AMD takes an $8 bln leap at Nvidia
AMD•AMD said it would acquire AI startup World Labs in an all-stock deal valued at $8.2 billion. The deal is among several intended to help AMD combine chips and software for robotics, a strategy that could narrow its profitability gap with Nvidia.
1. AMD buys World Labs
AMD is using its stock to acquire World Labs for $8.2 billion. Co-founded by AI pioneer Fei-Fei Li, the startup develops “world models” that can help train robots by building working representations of three-dimensional reality.
2. Building a robotics business
The acquisition joins AMD’s deals for Taalas, ZT Systems and Silo AI, which could help it combine chips, systems, software and models. Robotics could be a $2.5 trillion market by 2035, JPMorgan estimates, while chips and software account for roughly 6% of a robot’s bill of materials.
3. Competition with Nvidia
Nvidia’s Omniverse platform has a lead in the market, and the company’s CUDA software has helped make it an industry standard for training AI models. The strategy could help AMD build a profit engine, but its success is uncertain.
