AMD acquired World Labs, an AI model and research lab, in an all-stock deal valued at $8.2 billion.

The deal will strengthen AMD's ability to develop AI hardware, software, and systems that support the needs of emerging models and applications, the company said.

Founded in 2024 and led by Fei-Fei Li – known as the "Godmother of AI," San Francisco-based World Labs develops “spatial-intelligence models” that generate, reconstruct, and simulate interactive 3D environments from text, image, and video inputs. The company also develops technology for robotic learning and simulation, all of which AMD said will provide it with “deeper insight into how workloads are evolving and help shape its future technology roadmaps.”

The transaction is expected to close by the end of 2026, subject to regulatory approval and customary closing conditions. Post-close, the World Labs team will continue its work on advanced AI model research, while Li will join AMD as an EVP and chief scientist reporting to AMD CEO Lisa Su.

“Building the compute platforms for the next generation of AI requires a deep understanding of how models are evolving,” Su noted. “Fei-Fei and the World Labs team bring exceptional research leadership and model expertise. Together, we can use that insight to develop the hardware, software, and systems that will power the next generation of AI and strengthen the open AI ecosystem.”

Li added: “Advancing the next generation of AI technology requires close collaboration across model research, systems, and compute. Joining AMD will give our team the resources and engineering depth to accelerate our research and help define the infrastructure needed for the next era of AI.”