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AMD Signs Agreement to Acquire World Labs in $8.2 Billion Deal

At a glance

  • AMD agreed to acquire World Labs in an all-stock transaction.
  • The deal is valued at approximately $8.2 billion.
  • Dr. Fei-Fei Li will join AMD as executive vice president and chief scientist.

AMD has entered into a definitive agreement to acquire World Labs, an artificial intelligence research lab led by Dr. Fei-Fei Li, in a transaction valued at $8.2 billion.

The acquisition involves an all-stock transaction and is subject to regulatory approvals and standard closing conditions. According to AMD, the deal is expected to be finalized by the end of 2026.

World Labs specializes in developing spatial-intelligence models that can generate, reconstruct, and simulate interactive 3D environments using text, image, and video inputs. The company also builds technology for robotic learning and simulation.

Upon completion of the transaction, Dr. Fei-Fei Li is scheduled to join AMD as executive vice president and chief scientist. Dr. Li will report directly to AMD CEO Dr. Lisa Su following the closing of the deal.

What the numbers show

  • The transaction is valued at about $8.2 billion.
  • The deal is structured as an all-stock acquisition.
  • Closing is anticipated by the end of 2026, pending approvals.

AMD stated that the acquisition is designed to enhance its capabilities in artificial intelligence and computing. The agreement outlines that the integration of World Labs will proceed after all regulatory and customary conditions are met.

World Labs’ core technologies include models that interpret and simulate complex environments, which are applied in fields such as robotics and advanced simulation. The company’s work focuses on converting various data types into interactive digital spaces.

Following the closing of the acquisition, Dr. Fei-Fei Li will take on a leadership role at AMD, overseeing scientific initiatives and contributing to the company’s research direction. The executive structure will have Dr. Li reporting to Dr. Lisa Su, AMD’s chief executive officer.

* This article is based on publicly available information at the time of writing.