Advanced Micro Devices Inc. today announced plans to buy World Labs Inc. for $8.2 billion in stock.
The move comes seven months after AMD backed a $1 billion funding round for the startup at a $5 billion valuation. The deal also included the participation of rival Nvidia Corp., which is poised to realize a significant return on investment. AMD expects to close the transaction by year’s end.
World Labs was founded in 2024 by renowned artificial intelligence researcher Fei-Fei Li. She is best known as the creator of ImageNet, an early AI training dataset designed for object recognition algorithms. The dataset facilitated the creation of AlexNet, the precursor to modern AI models.
World Labs develops spatial intelligence models, which are also known as world models. Such algorithms are designed to generate interactive three-dimensional environments. They lend themselves to, among other use cases, robot development.
Many industrial robots rely on onboard AI models to perform their work. Developers train such AI models by having them pilot a virtual robot in a simulated environment. During training, the algorithms are given sample tasks similar to the ones they will be expected to perform in the real world. They learn the optimal way of performing those tasks through trial and error.
World Labs’ world models can quickly generate simulated environments for robots. The company’s newest algorithm, Atlas, can generate a virtual replica of a factory or a warehouse based on a few photos. Furthermore, it’s capable of simulating moving objects such as conveyor belts. Atlas provides depth data that makes it easier for AI models to identify objects’ positions.
AMD has a significant presence in the robotics market. In 2022, it spent $50 billion to buy Xilinx Inc., a major supplier of field programmable gate arrays. Those are customizable processors that are widely used in robots.
More recently, AMD debuted a line of robot-optimized chips called the Ryzen AI Embedded X100 series. Each chip in the series contains a central processing unit, graphics processing unit and AI accelerators. The circuits ship in a ruggedized package designed to withstand high temperatures.
World Labs’ Atlas model also has applications beyond the robotics market. It can generate videos and images based on text prompts, as well embed visual effects in existing footage.
“Building the compute platforms for the next generation of AI requires a deep understanding of how models are evolving,” said AMD Chief Executive Lisa Su. “Fei-Fei and the World Labs team bring exceptional research leadership and model expertise. Together, we can use that insight to develop the hardware, software and systems that will power the next generation of AI and strengthen the open AI ecosystem.”
Li will become AMD’s executive vice president and chief scientist after the deal closes. According to the chipmaker, World Labs will continue to pursue AI research projects.