AMD to Acquire World Labs in $8.2B Deal
AMD has announced a definitive agreement to acquire World Labs, a San Francisco-based AI startup founded by Fei-Fei Li, in an all-stock transaction valued at approximately $8.2 billion. The deal, expected to close by the end of 2026 subject to regulatory approval, marks AMD's largest AI acquisition to date. World Labs, founded in 2024, specializes in spatial intelligence and world models, developing its first product, Marble, which creates consistent 3D environments from various inputs, and its Atlas omni-model architecture that predicts new camera views from 2D images, addressing the sparse reconstruction problem. The company also acquired SceniX for robotics simulation. Fei-Fei Li will join AMD as EVP and Chief Scientist, reporting to CEO Lisa Su. This strategic move expands AMD beyond chips into full AI systems, integrating hardware, software, and model research, intensifying competition with Nvidia. The acquisition is a long-term investment, as World Labs currently generates minimal revenue.