AMD to acquire Fei-Fei Li's World Labs in $8.2 billion all-stock deal

AMD has agreed to acquire World Labs, the AI research lab led by Fei-Fei Li, in an all-stock deal valued at approximately $8.2 billion. The transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions. The release does not give a share count or exchange ratio.

Li will join AMD as executive vice president and chief scientist, reporting to CEO Lisa Su, following the close. Justin Johnson and Ben Mildenhall will work with Li to continue leading the World Labs team as it joins AMD. AMD says the team will continue to focus on AI model research.

AMD describes World Labs as a developer of "spatial-intelligence models that generate, reconstruct and simulate interactive 3D environments from text, image and video inputs". AMD's stated rationale is that 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 two companies already had ties. Li wrote that Su "was an early investor and believer in our mission". Nvidia, AMD's biggest rival, is also among World Labs' backers.

AMD shares closed Monday down nearly 4% at $608.14.