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AMD announced the acquisition of World Labs, an AI research lab co-founded by prominent researcher Dr. Fei-Fei Li, in an all-stock deal valued at approximately $8.2 billion. World Labs, which launched in 2024 and reached a $1 billion valuation within months, developed a world generation model called Marble that enables users to create interactive 3D environments from text prompts. The acquisition represents a major strategic bet by AMD on generative AI capabilities and positions the company to compete more aggressively in the rapidly expanding AI software and applications market. The deal underscores the intense competition among semiconductor and technology companies to acquire AI talent and capabilities, particularly as the field increasingly moves beyond large language models toward multimodal and world-generation systems. By bringing on Fei-Fei Li and the World Labs team, AMD gains both cutting-edge research capabilities and a commercial product already in development, strengthening its position in the competitive AI landscape.