AMD agrees to acquire World Labs for $8.2 billion

AMD has entered into a definitive agreement to acquire World Labs in an all-stock transaction valued at approximately $8.2 billion, the companies announced. The acquisition has not closed. AMD expects it to close by the end of 2026, subject to regulatory approvals and other customary closing conditions.

If the deal closes, World Labs co-founder and CEO Fei-Fei Li is expected to become AMD executive vice president and chief scientist, reporting to AMD chair and CEO Lisa Su. AMD said the World Labs team would continue its AI model research inside the company.

World Labs develops spatial-intelligence models that generate, reconstruct and simulate interactive 3D environments from text, images and video, along with technology for robotic learning and simulation. Put simply, the lab is building AI that can model and reason about three-dimensional environments, rather than only process language. Its website says the Marble product can create navigable, editable 3D worlds from several kinds of input.

The proposed acquisition would tie that model research more directly to AMD’s compute design. AMD said World Labs’ work could give the chipmaker earlier insight into changing AI workloads and help shape future hardware, software and systems roadmaps. The companies also said they intend to build an open AI ecosystem spanning hardware, software, platforms and widely accessible open models. These are plans for after closing, not completed integrations.

The transaction builds on an existing technical relationship. World Labs said it began a deep technical partnership with AMD in 2025, starting with model training and inference optimization on AMD GPUs. Li wrote that combining model research with a focused hardware effort could improve efficiency and scale, and that the teams saw a fit across software, hardware, foundation models and applications.

The companies have not publicly identified the specific regulatory approvals required. Their announcements also do not disclose an exchange ratio, termination provisions, voting arrangements or other detailed transaction terms.