AMD to buy Nvidia-backed World Labs for about $8.2 billion in stock

AMD is paying about $8.2 billion in stock for Nvidia-backed World Labs. The startup works on AI that can understand and create 3D spaces. Its leader, Fei-Fei Li, becomes AMD's chief scientist and will report to the company's chair and CEO. Nvidia and AMD both invested in World Labs in February. SiliconANGLE valued the startup at about $5 billion at that time. World Labs' backers, including Nvidia, stand to receive AMD shares. Nvidia has not disclosed the size of its stake. Nvidia also develops AI models for physical environments. Its Cosmos model helps Samsung, LG and others build robots. University of Washington professor emeritus Pedro Domingos criticized the sale as 'acquihire bait.' Li said the lab's mission continues. Co-founders Justin Johnson and Ben Mildenhall will remain with the team inside AMD. Regulators still need to approve the deal, which is expected to close by year's end.