I read here (Google's crash course on recommendations) the following:
Given a new item $i_0$ not seen in training, if the system has a few interactions with users, then the system can easily compute an embedding $v_{i_0}$ for this item without having to retrain the whole model. The system simply has to solve the following equation or the weighted version:
$\underset{v_{i_0} \in \mathbb{R}^d} {\min} \| A_{i_0} - Uv_{i_0}\| $
The preceding equation corresponds to one iteration in WALS: the user embeddings are kept fixed, and the system solves for the embedding of item . The same can be done for a new user.
But if the item was truly not seen in training, how can the system still compute an embedding for it? If there is no data at all for this item, wouldn't the embedding be a 0 vector?
Also, they seem to cover this approach in the context of items not seen in training, but would it work for (new) users as well?