AMD announced an all-stock acquisition of AI startup World Labs valued at approximately $8.2 billion. Upon closing, expected before the end of 2026 pending regulatory approval, World Labs co-founder and CEO Fei-Fei Li will join AMD as Executive Vice President and Chief Scientist, reporting directly to CEO Lisa Su. Founded in 2024 and headquartered in San Francisco, World Labs develops spatial intelligence models that generate and simulate interactive 3D environments from text, image, and video inputs. The company completed a $1 billion funding round earlier this year and offers Marble, a product targeting entertainment creation and robot training simulation.