AMD is acquiring AI company World Labs in a deal worth more than $8 billion

AMD is acquiring AI research lab World Labs in an all-stock deal valued at approximately $8.2 billion. Co-founded by Dr. Fei-Fei Li, World Labs launched in 2024 and quickly reached a $1 billion valuation. In 2025, the company released its first commercial product, Marble, a world generation model that enables users to create interactive 3D worlds from prompts.

This acquisition marks AMD's first major move into AI research labs, unlike its previous focus on hardware, and brings Dr. Fei-Fei Li's expertise into the company.