AMD announced its intent to acquire World Labs, an artificial intelligence research company co-founded by Dr. Fei-Fei Li, in a transaction valued at roughly $8.2 billion. The deal is structured as an all-stock acquisition and is currently expected to close by the end of the year.

World Labs, which only launched in 2024, gained significant industry attention by reaching a $1 billion valuation within months of its inception. The company’s primary technology, a model known as Marble, allows users to generate interactive 3D environments based on text prompts. This technology is viewed as a significant entry point for AMD into the generative AI and spatial computing markets.

Following the completion of the deal, Dr. Fei-Fei Li is slated to join AMD as an Executive Vice President and Chief Scientist. She will report directly to AMD leadership. While the financial terms and leadership changes have been confirmed, the integration strategy for World Labs' existing staff and the specific roadmap for the Marble platform under AMD’s ownership remain to be fully detailed. The acquisition represents a major strategic move for AMD as it seeks to bolster its software and AI research capabilities to compete with other major hardware and cloud computing firms.