We report direct observations of photon-mediated spin-exchange interactions in an atomic ensemble. Interactions extending over a distance of 500 microns are generated within a cloud of cold rubidium atoms coupled to a single mode of light in an optical resonator. We characterize the system via quench dynamics and imaging of the local magnetization, verifying the coherence of the interactions and demonstrating optical control of their strength and sign. Furthermore, by initializing the spin-1 system in the mF = 0 Zeeman state, we observe correlated pair creation in the mF = +/- 1 states, a process analogous to spontaneous parametric down-conversion and to spin mixing in Bose-Einstein condensates. Our work opens new opportunities in quantum simulation with long-range interactions and in entanglement-enhanced metrology.
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