AMD pays $8.2 billion in stock for Fei-Fei Li's World Labs

What AMD signed

Advanced Micro Devices said on Monday 28 September that it will buy World Labs, the San Francisco AI lab founded by the Stanford computer scientist Fei-Fei Li, in an all-stock deal valued at about $8.2 billion, expected to close by the end of 2026 subject to regulatory approvals. Li will join AMD as executive vice president and chief scientist, reporting to the chair and chief executive, Lisa Su. ^[2]

AMD's current report, filed the same day, gives the terms. The merger agreement was signed on 26 September, and the price is to be paid in AMD common stock to World Labs' holders, 'subject to customary adjustments'. The report says 'the number of shares to be issued in connection with the Acquisition is not known': it will be set by AMD's volume-weighted average price over the ten trading days ending two days before closing. The shares will be issued under the Securities Act exemption for private placements, and 'no public solicitation or advertisement will be made'. ^[1]

World Labs said Justin Johnson and Ben Mildenhall, its co-founders, will keep leading its team inside AMD. CNBC reported that AMD plans to keep World Labs separate from its chipmaking business until the deal closes, and Silicon Republic reported that the lab's team of about 70 people will join. ^{[3, 5, 6]}

What World Labs makes

In AMD's words, World Labs 'develops spatial-intelligence models that generate, reconstruct and simulate interactive 3D environments from text, image and video inputs, as well as technology for robotic learning and simulation.' Its first product, Marble, builds 3D worlds from images or text; TechCrunch reported it is pitched for entertainment and for simulated environments to train robots. ^{[2, 4, 6]}

The two companies were already working together. World Labs said its 'deep technical partnership' with AMD began last year, 'starting with model training and inference optimization on AMD GPUs'. Su said building the next computing platforms 'requires a deep understanding of how models are evolving'; Li said joining AMD will give her team 'the resources and engineering depth to accelerate our research'. ^{[3, 2]}

The price, beside AMD's own record

AMD's quarterly report for the three months to 27 June counts 1,632 million common shares outstanding. The last time it paid partly in stock, for ZT Systems in March 2025, the report says the total purchase consideration was $4.4 billion, of which $860 million was in AMD shares, about 8 million of them. CNBC reported that World Labs is AMD's second-largest acquisition, after the roughly $50 billion it paid for Xilinx in 2022. ^{[7, 5]}

Silicon Republic reported that World Labs raised $1 billion earlier this year in a round backed by Nvidia, AMD and Autodesk among others, at a reported $5 billion valuation, and that Autodesk put in $200 million and took an advisory role. CNBC set the deal beside Nvidia's combined $33 billion for the chipmaker Groq's assets and the open-source platform Hugging Face. ^{[6, 5]}

Who already carries World Labs on the record

Two cloud providers name it in their own filings. CoreWeave's first-quarter release of 7 May names World Labs in the line 'Partner of choice for leading AI pioneers and enterprises'. Nebius, in a report furnished on 12 February, said: 'We are working with World Labs, which is building the next frontier of generative AI where models can understand and interact with the world'. ^{[8, 9]}

One listed fund holds its shares. The BlackRock Science and Technology Trust's portfolio report for 30 June carries 19,213 World Labs Series C shares valued at $6,030,576 and 29,558 Series C Prime shares valued at $9,939,469, both at level 3, the category for assets valued without a market quote; together they are under 1 percent of the trust's $1.89 billion of net assets. ^[10]

What settles it next

The approvals and the closing, which AMD expects by the end of 2026; the number of shares, which the formula in the current report fixes only at closing and a later AMD report will count; and the portfolio reports of the holders, which will show the preferred shares turned into AMD stock. None of the documents gives a date for the regulators. ^{[1, 2, 10]}

Who it reaches

AMD directly, as the buyer paying in its own shares. Nvidia and Autodesk as investors in World Labs' round, as reported, and Nvidia as the rival TechCrunch compares; CoreWeave and Nebius as cloud providers whose filings named World Labs; and the BlackRock Science and Technology Trust as a holder whose preferred shares the deal would turn into AMD stock at closing. ^{[1, 6, 4, 8, 9, 10]}