Advanced Micro Devices announced on September 28, 2026, that it has entered into a definitive agreement to acquire World Labs, an AI model and research lab led by Dr. Fei-Fei Li. The all-stock transaction is valued at approximately US$8.2 billion and is expected to close by the end of 2026. The deal will bring a team of researchers and model experts to AMD to strengthen its AI hardware, software, and systems work.
Strategic Rationale
AMD said the acquisition will bring world-class research talent into the company. The move is intended to improve AMD's 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, compute infrastructure requirements are becoming more diverse.
World Labs develops advanced models that provide insight into how AI workloads are evolving. That expertise is expected to help shape AMD's future technology roadmaps. The acquisition also advances AMD's strategy to deliver AI infrastructure for an open ecosystem, reflecting closer alignment with model research as new AI applications demand different compute characteristics.
Leadership Perspectives
Dr. Lisa Su, chair and CEO of AMD, said building compute platforms for the next generation of AI requires a deep understanding of how models are evolving. She added that Dr. Fei-Fei Li and the World Labs team bring exceptional research leadership and model expertise. Together, AMD 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 of World Labs, said advancing the next generation of AI technology requires close collaboration across model research, systems, and compute. She stated that joining AMD will give her team the resources and engineering depth to accelerate research. The team will also help define the infrastructure needed for the next era of AI.
World Labs Technology and Future Role
Headquartered in San Francisco, World Labs develops spatial-intelligence models that generate, reconstruct, and simulate interactive 3D environments from text, image, and video inputs. The company also produces 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.
Dr. Fei-Fei Li will join AMD as executive vice president and chief scientist, reporting to Dr. Lisa Su. Her appointment reflects AMD's effort to connect its hardware and software roadmaps more directly with model research. The role positions AMD to anticipate emerging workload patterns and system requirements across the open ecosystem.
Transaction Details
The all-stock transaction is valued at approximately US$8.2 billion. AMD expects the deal to close by the end of 2026, subject to regulatory approvals and other customary closing conditions. Additional financial terms, including the exact stock consideration structure and any potential post-closing adjustments, were not disclosed in the announcement.
The acquisition is expected to strengthen AMD's competitive position in AI infrastructure as demand grows for systems that support spatial intelligence and physical AI. World Labs' research focus aligns with broader industry efforts to move beyond text and image models into real-world simulation. AMD aims to integrate those insights into future compute platforms.
The acquisition of World Labs represents a significant step in AMD's strategy to support an open AI ecosystem. By integrating advanced model research with semiconductor and software development, AMD aims to address the evolving demands of reasoning, robotics, simulation, and physical AI. The combination positions AMD to strengthen its role as AI workloads become more diverse and complex.