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World Labs' team will become the nucleus of AMD's AI models team — AMD's CEO

5 moments: why AMD is paying $8.2B in stock for a 2-year-old model lab, why World Labs needs more compute, and why Lisa Su says AI is still in its early innings

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Scuttlebutt
Sep 29, 2026
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Bloomberg Talks · Sep 28, 2026

With Lisa Su, Chair, President and CEO of AMD · Fei-Fei Li, Co-Founder and CEO of World Labs

World Labs' team will become the nucleus of AMD's AI models team — AMD's CEO

AMD is buying World Labs, a company founded in 2024, in an all-stock deal worth $8.2 billion.

Most of the AI build-out has centered on large language models. World Labs builds world models, AI that generates 3D scenes and trains robots, and AMD plans to make its team the core of a new AI models group that designs alongside AMD's chips.

"And as our company grows, so is our ambition, so is our need for compute."

Lisa Su, Chair, President and CEO of AMD, and Fei-Fei Li, Co-Founder and CEO of World Labs, on Bloomberg Talks. AMD was an early investor in World Labs, and Li described two releases in two years, Marble and Atlas, plus an acquisition to add robotics talent.

The full interview is covered here so you can skip it.

Here are the 5 moments that matter.


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Key Takeaways

  • AMD wants to understand AI end to end, from chips to models, to build better systems

  • AMD was an early investor in World Labs before agreeing to buy it

  • World Labs' need for compute grew with its ambition, Li said

  • The deal is $8.2B, all stock

    • World Labs' team will become the nucleus of AMD's AI models team

  • World Labs is betting beyond language models, on spatial and physical intelligence for robotics, design and healthcare

  • Li said the future of AI is software and hardware developed together

1. Why AMD Is Buying

The studio anchor said AMD shares jumped in after-hours trading when the news crossed and then settled back to flat on the day. Bloomberg Tech's host spoke to both chief executives.

Su said the deal is about talent and the full stack

"Today is a super exciting day." — Lisa Su

She said she has known Li for a long time and respects her as a researcher and a visionary, and that AI is still in its very early innings.

"And what's becoming more and more clear is that the interaction between the hardware and the software and the systems and the model layer are such that the more you understand end-to-end the better system you're going to build." — Lisa Su

She said AMD is acquiring World Labs to get access to the team Li has built and to combine it with AMD's hardware, software and systems.

2. From Investor to Owner

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