Chipmaker AMD has announced it is acquiring World Labs, the AI research lab co-founded by prominent researcher Dr. Fei-Fei Li, in an all-stock deal worth roughly $8.2 billion.
Key facts
- AMD is acquiring AI company World Labs in an all-stock deal worth approximately $8.2 billion.
- World Labs was co-founded by prominent researcher Dr. Fei-Fei Li.
- World Labs launched in 2024 and was valued at $1 billion within months.
- AMD had previously invested in World Labs.
- The startup launched its first commercial product, a world generation model.
AMD announced on September 28, 2026 that it is acquiring World Labs, an artificial intelligence research lab co-founded by the prominent researcher Dr. Fei-Fei Li, according to The Verge. The all-stock deal is valued at approximately $8.2 billion.
World Labs launched in 2024 and reached a valuation of $1 billion within a matter of months, The Verge reported. The startup went on to launch its first commercial product, a world generation model.
The acquisition builds on an existing relationship between the two companies. According to CNBC, the chipmaker had previously invested in World Labs before moving to acquire the firm outright.
Dr. Fei-Fei Li is a well-known figure in the AI research community, and her involvement helped establish World Labs’ profile shortly after its 2024 launch. The company’s rapid rise to a $1 billion valuation underscored the intense investor interest in AI research startups.
Because the transaction is structured as an all-stock deal, AMD is using its equity rather than cash to complete the roughly $8.2 billion purchase. The reporting did not specify a timeline for the deal’s completion or additional financial terms.
Why it matters
The deal reflects continued heavy investment by major chipmakers in artificial intelligence capabilities, with AMD moving to bring a prominent research lab in-house. At $8.2 billion, the all-stock acquisition signals how much value companies are placing on cutting-edge AI research and talent.
Frequently asked questions
How much is AMD paying for World Labs?
AMD is acquiring World Labs in an all-stock deal worth approximately $8.2 billion, according to The Verge.
Who co-founded World Labs?
World Labs was co-founded by the prominent researcher Dr. Fei-Fei Li.
When did World Labs launch?
World Labs launched in 2024 and was valued at $1 billion within a matter of months. It later launched its first commercial product, a world generation model.