Amd to acquire world labs in an all-stock deal valued at over eight billion dollars

Amd has announced its agreement to acquire world labs, an artificial intelligence research laboratory co-founded by prominent researcher dr. fei-fei li. The transaction is structured as an all-stock deal valued at approximately $8.2 billion and is expected to close by the end of the year.

Background and products

Founded in 2024, world labs achieved a $1 billion valuation within months of its inception. The startup introduced its first commercial product, a spatial intelligence system named marble, in 2025. The model is designed to allow users to generate interactive three-dimensional environments from text prompts.

Leadership transition

Following the completion of the acquisition, dr. fei-fei li will join amd as executive vice president and chief scientist, reporting directly to amd chief executive officer lisa su. The broader world labs team will transition to amd to continue its ongoing research into advanced artificial intelligence models.

Strategic outlook

Executives from both companies highlighted the strategic alignment of the merger. Su noted that the integration of world labs will enhance amd's capacity to design hardware, software, and systems tailored to the demands of emerging models. Meanwhile, li emphasized that joining amd provides a stable platform to scale their foundational research beyond traditional large language models while maintaining engagement with the broader open ecosystem. The transaction represents another significant consolidation event within the artificial intelligence sector.