AMD has agreed to acquire World Labs, an AI start-up focused on models that simulate the physical world, in a deal valued at $8.2 billion and expected to close by the end of 2026, subject to regulatory approval. The purchase adds research expertise and technology that could help AMD compete with Nvidia, which leads in AI computing and related robotics tools.

Founded in 2024 by computer vision scientist Fei-Fei Li and fellow researchers, World Labs raised $230 million, including investment from AMD. Its Marble tool creates small 3D environments that can be used in film and game production, while the company’s models may also support synthetic data for training robots. Li is set to become AMD’s executive vice-president and chief scientist, and co-founders Justin Johnson and Ben Mildenhall will continue leading the World Labs team within AMD.