AMD has announced it is acquiring World Labs, an artificial intelligence research lab co-founded by prominent researcher Dr. Fei-Fei Li, in an all-stock arrangement valued at roughly £6.4 billion. The agreement marks one of the chipmaker’s most significant moves into advanced AI research, bringing a high-profile team and a fast-growing startup under its wing.
World Labs was launched in 2024 and reached a valuation of £790 million within a matter of months. The company introduced its first commercial product in 2025, a world generation model named Marble that allows users to create interactive 3D worlds from a single prompt. That technology positions the startup at the intersection of generative AI and immersive digital environments.
What the Acquisition Involves
The transaction is structured as an all-stock deal and is expected to close by the end of the year. As part of the agreement, Dr. Fei-Fei Li will become executive vice president and chief scientist at AMD, reporting directly to AMD chief executive Lisa Su. The move places one of the field’s best-known researchers in a senior leadership role at the company.
Following the completion of the deal, the World Labs team is set to continue focusing on advancing AI model research. This suggests AMD intends to preserve the startup’s research direction rather than fully absorb its efforts into existing product lines, allowing the group to maintain momentum on its core work.
Why the Deal Matters for AMD
The acquisition reflects the intensifying competition among semiconductor and technology firms to secure both talent and intellectual property in artificial intelligence. By bringing World Labs into its structure, AMD gains access to specialised expertise in world generation models and 3D content creation, areas that are drawing increasing attention across the industry.
The elevation of Dr. Fei-Fei Li to a senior scientific role signals AMD’s ambition to strengthen its long-term research capabilities. Her appointment as chief scientist, alongside the retention of the existing World Labs team, indicates that the company is prioritising sustained investment in foundational AI development.
World Labs’ rapid rise, from its 2024 launch to a billion-dollar valuation and the release of Marble in 2025, underscores the pace at which the AI sector has been evolving. The startup’s flagship model, capable of turning text prompts into interactive three-dimensional worlds, represents the type of technology that has become central to the next phase of generative AI applications.
The deal is valued at approximately £6.4 billion and is expected to close by the end of the year.
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