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AMD acquires World Labs AI startup, upping the ante against Nvidia

The deal, which is expected to close by year's end, is worth $8.2 billion.

Two women in black hoodies—one from AMD wearing a World Labs hoodie, and one from World Labs wearing an AMD hoodie, smile at the camera while sitting a desk with papers to sign on it.
Image: Ars Technica
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The deal, which is expected to close by year's end, is worth $8.2 billion.

The short version

  • The deal, which is expected to close by year’s end, is worth $8.2 billion.
  • 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.

What happened

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.

Why it matters

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.

Summary by Nerd News Network. Read the full article at Ars Technica via the links above and below.

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