Atlas is an auto-regressive diffusion model, so context length limitations apply similar to LLMs and video models.
Where Atlas has an edge is that its context comprised of an arbitrary sequence of images with camera poses, which lends itself to managing the context in creative ways (we called this "context juggling" in our RTFM blog, https://www.worldlabs.ai/blog/rtfm). So yes through clever context management you could potentially build an entire 3D model of the world.
My first thought is a detailed Hogwarts that is fully explorable using scenes from the movies (or even descriptions from the books?)
You can also manually position the input images in 3D space to create scenes generatively; we show examples of this in the "generating with spatial context" section