Chipmaker AMD announced it is acquiring World Labs, a two-year-old startup specializing in physical AI, for $8.2 billion in an all-stock deal. The acquisition, announced this week, brings World Labs’ technology and founder Fei-Fei Li, a pioneer in AI, into AMD’s fold. Li will join AMD as Executive Vice President and Chief Scientist, reporting to CEO Lisa Su, according to fortune.com.
The deal combines World Labs’ expertise in AI and world models with AMD’s computing capabilities to advance AI applications in autonomous machines like robots and self-driving cars. AMD CEO Lisa Su highlighted the partnership’s potential to strengthen the open AI ecosystem. Fei-Fei Li, known for creating ImageNet, emphasized that focused hardware efforts are essential for AI efficiency and scale. Li also noted her longstanding relationship with Su, who was an early investor in World Labs, per fortune.com.
This acquisition positions AMD to better compete with Nvidia, which is also expanding into physical AI. AMD’s GPUs are critical for training and running AI models, and integrating World Labs’ technology could accelerate development in emerging AI fields. The deal underscores the growing importance of AI hardware innovation to support new AI-driven applications beyond traditional digital environments, as reported by fortune.com.
Fei-Fei Li will take on the role of Executive Vice President and Chief Scientist at AMD, reporting directly to CEO Lisa Su. The $8.2 billion all-stock transaction marks one of the largest AI-related acquisitions this year, according to fortune.com.