AMD to Acquire World Labs in Major AI Investment
AMD has unveiled plans to acquire AI company World Labs in a significant all-stock deal valued at approximately $8.2 billion. The announcement comes as part of AMD’s strategy to enhance its AI capabilities, focusing on developing hardware, software, and systems tailored to innovative models and applications. The transaction is anticipated to conclude by the end of the year.
Leadership Changes and Future Goals
Following the acquisition, World Labs’ co-founder and CEO, Dr. Fei-Fei Li, will assume the role of Executive Vice President and Chief Scientist at AMD, reporting directly to CEO Lisa Su. The existing team at World Labs will maintain its dedication to advancing AI model research. Dr. Li expressed her enthusiasm for joining AMD, highlighting the opportunity to further World Labs’ mission within the broader AMD framework.
Commitment to Advancing AI
In a post on her Substack, Dr. Li underscored the strategic move, stating, “It’s very clear that the right path for myself and World Labs is to continue our mission as a part of AMD. Together we’re committed to keep pushing the frontier of AI to solve real problems, and doing so openly with the community and the entire ecosystem.”
AMD’s CEO Lisa Su emphasised the importance of understanding AI model evolution, noting, “Fei-Fei and the World Labs team bring exceptional research leadership and model expertise.” Su conveyed her confidence that this acquisition would enable AMD to build compute platforms that will empower the next generation of AI technologies.
Background and Market Impact
World Labs, established in 2024, quickly gained prominence, reaching a valuation of $1 billion within months of its inception. In 2025, it introduced Marble, a commercial product that creates interactive 3D worlds from text prompts. The acquisition is part of a broader trend of high-value deals in the AI sector, including Nvidia’s recent announcement to purchase Hugging Face for nearly $13 billion.
Reporting based on coverage first published by theverge.com.