AMD Acquires World Labs for $8.2B in AI Push

What happened

On September 28, 2026, AMD announced it will acquire world model startup World Labs, co-founded by AI computer vision pioneer Fei-Fei Li, in an all-stock deal valued at approximately $8.2 billion. Founded in 2024, World Labs reached a $1 billion valuation within months of establishment, and launched its core model Marble, which can generate interactive 3D worlds, in 2025. Following deal closure, Fei-Fei Li will join AMD as Executive Vice President and Chief Scientist reporting directly to Lisa Su, while the original team will remain focused on cutting-edge research. The transaction is still subject to regulatory approval and is expected to close by the end of 2026.

Key facts

Acquirer

AMD

Deal size and structure

Approximately $8.2 billion, all-stock transaction

Target company overview

World Labs, an AI research lab founded in 2024, reached a $1 billion valuation within months of establishment

Personnel arrangements

Fei-Fei Li will serve as AMD Executive Vice President and Chief Scientist, reporting to Lisa Su

Target core product

Marble, an interactive 3D world generation model launched in 2025 that can create entertainment content and robot training simulation environments

Background

The two parties previously launched collaborations in inference optimization and model training in 2025, and Fei-Fei Li was invited to speak at AMD's CES keynote in 2026. AI hardware vendors are currently accelerating partnerships with frontier model teams to strengthen their ecosystem positioning.

Why it matters

For the industry, this acquisition will allow AMD to rapidly fill gaps in its world model technology stack, improve its AI chip adaptation ecosystem, and narrow the competitive gap with NVIDIA. For developers, it will deliver a well-adapted 3D generation development toolchain. For end users, it will enable earlier access to smooth, reliable interactive 3D content and embodied AI products.

What to watch

Track regulatory approval progress for the acquisition, as well as the rollout of co-developed chip adaptation and 3D generation products following deal closure.