Fei-Fei Li’s startup World Labs just landed a massive $1 billion funding round, including a $200 million investment from Autodesk, the software design giant. Other backers include AMD, Emerson Collective, Fidelity, and Nvidia.

The startup, which first emerged from stealth in 2024 with $230 million at a $1 billion valuation, hasn’t revealed whether this latest round increased its valuation. Reports last month suggested World Labs might be aiming for a $5 billion valuation.

A New Partnership With Autodesk

The collaboration between World Labs and Autodesk is focused on integrating World Labs’ AI-driven “world models” with Autodesk’s 3D design tools. Initially, the partnership will explore applications in entertainment and media, but the potential goes far beyond that.

World Labs’ first product, Marble, released last November, allows users to create editable, downloadable 3D environments. Autodesk, a leading developer of 3D CAD software, supports industries ranging from architecture and construction to manufacturing and entertainment, making this partnership a natural fit.

As Li put it:

“Autodesk has long helped people think spatially and solve real-world problems, and together, we share a clear purpose: building physical AI that augments human creativity and puts more powerful tools in the hands of designers, builders, and creators.

How the Technology Could Work

Autodesk will also serve as an adviser to World Labs, and the companies plan to collaborate at the “research and model level.”

Daron Green, Autodesk’s chief scientist, explained that the partnership is still in its early days. He envisions workflows where:

• Designers start with a World Labs 3D sketch (e.g., an office layout) and then refine individual components using Autodesk tools.
  
• Conversely, an object created in Autodesk software could be placed into a fully interactive 3D environment generated by World Labs.
  

Green emphasized that data sharing between the companies is not part of the agreement — the focus is on compatible workflows, not exchanging proprietary information.

Entertainment as the First Playground

Most companies developing world models, including Google DeepMind and Runway, see gaming and interactive media as the first market for this technology. Autodesk already works with major media production companies and has been training models for character animation — a natural precursor to World Labs’ immersive environments.

Green explained:

“You’re not just animating the dog, but giving it a world within which it can now interact. There’s a physical understanding in the model.”

This capability opens up new creative possibilities in animation, game design, and virtual production, where characters and objects respond realistically to physics and terrain.

Extending AI Beyond Individual Designs

Autodesk is already pushing generative AI into its software portfolio with “neural CAD” — AI models trained on geometric data that can reason about components and entire systems. These models can generate working 3D designs, not just images.

World Labs’ models could take this a step further, moving from individual design files to fully realized digital representations of the physical world.

Li highlighted the broader vision:

“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.”

Green also envisions a future where large language models, world models, and neural CAD work together to accelerate design workflows and creativity across industries.

Why This Matters

This funding round and partnership highlight a major trend in AI: moving beyond 2D outputs (images and text) into interactive, spatially aware 3D environments. For designers, architects, and creators, this could redefine how digital workflows interact with the physical world.With Autodesk’s industry reach and World Labs’ cutting-edge AI, the future of immersive, AI-powered 3D design may be closer than we think.