AMD is acquiring AI company World Labs in a deal worth more than $8 billion

AMD announced the acquisition of World Labs, an AI research lab co-founded by Dr. Fei-Fei Li, in an all-stock deal worth approximately $8.2 billion. The deal marks a significant expansion of AMD's presence in the AI market. World Labs, which was founded in 2024, launched its first commercial product, a world generation model, despite being valued at just $1 billion just months after its inception.