Advanced Micro Devices Inc. has announced a definitive agreement to acquire World Labs Inc. for $8,2 billion in stock. The transaction is expected to close by the end of the year. This acquisition follows a $1 billion funding round for World Labs seven months ago, which valued the startup at $5 billion and included participation from Nvidia Corp.
World Labs, founded in 2024 by AI researcher Fei-Fei Li, specializes in spatial intelligence models. Its flagship algorithm, Atlas, creates interactive three-dimensional environments from photos, including simulations of moving objects like conveyor belts. These models are designed to assist in training industrial robots within virtual simulations.
The deal integrates World Labs' research capabilities into AMD's existing robotics and AI hardware portfolio. AMD currently produces the Ryzen AI Embedded X100 series of chips for robotics and previously acquired Xilinx Inc. for $50 billion in 2022 to expand its presence in customizable processor markets.
Following the completion of the acquisition, Fei-Fei Li will join AMD as executive vice president and chief scientist. World Labs will continue its focus on AI research projects. Beyond robotics, the company's technology supports applications such as text-to-video generation, image creation, and the integration of visual effects into existing footage.
