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AMD Acquires Fei-Fei Li's World Labs for $8.2 Billion to Strengthen AI Capabilities

AMD has announced a major acquisition in the AI space, purchasing World Labs—the AI research lab co-founded by Dr. Fei-Fei Li—in an all-stock deal worth approximately $8.2 billion. The transaction is expected to close by the end of the year.

World Labs, which launched in 2024, quickly gained traction in the AI research community, reaching a $1 billion valuation within months of its founding. The startup's first commercial product, called Marble, is a world generation model that enables users to create interactive 3D worlds from text prompts.

Under the terms of the deal, Dr. Fei-Fei Li will join AMD as executive vice president and chief scientist, reporting directly to AMD CEO Lisa Su. The World Labs team will continue its focus on advancing AI model research following the acquisition.

The move represents AMD's latest push to expand its AI capabilities amid increasing competition in the semiconductor and AI infrastructure markets.

Sources