AMD is acquiring AI company World Labs in a deal worth more than $8 billion
AMD is acquiring AI research lab World Labs, co-founded by Dr. Fei-Fei Li, in an all-stock deal valued at approximately $8.2 billion. This acquisition aims to bolster AMD's capabilities in developing AI hardware, software, and systems, with Dr. Li joining AMD as EVP and chief scientist.
Why it matters
This significant acquisition highlights the intense competition and consolidation in the AI industry, as major chipmakers like AMD and Nvidia invest heavily to integrate AI model expertise with hardware development, shaping the future of AI technology.
AMD announced today that it’s acquiring World Labs, an AI research lab co-founded by the prominent researcher Dr. Fei-Fei Li, in an all-stock deal worth approximately $8.2 billion. World Labs launched in 2024 and was valued at $1 billion in a matter of months. The startup launched its first commercial product, a world generation model called Marble that lets users make interactive 3D worlds from a prompt, in 2025.
The deal is expected to close by the end of the year. Li will become EVP and chief scientist at AMD, reporting to AMD CEO Lisa Su, while the World Labs team will “continue to focus on advancing AI model research.” AMD also notes that the acquisition will strengthen “its ability to develop AI hardware, software and systems around the needs of emerging models and applications.”
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in