AMD Acquires World Labs for $8.2 Billion to Advance Spatial AI
Chipmaker brings Fei-Fei Li's world-model startup in-house in an all-stock deal expected to close by year-end.
KEY POINTS
- AMD agrees to acquire World Labs for roughly $8.2 billion in an all-stock deal.
- Fei-Fei Li will become AMD executive vice president and chief scientist, reporting to CEO Lisa Su.
- World Labs builds 'world models' for 3D environment generation and robot simulation.
- Deal expected to close by end of 2026 subject to regulatory approval.
- AMD was an early investor in World Labs' $230 million funding round in 2024.
AMD has agreed to acquire World Labs, the AI startup founded by computer vision pioneer Fei-Fei Li, for approximately $8.2 billion in stock. The all-stock transaction is expected to close by the end of 2026, pending regulatory approval.
Upon closing, Li will join AMD as executive vice president and chief scientist, reporting directly to CEO Lisa Su. The World Labs team will continue its research on AI models that understand and simulate three-dimensional environments.
“AI that understands the physical world and can act within it, going beyond predicting the next word.”
World Labs develops so-called world models, AI systems that generate and simulate 3D environments from text, images, or video. The company's first public product, Marble, allows users to create explorable 3D worlds from visual inputs.
AMD previously participated in World Labs' initial $230 million funding round in 2024 alongside investors such as Andreessen Horowitz, Intel, and Nvidia. The acquisition deepens AMD's push into AI infrastructure beyond hardware.
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