Lisa Su, chair and chief executive officer of Advanced Micro Devices Inc. (AMD), holds up the AMD Ryzen AI Halo, an AI developer platform, during an AMD news conference ahead of the annual Consumer Electronics Show in Las Vegas, Nevada, on Jan. 5, 2026.
Caroline Brehman | AFP | Getty Images
AMD announced on Monday that it has entered into an agreement to acquire World Labs, a San Francisco-based AI lab developing a kind of model called a world model, which can be used to simulate 3D environments.
AMD said on Monday that the lab was acquired for about $8.2 billion in an all-stock transaction. The chipmaker had previously invested in World Labs.
AI researchers hope that world models can help develop robots and other physically-grounded artificial intelligence applications.
World Labs was founded by AI researcher Fei-Fei Li, who is widely seen as an AI pioneer and previously worked for Google.
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