Do You Know? AMD says it is acquiring World Labs, an AI research company co-founded by researcher Fei-Fei Li, in an all-stock deal valued at approximately $8.2 billion.
What AMD is acquiring
AMD announced the agreement on September 28, 2026. World Labs launched in 2024 and developed Marble, a world-generation model that allows users to create interactive 3D worlds from a prompt. The startup launched Marble as its first commercial product in 2025.
The transaction is expected to close by the end of 2026. The source does not provide additional terms for the all-stock deal.
Fei-Fei Li will join AMD
Li, World Labs’ co-founder and chief executive, will become an executive vice president and AMD’s chief scientist. She will report to AMD CEO Lisa Su.
World Labs’ team is expected to continue focusing on AI model research. AMD says the acquisition will strengthen its ability to develop AI hardware, software and systems around emerging models and applications.
Why the deal matters
The acquisition connects World Labs’ model research with AMD’s work in AI computing infrastructure. AMD said that understanding how AI models evolve is important to building the platforms needed for future systems.
World Labs was valued at $1 billion within months of its 2024 launch, according to the source. AMD’s planned purchase would therefore represent a substantial increase over that earlier valuation, although the source does not detail the company’s current financial performance or the deal’s specific stock structure.
What happens next
- The acquisition is expected to close by the end of 2026.
- Li is expected to become AMD’s executive vice president and chief scientist.
- The World Labs team is expected to continue advancing AI model research within AMD.
Frequently asked questions
How much is AMD paying for World Labs?
AMD’s all-stock acquisition is valued at approximately $8.2 billion.
Who founded World Labs?
World Labs was co-founded by AI researcher Fei-Fei Li.
What is World Labs known for?
Its first commercial product, Marble, is a world-generation model for creating interactive 3D worlds from prompts.
When is the deal expected to close?
The transaction is expected to close by the end of 2026.
Bottom Line
AMD plans to bring World Labs and its research team into the company through an approximately $8.2 billion all-stock acquisition. The deal would also make Fei-Fei Li AMD’s chief scientist, pending completion expected by year-end.
Source
This report is based on information published by The Verge.
