AMD agrees to buy Fei-Fei Li's World Labs for $8.2 billion

AMD announced on 28 September 2026 that it will acquire World Labs, the spatial-intelligence company founded by Stanford computer scientist Fei-Fei Li, in an all-stock transaction valued at about $8.2 billion.

World Labs builds models that generate, reconstruct and simulate interactive 3D environments from text, images and video. According to AMD, the company also develops technology for robotic learning and simulation, the use of generated worlds to train machines before they act in physical space. AMD’s release names robotics and physical AI among the areas where it expects demand for this kind of model to grow.

Under the agreement, Fei-Fei Li joins AMD as executive vice president and chief scientist, reporting to chief executive Lisa Su. The chipmaker expects the deal to close by the end of 2026, subject to regulatory approvals and customary closing conditions.

The purchase moves a leading world-model developer inside a hardware vendor, at a time when simulated environments have become a standard training ground for humanoid and mobile robots.