AMD Makes $8.2 Billion Bet on Spatial AI with Acquisition of Dr. Fei-Fei Li’s World Labs

Advanced Micro Devices (AMD) has entered into a definitive agreement to acquire spatial intelligence startup World Labs in an all-stock transaction valued at approximately $8.2 billion.
Founded by AI pioneer Dr. Fei-Fei Li, World Labs specializes in developing models that generate, reconstruct, and simulate interactive 3D environments from text, image, and video inputs to power robotic learning and physical AI applications. Upon the deal's expected close by the end of 2026, Dr. Li will join AMD as executive vice president and chief scientist, reporting directly to CEO Lisa Su.
The strategic move positions AMD to move beyond traditional language model infrastructure, vertically integrating a frontier research team to shape future hardware architectures specifically designed for spatial intelligence, simulation, and robotics workloads.