AMD buys AI startup World Labs to boost its artificial intelligence research

AMD has announced an agreement to purchase the artificial intelligence research firm World Labs in an all-stock transaction valued at roughly $8.2 billion. The startup, which was established in 2024 by Dr. Fei-Fei Li, recently released Marble, a commercial tool capable of generating interactive 3D environments through text prompts. This acquisition is projected to reach completion before the conclusion of this year.

Following the merger, Dr. Li will transition into the role of EVP and chief scientist at AMD, where she will work directly under CEO Lisa Su. The existing World Labs staff will remain dedicated to progressing AI model research. This strategic move allows AMD to integrate specialized expertise in world generation models, strengthening its competitive position within the rapidly evolving artificial intelligence sector.