AMD has reached an agreement to acquire the AI startup World Labs for approximately $8.2 billion in stock. The startup, founded in 2024 and led by Fei-Fei Li, focuses on spatial intelligence, which aims to enable AI to understand and interact with 3D environments rather than just processing text or 2D images.
Following the acquisition, Fei-Fei Li will join AMD as chief scientist, reporting directly to CEO Lisa Su. Co-founders Justin Johnson and Ben Mildenhall will also remain with the team. The deal is expected to close by the end of 2026, pending regulatory approval.
Nvidia, which previously invested in World Labs during a funding round in February 2026, will receive AMD shares as part of the transaction. At the time of the earlier investment, the startup was valued at $5 billion, making the current acquisition price roughly 64 percent higher.
The acquisition follows AMD reaching a market capitalization of over $1 trillion, becoming the fourth US chipmaker to achieve this milestone. While some industry observers have characterized the deal as an acquihire, Li stated that the lab's mission to advance AI research will continue under AMD.
