US chipmaker Advanced Micro Devices (AMD) has entered into a definitive agreement to acquire World Labs, an AI model and research laboratory founded by Chinese-American computer scientist Li Feifei.
Latham & Watkins and Wilson Sonsini advised on the transaction. AMD announced the agreement on 28 September 2026.
The all-stock transaction is valued at around USD8.2 billion and is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions.
Following completion, World Labs co-founder and chief executive Li will join AMD as executive vice-president and chief scientist, reporting directly to chair and chief executive Lisa Su.
If completed, the deal would be AMD’s second-largest acquisition, behind its USD48.8 billion purchase of Xilinx in 2022. Through the acquisition, AMD aims to incorporate frontier model research more closely into its technology road map and develop computing platforms optimised for next-generation applications, including robotics, autonomous systems and simulation.
Latham & Watkins advised AMD, with a corporate team led by partners Tad Freese and Mark Bekheit. The team also included Grace Lee on tax; James Metz and James Robinson on compensation and benefits; Nineveh Alkhas on employment and labour matters; Robert Brown on data privacy and cybersecurity; Morgan Brubaker on intellectual property; Harrison White on insurance; Richard Kim on capital markets; Kelly Fayne, Mandy Reeves and Patrick English on US antitrust matters; Héctor Armengod, Philipp Studt and Stephanie Adams on antitrust matters outside the US; and Damara Chambers on regulatory matters.
Wilson Sonsini counselled World Labs, with a team led by partners Rezwan Pavri, Rich Mullen and Sachin Kohli. The team also included Marty Korman on mergers and acquisitions; Barath Chari on technology transactions; Matthew Staples on data, privacy and cybersecurity; Jonathan Zhu and Derek Wallace on tax; Brandon Gantus on employee benefits and compensation; Matt Gorman on employment; Maureen Ohlhausen and Ben Labow on antitrust and competition; Mike Casey and Jahna Hartwig on national security and trade; Tarek Helou on regulatory matters; and James McCann on real estate.
Before the agreement, AMD had invested in World Labs several times. According to AMD Ventures, its investment relationship with the AI company began with World Labs’ series B financing, after which the two companies deepened their ties through continuing technical and go-to-market collaboration. AMD also participated in World Labs’ USD1 billion funding round completed in February 2026.
Founded in 2024, World Labs develops spatial-intelligence models, also known as world models, capable of understanding, generating and simulating three-dimensional physical environments. Its technology also supports robotic learning and simulation.
