AMD announced today that it is acquiring World Labs, an artificial intelligence research laboratory co-founded by researcher Dr. Fei-Fei Li, through an all-stock transaction valued at roughly $8.2 billion. The startup, which was established in 2024 and achieved a $1 billion valuation within months, has already released a commercial product called Marble, a world generation model enabling users to create interactive three-dimensional environments using text prompts.
The transaction is anticipated to reach completion by the conclusion of the calendar year. Following the acquisition, Li will assume the position of executive vice president and chief scientist at AMD, maintaining direct reporting responsibilities to AMD Chief Executive Officer Lisa Su. AMD indicated that the World Labs team will maintain its focus on progressing artificial intelligence model research and development.
According to AMD’s statement, the acquisition will bolster the company’s capacity to engineer AI hardware, software, and integrated systems that align with the specifications of emerging computational models and applications. In her official communication, Li expressed her perspective on the move, describing it as a logical progression for continuing her initiative centered on developing advanced AI capabilities beyond large language models while maximizing impact within the broader AI sector.
Su emphasized that creating next-generation computational infrastructure for artificial intelligence demands comprehensive insight into how models are advancing. She noted that the World Labs team’s research leadership and expertise in model development positions the combined entity to create hardware, software, and systems capable of supporting advanced AI applications while reinforcing the collaborative open-source AI landscape.
This acquisition represents one of multiple substantial capital transactions concentrated on AI technology in recent weeks, following Nvidia’s announcement of its intention to acquire Hugging Face for nearly $13 billion earlier this month.
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