AMD Agrees to Acquire AI Startup World Labs for $8.2 Billion

Advanced Micro Devices agreed to acquire AI research startup World Labs in an all-stock deal valued at roughly $8.2 billion. World Labs founder Dr. Fei-Fei Li will join AMD as executive vice president and chief scientist, reporting to CEO Dr. Lisa Su. The transaction, slated to close by the end of 2026 subject to regulatory approvals, aims to bolster AMD's full-stack AI strategy across spatial intelligence, 3D simulation, and robotics. Earlier this year, World Labs raised $1 billion. Following the announcement, AMD shares fell nearly 4% to close at $608.14 on Monday.