Amazon is reportedly in negotiations to purchase the Israeli-based artificial intelligence startup Decart for around $7 billion, as per a Sunday report from The Wall Street Journal, which cites sources close to the discussions. This acquisition could be finalized soon, although there remains a possibility that the talks may not reach a conclusion.
These discussions signify a shift in Decart's quest for a buyer. Initially, Nvidia showed interest in acquiring the startup, but by August, Anthropic was identified as the leading contender. However, Anthropic withdrew from the negotiations in September after reviewing the company’s financials, leaving Decart on the lookout for a new suitor.
Amazon appears poised to take over the opportunity that Anthropic passed on. The two companies already have an existing relationship, as Amazon Web Services (AWS) is a vital customer for Decart. Reports from CTech in May indicated that Amazon had integrated itself into Decart’s clientele as the startup continued to grow its AI infrastructure offerings. Additionally, the Journal noted that AWS provided Decart with early access to Amazon's upcoming Trainium3 AI chip in 2025, following positive feedback on the startup's founders.
Founded in 2023 by Dean and Orian Leitersdorf alongside Moshe Shalev, Decart specializes in creating technology that enhances the efficiency of AI models and facilitates seamless transitions between various chip manufacturers. This software aims to help businesses optimize the computing power they can achieve from their existing hardware, a crucial service as the AI sector grapples with rising infrastructure expenses and seeks to lessen its reliance on Nvidia’s prevalent role in AI accelerators.
Decart is also innovating AI systems that can generate interactive environments and videos in real-time. Notable products include Lucy, capable of real-time video editing, and Oasis, a model that creates simulated environments. The company gained significant international recognition with Oasis, a dynamic game that produces video content based on user interactions.
The integration of Decart's technology could bolster Amazon's competitive stance in the AI infrastructure domain. By developing its Trainium chips as counterpoints to Nvidia’s products, Amazon could substantially benefit from software that makes it easier to manage AI models efficiently across various processors, thereby enhancing its cloud platform’s appeal. Acquiring Decart would also give Amazon direct access to proven technology that aligns with its own computing ecosystem.
The flexibility of Decart’s technology to work across multiple chip brands is particularly significant now, as major tech companies are working to decrease their dependence on Nvidia—whose processors are at the heart of the AI surge. The primary challenge lies not only in acquiring chips but also in optimizing the use of these costly computing resources. Although Decart’s solutions address this issue, its commercial operations currently remain modest compared to the proposed acquisition price.
The estimated $7 billion acquisition would reflect a notable rise from Decart’s latest publicly recorded valuation. In May, Decart secured $300 million at a valuation estimated at roughly $4 billion, in a funding round led by Radical Ventures alongside Nvidia. In total, the startup has raised about $450 million.
The process surrounding the potential sale has been notably dynamic. Reports from August suggested Nvidia was nearing a deal with Decart until another offer surfaced. Anthropic later expressed serious interest, with expected valuations ranging from $6 billion to $7 billion for the deal. However, negotiations fell through after Anthropic conducted its due diligence, although the reasons for this decision were not disclosed.
While the collapse of the Anthropic agreement did not diminish interest in Decart’s technology, it created a layer of uncertainty regarding the startup’s future as an independent entity. An acquisition by Amazon would assure that this technology falls under the umbrella of a leading cloud services and chip manufacturer rather than a firm focused solely on AI model development.
For Amazon, a deal valued at approximately $7 billion would rank as one of its largest acquisitions in recent memory. It previously acquired the film and television studio MGM for about $6.5 billion in 2022 and announced an approximately $11 billion acquisition of satellite company Globalstar this year, aimed at bolstering its satellite initiatives to compete with SpaceX's Starlink.
