is a term introduced to represent a universe existing within a simulation. It's crucial for understanding the simulation hypothesis because it shifts the focus from abstract philosophical concepts to concrete, potentially quantifiable aspects like business models and economic incentives. By defining the simuverse, we can start to explore how such a simulated reality might be structured, who might be running it, and what motivations could drive its creation and maintenance. This approach provides a tangible framework for analyzing the hypothesis beyond purely theoretical discussions, allowing us to ask questions about the purpose, economics, and potential future of a simulated reality.

What are the key business models that could potentially explain the existence of the 'simuverse'?

The article presents three main business models for the 'simuverse'. Firstly, it could be a 'Project', perhaps run internally by an organization for purposes like research or entertainment, similar to any other internal project with a clear business justification. Secondly, it could be a 'Service (SaaS)', where providers offer on-demand experiences to external clients, much like a utility. Finally, it proposes the 'Platform (Saap)' model, where the simuverse acts as a platform, enabling multiple groups to interact, with revenue generated through user fees, complementor fees, or both. Each model presents unique challenges and opportunities, ranging from project management and cost efficiency (Project model) to service delivery and client acquisition (SaaS model) and platform scaling and network effects (Saap model). These models aren't mutually exclusive and can evolve over time, which enriches the understanding of the simulation hypothesis.

How does viewing the simulation hypothesis through a business lens change the typical discussions about it?

By examining the simulation hypothesis through a business lens, the discussion moves away from abstract philosophical debates and towards more practical and tangible considerations. The business-focused approach encourages analysis of the economic incentives and motivations behind creating and maintaining a 'simuverse'. This includes questions like, what is the return on investment? Who are the customers or users? What are the potential revenue streams? This shift allows us to explore the simulation hypothesis in terms of business models, risk management, and the potential for digital transformation and Artificial Intelligence. This perspective transforms the discussion from a theoretical concept to an exploration of its economic and practical implications. It encourages us to think about the 'simuverse' in a more grounded way.

What could be the implications if the 'simuverse' operates under a 'Service (SaaS)' business model?

If the 'simuverse' operates as a 'Service (SaaS)', it implies that external clients pay for access to tailored experiences, such as entertainment, research, or education. This model has several implications. It suggests the existence of a provider offering on-demand experiences, much like a utility service. Clients could avoid the significant investment required to build their own simuverse by subscribing to this service. The provider would have an incentive to offer high-quality, diverse experiences to attract and retain clients. From a business perspective, the SaaS model would involve considerations like pricing, client acquisition, service-level agreements, and ongoing maintenance. The success of the simuverse as a service would depend on its ability to meet the specific needs of its clients efficiently and effectively.

How could exploring the business and economic aspects of the simulation hypothesis enhance our understanding of our own reality?

Exploring the business and economic dimensions of the simulation hypothesis can provide insights into our own world. It encourages us to view the simulation as a tool for understanding our reality, similar to how we use simulations in scientific research. By studying the potential business models and incentives of a 'simuverse', we can gain a deeper appreciation for the principles governing our existence. Furthermore, analyzing the 'simuverse' from this perspective allows us to generate ideas for interventions in our world and potentially refine our understanding of reality itself. The focus shifts from the abstract nature of reality to tangible business strategies and economic models, making the hypothesis less of a philosophical conundrum and more of a framework for investigation, innovation, and insight into our own existence.