Nvidia rival AMD to buy industry pioneer’s AI startup World Labs for US$8.2 billion

Advanced Micro Devices (AMD) will acquire AI startup World Labs, founded by Fei-Fei Li, in an $8.2 billion all-stock deal. The acquisition aims to advance research in physical AI systems, spatial intelligence, and emerging AI workloads, potentially shaping future demand for AMD's chips, software, and infrastructure. Li will join AMD as executive vice president and chief scientist. The deal is expected to close by the end of 2026.

AMD agreed to acquire World Labs, an AI research company led by Dr. Fei-Fei Li, for $8.2 billion in an all-stock deal. The acquisition aims to strengthen AMD's AI capabilities and compete with NVIDIA's Cosmos model. AMD previously invested in World Labs and values the company at a 62% premium. The deal follows AMD's recent agreement to acquire Taalas, a chip designer. According to AMD, the acquisition will enhance its AI hardware, software, and systems development.

AMD announced an $8.2B all-stock acquisition of World Labs, a startup focused on AI 'world models.' The deal, pending regulatory approval, aims to boost AMD's AI capabilities. AMD's stock is currently trading at $607.87, deemed 112.5% overvalued by GuruFocus, with a P/E ratio of 155.98x. The company's GF Score is 82/100, indicating strong performance but concerns over valuation.

AMD agreed to acquire AI startup World Labs, founded by Fei-Fei Li, in an all-stock deal valued at $8.2 billion. The acquisition, expected to close by 2026, aims to bolster AMD's AI research capabilities and challenge Nvidia's market dominance. Li will join AMD as chief scientist, focusing on advancing AI model research. World Labs develops 'world models' for spatial intelligence, with applications in robotics, simulations, and design.

Stock futures were flat on Monday night after equities fell due to rising Treasury yields. The Dow dropped 300 points, while the S&P 500 and Nasdaq Composite declined 0.8% and 0.9%, respectively. The 10-year Treasury yield rose above 5.2%, near 2007 levels. Investors await U.S. consumer confidence data and jobs report. AMD announced an $8.2B acquisition of World Labs, with shares unchanged after hours.

AMD agreed to acquire World Labs for $8.2B in an all-stock deal, aiming to advance AI hardware, software, and systems. World Labs, founded in 2024, specializes in spatial-intelligence models, or 'world models,' which simulate 3D environments. The acquisition is expected to close by year-end, pending regulatory approval, and will add Fei-Fei Li as AMD's executive vice president and chief scientist.