AMD has agreed to acquire World Labs, an AI model and research lab led by Dr. Fei-Fei Li, in an all-stock transaction valued at approximately $8.2 billion. World Labs, headquartered in San Francisco, builds spatial-intelligence models that generate, reconstruct and simulate interactive 3D environments from text, image and video inputs and develops robotic learning and simulation technologies. Following close, the World Labs team will continue model research inside AMD, and Dr. Fei-Fei Li will join as executive vice president and chief scientist reporting to AMD chair and CEO Dr. Lisa Su. The deal is expected to close by the end of 2026, subject to regulatory approvals and customary closing conditions.
AMD frames the acquisition as a strategic move to embed deep model expertise into its hardware, software and systems roadmaps as AI extends into reasoning, robotics, simulation and physical AI, strengthening an open AI ecosystem. Executives emphasize that direct insight into evolving workloads will guide next-generation compute platform design. The announcement also includes a cautionary statement noting that the transaction and its anticipated benefits are forward-looking and dependent on a range of business, regulatory, supply-chain and integration risks called out by AMD.
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