AMD bets $8.2 billion on World Labs and physical AI

AMD is moving beyond AI chips with an $8.2 billion all-stock purchase of World Labs, a startup building spatial-intelligence and AI world models for robotics and simulation. The deal gives AMD a foothold in physical AI, while World Labs founder Fei-Fei Li joins as AMD’s executive vice president and chief scientist, reporting to Lisa Su. Founded in 2024, World Labs raised $1 billion earlier in 2026, making this AMD’s second-largest acquisition after its roughly $50 billion purchase of Xilinx.