Chipmaker AMD and world models company World Labs announced that AMD will acquire the AI company by the end of the year, pending regulatory approval. The transaction is valued at $8.2 billion.

In 2024, computer vision scientist Fei-Fei Li founded World Labs with fellow researchers Justin Johnson, Christoph Lassner, and Ben Mildenhall, with $230 million in funding, some of which came from AMD.

The company began working on new world models, which are AI models that aim to provide a useful, predictive simulation of the physical world. Competing architectures exist (earlier this year, Ars interviewed World Labs co-founder Ben Mildenhall and others in the field about exactly that), but many involve training a model on vast amounts of video data.

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