AMD is acquiring AI company World Labs in a deal worth more than $8 billion

AMD announced an all-stock acquisition of AI research lab World Labs for about $8.2 billion. World Labs, founded by Dr. Fei-Fei Li in 2024, launched its first commercial product, the Marble world-generation model, in 2025 and was valued at $1 billion shortly after launch. Li will serve as EVP and chief scientist at AMD, while the World Labs team will continue AI model research under AMD’s umbrella.