World Labs secures $1 billion AI funding from Nvidia, AMD, and Autodesk for spatial intelligence

Reviewed byNidhi Govil

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Fei-Fei Li's World Labs has raised $1 billion in a major funding round led by Nvidia, AMD, and Autodesk to advance spatial intelligence technology. The startup, valued at around $5 billion, develops world models that generate and reason about 3D environments. Autodesk's $200 million investment will drive collaboration on integrating AI into design workflows, starting with entertainment applications.

World Labs Closes $1 Billion AI Funding Round with Major Tech Backers

Fei-Fei Li's startup World Labs has secured $1 billion in a funding round that positions the company at the forefront of spatial intelligence development

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. The investment consortium includes semiconductor giants serving as Nvidia and AMD investors, along with software design leader Autodesk, Emerson Collective, Fidelity Management & Research Company, and Sea

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. While World Labs did not disclose its valuation, Bloomberg News reported in January that the startup was in discussions at approximately $5 billion, marking a significant jump from its $1 billion valuation when it emerged from stealth in 2024 with $230 million

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Source: Reuters

Source: Reuters

The Autodesk investment stands out as particularly strategic. The software giant committed $200 million and will serve as an advisor to World Labs, with plans to collaborate at the research and model level

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. This partnership aims to explore how world models can work alongside Autodesk's tools to enhance 3D workflows, starting with entertainment use cases

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How Spatial Intelligence Transforms AI Beyond Text and Images

Spatial intelligence represents a shift from traditional AI approaches that rely on 2D data like flat images or text. Instead, it enables machines to reason about how the 3D world works

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. Fei-Fei Li, widely known as the "godmother of AI," emphasized this distinction in a statement: "If AI is to be truly useful, it must understand worlds, not just words. Worlds are governed by geometry, physics, and dynamics, and reconciling the semantic, spatial, and physical is the next great frontier of AI"

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Source: SiliconANGLE

Source: SiliconANGLE

World Labs' foundational models can perceive, generate and interact with the 3D world, opening applications in robotics and virtual reality applications that extend far beyond current generative AI capabilities

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. Fei-Fei Li noted that as AI systems move closer to execution rather than analysis, their limitations are becoming less about reasoning in text and more about understanding and acting within physical environments

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Marble AI Model Drives Commercial Applications

World Labs launched its first product, the Marble AI model, in November, signaling its transition from research to commercialization

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. Marble enables users to generate 3D environments based on text, images, and videos, creating editable and downloadable 3D worlds

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Source: TechCrunch

Source: TechCrunch

A companion tool called Chisel allows users to refine these environments using natural language instructions

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One significant application lies in robotics software development. Many robots are powered by onboard AI models trained in simulated versions of their deployment environments. Marble can generate a virtual replica of a robot's operating environment and export it to third-party simulation tools

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. Job postings indicate World Labs plans to increase its focus on the robotics market, seeking specialists in SLAM (simultaneous localization and mapping) systems and 3D reconstruction—technologies robots use to navigate unfamiliar environments

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3D Design Tools Integration Shapes Entertainment and Beyond

The collaboration between World Labs and Autodesk could reshape how creators work across entertainment, architecture, and manufacturing. Daron Green, Autodesk's chief scientist, explained that customers might start with a world-model-based sketch in World Labs—such as an office layout—and then drill down on specific design aspects using Autodesk's technology

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. Conversely, designers might take an object created in Autodesk's platform and place it in a context generated through World Labs' prompts

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Autodesk, one of the biggest developers of 3D CAD (computer-aided design) software, underpins architectural, engineering, construction, manufacturing, and entertainment 3D workflows. The company is developing neural CAD, a new kind of generative AI model trained on geometric data that can reason about components and entire systems, generating working 3D models with an understanding of how designs would function in the real world

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. Green noted that different AI systems, including large language models, world models, and neural CAD, will likely be combined in the future to improve designs

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Competition Intensifies in World Models Market

World Labs operates in an increasingly competitive landscape. Google DeepMind and other startups are working on world models that process visual data from physical environments to develop advanced reasoning

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. Google DeepMind's Genie family of models can generate and simulate 3D environments similar to World Labs' Marble multimodal world model

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. Runway Inc., another world model startup, recently closed a $315 million investment that also included contributions from Nvidia and AMD

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Most companies building world models see gaming and interactive entertainment as an initial go-to-market strategy

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. However, the technology's potential extends to augmented reality, scientific discovery, and text-to-3D generation across multiple industries

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. As foundation models evolve to understand physical constraints like time and terrain, they could enable more sophisticated interactions between AI systems and the real world

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