AMD to Buy AI Company World Labs for $8.2 Billion

AMD stock is up 277% over the past 12 months. (Andrej Ivanov / AFP via Getty Images)

Key Points

• Advanced Micro Devices agreed to buy artificial intelligence research company World Labs in an $8.2 billion all-stock deal.
• World Labs, co-founded by AI researcher Fei-Fei Li, builds frontier models that generate three-dimensional environments.
• Advanced Micro Devices stock was flat in after-hours trading following the announcement.

Advanced Micro Devices is making another acquisition—this time of an artificial intelligence research company.

AMD said on Monday it has agreed to buy AI research company World Labs in an $8.2 billion all stock deal. World Labs, co-founded by AI researcher Fei-Fei Li, builds frontier models that generate three dimensional environments.

“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.” AMD CEO Lisu Su said in a the news release on Monday.

AMD stock was flat in after-hours trading following the announcement.

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AMD is an AI hardware company with a market value of close to $1 trillion. The semiconductor maker’s stock has soared 277% over the past 12 months as demand for the hardware needed to power AI, like chips, has boomed.

The company has made several purchases as it also invests heavily in this technological revolution. AMD bought semiconductor company Xilinx in 2022 for about $50 billion. In 2024, AMD agreed to buy compute-infrastructure maker ZT Systems for nearly $ 5 billion. And in June, AMD said it has acquired memory-optimization company MEXT for an undisclosed amount.

Write to Angela Palumbo at angela.palumbo@dowjones.com

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