AMD agrees to buy World Labs; Fei-Fei Li set to join its AI push

AMD has agreed to buy World Labs, the AI research company founded by Fei-Fei Li, in an all-stock transaction valued at about $8.2 billion. World Labs builds “world models”—systems that can turn text, images, and video into interactive 3D environments—an approach meant to help AI understand space and train robots in simulations before they operate in the real world. If the deal closes, it will give AMD more than a promising AI product: it will bring model researchers closer to the engineers designing its chips, software, and server systems, potentially helping it anticipate the computing needs of newer forms of AI. Li will become AMD’s executive vice president and chief scientist after the deal closes, expected by the end of 2026 subject to approvals, while the World Labs team continues its research.