Fei-Fei Li’s World Labs Secures $200M From Autodesk in Massive $1B Funding Round—AI’s Next Big Leap Into the Physical World

In a move that could reshape the future of digital design and artificial intelligence, Fei-Fei Li’s groundbreaking startup, World Labs, has just secured a $200 million investment from Autodesk, the global leader in 3D CAD software. This funding is part of an eye-popping $1 billion round that also includes tech giants like AMD, Nvidia, Emerson Collective, and Fidelity, signaling massive confidence in World Labs’ vision.

World Labs, which burst onto the scene in 2024 with a $230 million seed round at a $1 billion valuation, is now reportedly eyeing a staggering $5 billion valuation as it accelerates its mission to build “world models”—AI systems capable of generating, understanding, and reasoning about immersive 3D environments. The startup’s first commercial product, Marble, launched in November 2025, already allows users to create editable, downloadable 3D worlds, hinting at the transformative potential of its technology.

But what makes this partnership with Autodesk so significant? For starters, Autodesk is the backbone of industries ranging from architecture and engineering to entertainment and manufacturing. Its software is used by millions of professionals to design everything from skyscrapers to video game worlds. By investing in World Labs, Autodesk is not just betting on a promising startup—it’s positioning itself at the forefront of the next wave of spatial AI.

The collaboration will see the two companies exploring how World Labs’ world models can integrate with Autodesk’s suite of tools, starting with entertainment and media applications. Imagine designing a virtual office layout in World Labs’ platform, then seamlessly refining the desk design using Autodesk’s precision tools. Or taking a 3D object created in Autodesk’s software and placing it into a dynamic, AI-generated environment from World Labs. The possibilities are endless.

Autodesk’s Chief Scientist, Daron Green, emphasized that the partnership is still in its early stages, but the potential is clear. “You could anticipate us consuming their models or them consuming our models in different settings,” Green said, hinting at a future where AI systems work together to create richer, more realistic digital worlds.

This isn’t just about entertainment, though. Autodesk is also developing “neural CAD,” a cutting-edge AI model trained on geometric data that can generate functional 3D designs. By combining this with World Labs’ world models, the two companies aim to create holistic digital representations of the physical world—ushering in a new era of AI-driven design and creativity.

Fei-Fei Li, the visionary behind World Labs, summed it up perfectly: “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.”

With this massive funding round and strategic partnership, World Labs is poised to lead the charge in building AI that doesn’t just process information but truly understands and interacts with the world around us. The future of design, entertainment, and even how we interact with digital spaces is about to get a whole lot more immersive—and World Labs is at the center of it all.

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