AI startup WorldLabs is seeking to raise $500 million at a $5 billion valuation, SiliconANGLE reported on Thursday, citing Bloomberg News.

The investors were not disclosed, but existing backers such as Nvidia, AMD, Adobe and Databricks are likely to participate, the report said. WorldLabs was founded by AI expert Fei-Fei Li (페이페이 리), a Stanford University professor. The company developed an algorithm called Marvel that generates 3D virtual environments.

Marvel, released in November last year, generates virtual environments based on text, images and video. It also supports users in creating 3D objects using simple geometric structures. The technology is expected to be used in architecture, robotics and the game industry.

While existing 3D graphics are rendered using polygon mesh processing, Marvel uses a new method called 3DGS to produce more precise graphics using millions of translucent points. It can also be converted into a collider mesh, a low-resolution hardware-friendly format, allowing it to be applied to a range of simulations, the company said.

WorldLabs recently released the Marvel API, and it is known that several companies have adopted it. If it secures the funding, WorldLabs is expected to focus on developing new diffusion-based world models and producing lightweight algorithms that reduce hardware requirements.