06-15-2026SUBSCRIBER EXCLUSIVE

Inside Fei-Fei Li’s $1 billion new AI company, World Labs

The next frontier for AI? Understanding the real world, not just the digital one. World models are replacing LLMs as the next wave of AI investment and hype—and Fei-Fei Li’s World Labs has first-mover advantage.

Walking into World Labs—the San Francisco startup cofounded by Fei-Fei Li, known in tech circles as the “godmother of AI”—visitors are met with a wall tiled in rainbow hues. A grand piano beckons at the end of the deep, sunlit lobby. Chair-size iridescent spheres rest against the walls, as if a giant forgot to pick up his toys. But around the corner,........

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