AMD has agreed to acquire World Labs in an all-stock transaction valued at about $8.2 billion. The startup, co-founded by AI researcher Fei-Fei Li, develops models that generate and understand interactive three-dimensional environments rather than focusing only on text.
World Labs launched in 2024 and released Marble, a commercial model that creates interactive 3D worlds from prompts, in 2025. After the deal closes, expected by year-end, Li will become AMD’s executive vice president and chief scientist and report to CEO Lisa Su. The World Labs team is set to continue its model research.
For AMD, the acquisition connects model development more directly to decisions about accelerators, software and full computing systems. The company says insight into emerging applications can help it design future platforms. The price reflects strategic expectations, not proven mass adoption of generated worlds. Closing still depends on the usual transaction conditions, and the announcement does not specify how World Labs products or customer access will change.