AMD announces acquisition of World Labs, Fei-Fei Li's AI laboratory, for US$8.2 billion
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AMD announces acquisition of World Labs, Fei-Fei Li's AI laboratory, for US$8.2 billion

AMD announced an agreement on Monday, the 28th, to acquire World Labs, an artificial intelligence (AI) laboratory established by researcher Fei-Fei Li. The total purchase price is US$8.2 billion, which is equivalent to approximately R$44.3 billion. Payment will be made entirely through shares of the chip manufacturer.

World Labs, headquartered in San Francisco, USA, specializes in developing world models, which are systems designed to simulate three-dimensional environments. This technology has potential applications in the development of robots, vehicles, and other AI solutions that need to interact with the physical environment. Previously, AMD had already invested in World Labs before formalizing the acquisition agreement.

With this transaction, Fei-Fei Li will take on the role of Chief Scientist at AMD and will also be appointed Executive Vice President of the company. The researcher has academic experience as a professor at Stanford and previously worked at Google, in addition to leading significant research in the field of AI.

Li's entry comes at a strategic time, as AMD seeks to strengthen its position in the competition against Nvidia for dominance in the processor market dedicated to AI. In a post on her social media on the same Monday (28), Li expressed appreciation for Lisa Su, referring to her as 'a great friend.' She stated: 'We are unwavering in our mission and even more excited to continue building a world-leading, enduring frontier research organization for decades to come.'

AMD communicated that World Labs will remain operational separate from its chip manufacturing segment until the transaction is finalized, which is expected to occur at the end of this year. The research conducted by the laboratory on next-generation models may also help AMD predict what functionalities its future AI chips should have in the coming years. This strategic approach allows the manufacturer to use World Labs' long-term research to plan ahead for the demands of its AI processors.

This US$8.2 billion deal constitutes the second largest acquisition made by AMD. It is surpassed only by the purchase of Xilinx, completed in 2022 for about US$50 billion (approximately R$270.5 billion). Furthermore, the acquisition marks AMD's biggest move to date in the AI-focused mergers and acquisitions sector.

The move is part of a context where large American technology corporations are intensifying their financial investments with the aim of attracting engineers and researchers specialized in AI, including the acquisition of companies in early stages of development. Last year, OpenAI acquired the AI device startup io, founded by Jony Ive, for approximately US$6.4 billion (about R$34.6 billion), aiming to integrate the renowned designer responsible for iPhone products into the group. Meanwhile, Nvidia invested a total of US$33 billion (about R$178.2 billion) in the AI chip manufacturer Groq and the open-source platform Hugging Face, acquiring assets from Groq in December and closing a deal for Hugging Face this month. Meta, on the other hand, allocated US$14 billion (about R$75.6 billion) in 2025 for a minority stake in Scale AI, which also resulted in the integration of the startup's founder, Alexandr Wang, into Meta, where he began managing a new AI division.

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AMD Reaches Market Capitalization of One Trillion Dollars
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AMD Reaches Market Capitalization of One Trillion Dollars

On Monday, the Nasdaq index reached a record close, driven by the successes of AMD and other major players in the artificial intelligence sector. Furthermore, improved market sentiment, linked to falling oil prices and lower yields on long-term US Treasury bonds, also had a positive impact.

Semiconductor company stocks showed significant growth: Intel and ARM Holdings rose by more than 12%, and the PHLX semiconductor index jumped by 4.3%. AMD closed 10% higher, achieving a market capitalization of $1 trillion for the first time.

CNBC reported that this major milestone was reached after a five-day upward trend, which increased the stock price by approximately a quarter. Meanwhile, CEO Lisa Su previously assured investors that AMD forecasts doubling data center sales by 2027. Nevertheless, the company still lags significantly behind Nvidia, whose fluctuations are now affecting entire indices.

Investors note signs of continued expansion in AI spending, despite warnings from leaders of major AI companies who triggered a global tech sell-off last week.

Interest Rate Hikes

The composite Nasdaq index rose by 2.26% and set a record close for the first time since June 2nd, while the S&P 500 increased by 1.49%, remaining close to its record, and the Dow Jones Industrial Average finished up 0.71%. The MSCI All-World Index rose by 1.31%, and European stocks grew by 1.02%.

Risk appetite remains strong, even with growing expectations of further rate hikes and debates over whether AI sector trading is outpacing itself.

Sima Shah, Chief Global Strategist at Principal Asset Management, noted: "Although synchronized rate hikes raise concerns about risk assets, stocks remain near record levels, supported by strong earnings growth."

She added that it is "important that central banks are raising rates to fight inflation, not to slow down economic activity, suggesting a gradual and limited tightening. While higher rates may hinder further multiple expansion, they are unlikely to put significant pressure on earnings or derail the overall bull market."

Central banks in most major economies are expected to raise rates again this year. Cautious forecasts from the US Federal Reserve last week led futures trading to price in a 55% probability of another hike in October, and a 91% probability of a hike by the end of the year.

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