- AMD (NASDAQ:AMD) plans to acquire World Labs in an all-stock deal valued at approximately $8.2 billion
- The acquisition adds Dr. Fei-Fei Li and World Labs’ AI research team to strengthen AMD’s AI hardware, software and systems capabilities
- World Labs’ expertise in spatial intelligence, robotics and 3D simulation is expected to help shape AMD’s future AI technology roadmap and open ecosystem strategy
- Advanced Micro Devices stock (NASDAQ:AMD) opened trading at US$616.74
Advanced Micro Devices (NASDAQ:AMD) has announced a definitive agreement to acquire World Labs, an artificial intelligence research and model development company founded and led by AI pioneer Dr. Fei-Fei Li, in an all-stock transaction valued at approximately US$8.2 billion.
The acquisition is expected to bolster AMD’s capabilities across AI hardware, software and systems development as the company seeks to expand its position in the rapidly evolving artificial intelligence market.
World Labs, based in San Francisco, specializes in spatial-intelligence models that can generate, reconstruct and simulate interactive 3D environments from text, image and video inputs. The company also develops technologies focused on robotic learning and simulation, areas that are gaining importance as AI applications move beyond traditional language models into robotics, reasoning systems and physical AI.
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AMD said the addition of World Labs’ team of researchers and model experts will provide deeper insight into emerging AI workloads and help guide the company’s future technology roadmaps.
“Building the compute platforms for the next generation of AI requires a deep understanding of how models are evolving,” AMD’s CEO and chair, Dr. Lisa Su said in a news release. “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.”
The deal represents another step in AMD’s broader strategy to build AI infrastructure for an open ecosystem. By bringing AI researchers and hardware engineers closer together, AMD aims to accelerate innovation across its portfolio of AI products and platforms.
Following the completion of the transaction, the World Labs team will continue its research efforts within AMD. Li is expected to join the semiconductor company as executive vice president and chief scientist, reporting directly to Su.
The transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions.
Investors will be watching closely to see how the acquisition strengthens AMD‘s competitive position in the AI market, where demand for advanced computing infrastructure continues to grow alongside the development of increasingly sophisticated AI models and applications.
Advanced Micro Devices stock (NASDAQ:AMD) opened trading around 0.20% higher at US$616.74 and has risen more than180% since the year began.
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