AMD has entered into a definitive agreement to acquire World Labs, a research startup focused on spatial artificial intelligence. The deal is valued at approximately $8.2 billion and will be settled entirely in stock. The transaction is expected to close by the end of 2026, subject to regulatory approvals and standard closing conditions.

World Labs, based in San Francisco and founded by Dr. Fei-Fei Li, specializes in models that generate, reconstruct, and simulate interactive 3D environments from various data inputs. Their expertise also includes technologies for robotics training and simulation. This acquisition is intended to bolster AMD's capabilities in developing hardware, software, and systems for next-generation AI workloads.

Following the completion of the acquisition, Dr. Fei-Fei Li will join AMD as Executive Vice President and Chief Scientist, reporting directly to CEO Lisa Su. The World Labs team will continue its research into AI models within AMD. The company expects this integration to support its strategy of building an open AI ecosystem by aligning hardware development with evolving model architectures.