Key facts
- AMD will acquire World Labs for $8.2 billion.
- The acquisition is expected to close by the end of the year.
- World Labs was founded in 2024 by Fei-Fei Li, Justin Johnson, Christoph Lassner, and Ben Mildenhall.
- AMD previously provided funding to World Labs.
- World Labs develops AI models that simulate the physical world, including tools like Marble and Atlas.
- Fei-Fei Li will become Executive Vice President and Chief Scientist at AMD.
- Justin Johnson and Ben Mildenhall will continue to lead the World Labs team within AMD.
Chipmaker AMD announced on September 29, 2026, that it has agreed to acquire World Labs, a startup focused on developing world models for artificial intelligence, for $8.2 billion. The transaction is expected to be finalized by the end of the year, subject to regulatory approval.
World Labs was founded in 2024 by computer vision scientist Fei-Fei Li, alongside researchers Justin Johnson, Christoph Lassner, and Ben Mildenhall. The company secured $230 million in initial funding, with AMD among its investors. World Labs' core technology involves creating AI models that simulate the physical world, aiming to provide predictive capabilities. Their first publicly available tool, Marble, generates 3D spaces using Gaussian splats, which can be exported for use in film production and game development. The company has since introduced other models like Atlas.
This acquisition is seen as a strategic move for AMD to enhance its AI capabilities and compete more effectively with rivals like Nvidia, which has a strong presence in areas such as generating synthetic data for robot training. AMD has previously developed its own AI models, such as the open-source Micro-World, but has lacked a comprehensive suite comparable to Nvidia's offerings.
Following the acquisition, Fei-Fei Li will assume the role of Executive Vice President and Chief Scientist at AMD. Justin Johnson and Ben Mildenhall will continue to lead the World Labs team as it integrates into AMD, forming a new frontier research organization. While World Labs initially gained recognition for content creation tools, AMD's focus for the acquisition appears to be on applications in robotics and physical AI, leveraging World Labs' expertise to inform future technology roadmaps.