AMD has announced the acquisition of World Labs, a startup focused on deep learning models for physical reality, in a deal valued at $8.2 billion. The transaction is expected to close by the end of 2026, pending regulatory approval.
As part of the agreement, World Labs founder Fei-Fei Li will join AMD as executive vice president and chief scientist. The companies previously established a partnership focused on inference optimization and training, following Li's appearance at AMD's CES presentation earlier this year.
World Labs, founded by Li in 2024, develops models designed to ground artificial intelligence in physics. Its first product, Marble, is intended for entertainment applications and creating simulated environments for training robots.
The acquisition aims to bolster AMD's competitive position against Nvidia in the AI chip market. By integrating World Labs' expertise, AMD plans to refine its hardware roadmap to better support frontier workloads and the development of generative AI for robotics.
