Monday, September 28th 2026
AMD to Buy World Labs for $8.2 Billion to Boost 3D Simulation and Robotics Strategy
AMD (NASDAQ: AMD) today announced that it has entered into a definitive agreement to acquire World Labs, an AI model and research lab led by AI pioneer Dr. Fei-Fei Li. The acquisition will bring a world-class team of researchers and model experts to AMD, strengthening its ability to develop AI hardware, software and systems around the needs of emerging models and applications.
As AI expands into reasoning, robotics, simulation and physical AI, the demands on compute infrastructure become more diverse. World Labs' expertise in developing advanced models will give AMD deeper insight into how workloads are evolving and help shape its future technology roadmaps. The acquisition advances AMD's strategy to deliver AI infrastructure for an open ecosystem.
The all-stock transaction is valued at approximately $8.2 billion and is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions.
Sources:
AMD, World Labs
As AI expands into reasoning, robotics, simulation and physical AI, the demands on compute infrastructure become more diverse. World Labs' expertise in developing advanced models will give AMD deeper insight into how workloads are evolving and help shape its future technology roadmaps. The acquisition advances AMD's strategy to deliver AI infrastructure for an open ecosystem.
Dr. Lisa Su, chair and CEO, AMD"Building the compute platforms for the next generation of AI requires a deep understanding of how models are evolving. Fei-Fei and the World Labs team bring exceptional research leadership and model expertise. Together, we can use that insight to develop the hardware, software and systems that will power the next generation of AI and strengthen the open AI ecosystem."
Dr. Fei-Fei Li, co-founder and CEO, World Labs"Advancing the next generation of AI technology requires close collaboration across model research, systems and compute. Joining AMD will give our team the resources and engineering depth to accelerate our research and help define the infrastructure needed for the next era of AI."Headquartered in San Francisco, World Labs develops spatial-intelligence models that generate, reconstruct and simulate interactive 3D environments from text, image and video inputs, as well as technology for robotic learning and simulation. Following the close of the transaction, the World Labs team will continue to focus on advancing AI model research, and Dr. Fei-Fei Li will join AMD as executive vice president and chief scientist, reporting to Dr. Lisa Su.
The all-stock transaction is valued at approximately $8.2 billion and is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions.
7 Comments on AMD to Buy World Labs for $8.2 Billion to Boost 3D Simulation and Robotics Strategy
The amount of debt driving this bubble is absolutely something to be concerned with.
And since it’s a stock transaction there shouldn’t be all that many issues.
When the bubble pops both companies will see a significant revaluation and the acquisition target will be the one that will see the largest haircut. Percentage wise
And since this transaction is all-stock, there will be no debt.
Exactly how many bones do you need? What do you want from them?Best they can do is some string and a candle.