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http://www.new-ties.org/mamboThe NEW TIES project is growing an artificial society using computer programming that develops agents--or adaptive, artificial beings--that have independent behaviours. The project is the first of its kind to develop a large-scale and highly complex computer-based society. The project's results may have larger implications for information technologies design, evolutionary computing systems, artificial intelligence and linguistics.
Oh yeah, they are using the SOURCE engine to do it.
This is something that both excites me and scares me, but whatever