AMD to Acquire World Labs for $8.2 Billion

Advanced Micro Devices announced an agreement Monday to acquire World Labs, a San Francisco-based AI startup, in an all-stock transaction valued at approximately $8.2 billion. The deal represents the second-largest purchase in the chipmaker's history and is expected to close by the end of 2026.

World Labs specializes in spatial intelligence, creating world models that simulate and generate interactive 3D environments from text, image, or video inputs. AMD intends to leverage this research to develop AI chips capable of meeting the computational demands of robotic learning and physical AI.

Following the acquisition, founder Fei-Fei Li will join AMD as Executive Vice President and Chief Scientist, reporting to CEO Lisa Su. The integration aims to align model research with systems and compute to advance the next generation of AI technology.