AMD to Acquire World Labs for $8.2 Billion in Stock
AMD announced plans to acquire World Labs for $8.2 billion in stock, adding the spatial intelligence startup founded by Fei-Fei Li to its AI and robotics efforts. The deal is expected to close by year’s end.
The deal follows AMD’s participation seven months ago in a $1 billion funding round for World Labs at a $5 billion valuation, according to SiliconANGLE. Nvidia Corp. also participated in that round and is poised to realize a significant return on investment.
World Labs was founded in 2024 by Li, who is best known as the creator of ImageNet, an early AI training dataset designed for object recognition algorithms. The dataset facilitated the creation of AlexNet, the precursor to modern AI models. World Labs develops spatial intelligence models, also known as world models. These algorithms are designed to generate interactive three-dimensional environments and lend themselves to uses including robot development.
Many industrial robots rely on onboard AI models to perform their work. Developers train such AI models by having them pilot a virtual robot in a simulated environment. During training, the algorithms are given sample tasks similar to the ones they will be expected to perform in the real world, and they learn the optimal way of performing those tasks through trial and error. World Labs’ world models can quickly generate simulated environments for robots. Its newest algorithm, Atlas, can generate a virtual replica of a factory or a warehouse based on a few photos. It is also capable of simulating moving objects such as conveyor belts. Atlas provides depth data that makes it easier for AI models to identify objects’ positions.
AMD already has a significant presence in the robotics market. In 2022, it spent $50 billion to buy Xilinx Inc., a major supplier of field programmable gate arrays. Those are customizable processors that are widely used in robots. More recently, AMD debuted a line of robot-optimized chips called the Ryzen AI Embedded X100 series. Each chip in the series contains a central processing unit, graphics processing unit and AI accelerators. The circuits ship in a ruggedized package designed to withstand high temperatures.
World Labs’ Atlas model also has applications beyond the robotics market. It can generate videos and images based on text prompts, as well as embed visual effects in existing footage. “Building the compute platforms for the next generation of AI requires a deep understanding of how models are evolving,” AMD Chief Executive Officer Lisa Su said. “Fei-Fei and the World Labs team bring exceptional research leadership and model expertise. Together, we can use that insight to develop the hardware, software and systems that will power the next generation of AI and strengthen the open AI ecosystem.”
Li will become AMD’s executive vice president and chief scientist after the deal closes. According to the chipmaker, World Labs will continue to pursue AI research projects.
Editor's Summary
AMD plans to acquire World Labs for $8.2 billion in stock, adding spatial intelligence and world-model technology to its AI and robotics portfolio. The startup, founded by Fei-Fei Li, develops 3D simulation tools such as Atlas, which can generate factory or warehouse replicas from photos and support robot training. Li will join AMD as executive vice president and chief scientist after the deal, which AMD expects to close by year’s end.