AMD is acquiring AI company World Labs in a deal worth more than $8 billion
TL;DR
AMD is acquiring World Labs, the AI research lab co-founded by Fei-Fei Li, in an all-stock deal worth about $8.2 billion. Launched in 2024, World Labs reached a $1 billion valuation within months and in 2025 released Marble, a world generation model that turns a prompt into interactive 3D worlds. The deal is expected to close by the end of the year. Li will become EVP and chief scientist at AMD, reporting to CEO Lisa Su, while the World Labs team continues to focus on AI model research.
Nauti's Take
For AMD the deal is an opportunity to add in-house expertise in world models, a field that matters for robotics, games and simulation, on top of its chips. The risk: $8.2 billion in stock for a lab with a single commercial product is an expensive bet, and research teams often slow down inside large companies.
Anyone working with 3D generation or simulation should watch whether Marble stays open or gets tied more closely to AMD hardware.
Sources