AMD to Acquire World Labs for $8.2 Billion in All-Stock Deal

Advanced Micro Devices has agreed to acquire World Labs in an all-stock transaction valued at approximately 8.2 billion U.S. dollars, with the deal expected to close by the end of 2026 pending regulatory approval and customary closing conditions. The acquisition targets the spatial intelligence company founded by Fei-Fei Li, who will join AMD as an executive vice president and chief scientist reporting directly to chairman and CEO Lisa Su. The transaction was reported by TMTPost. AMD's investment arm had previously participated in World Labs' funding rounds, including a 100 million U.S. dollar Series C in February 2026 that valued the company at 5.4 billion U.S. dollars, representing roughly a 62 percent premium in the acquisition price.

World Labs, founded in 2024 and currently employing around 70 people, focuses on spatial intelligence, developing AI systems that understand three-dimensional space, object relationships, and real-world physical interactions. Its flagship product, Marble, is a multimodal world model capable of generating high-fidelity, persistent 3D environments from a single image, video, or text prompt. The company also developed the Atlas model architecture, which predicts the next viewpoint from a 2D image, addressing long-standing challenges in computer vision. These technologies demand significant computational throughput and memory bandwidth, aligning with AMD's strategy to integrate cutting-edge AI research with its hardware roadmap.

The acquisition follows AMD's recent purchases of Taalas, MEXT, and FastFlowLM, expanding its presence across the AI stack from inference chips to model research. Industry analysts note the deal reflects AMD's effort to compete with NVIDIA's Cosmos physical AI initiatives, while positioning the company to capture future demand for physically intelligent AI systems. Upon completion, World Labs' co-founders Justin Johnson and Ben Mildenhall will continue leading the team within AMD, contributing to a new advanced AI research organization focused on building an end-to-end AI ecosystem spanning hardware, software, and open models.