AMD announced on September 28, 2026, that it has agreed to acquire World Labs, a San Francisco-based artificial intelligence lab, in an all-stock transaction valued at approximately $8.2 billion [1]. World Labs, founded by renowned AI researcher Fei-Fei Li, specializes in developing world models capable of simulating 3D environments, which can be used to train intelligent agents such as robots and vehicles in rich, physics-aware digital worlds before real-world deployment [1].
Fei-Fei Li, who previously served as a Stanford professor and led AI research at Google, will join AMD as chief scientist and executive vice president following the acquisition [1]. In a demonstration earlier this year, Li and AMD CEO Lisa Su showcased World Labs' Marble model, which can generate three-dimensional scenes from a few images. Li emphasized the safety benefits of training intelligent agents in simulated environments [1].
AMD stated that World Labs will remain separate from its chipmaking business until the transaction closes later this year. The company expects World Labs' research on next-generation models to inform the development of future AI chips, allowing AMD to anticipate technological requirements years in advance [1]. This acquisition marks AMD's second-largest purchase, following its $50 billion acquisition of Xilinx in 2022 [1].
The deal highlights AMD's aggressive push into the AI market, mirroring recent moves by other tech giants. OpenAI acquired Jony Ive's AI devices startup io for $6.4 billion, Nvidia spent $33 billion on Groq and Hugging Face, and Meta invested $14 billion for a minority stake in Scale AI in 2025 [1].
CONCLUSION
AMD's $8.2 billion acquisition of World Labs signals a significant escalation in the competition for AI talent and technology among leading tech firms. By bringing Fei-Fei Li and her team on board, AMD aims to strengthen its AI research and chip development, positioning itself for future growth in the rapidly evolving AI sector.