AMD announced a definitive agreement to acquire AI research startup World Labs for approximately $8.2 billion. The all-stock deal was announced on September 28, 2026, and is expected to close by year-end, subject to regulatory approval.
World Labs, co-founded by AI pioneer Dr. Fei-Fei Li, specializes in spatial intelligence and AI models that generate and simulate 3D environments. AMD aims to bring AI model research closer to its hardware development and strengthen its position in the AI chip market against rivals such as Nvidia.
Dr. Li will join AMD as executive vice president and chief scientist, reporting to CEO Dr. Lisa Su. AMD shares fell approximately 3.6% following the announcement. Share-price declines are a common reaction to potential shareholder dilution from all-stock deals.