Amazon in Talks to Acquire AI Startup Decart for $7 Billion

Amazon is in talks to acquire Israeli artificial intelligence startup Decart in a deal valued at approximately $7 billion, according to a report by The Wall Street Journal, citing people familiar with the matter. An agreement could be reached soon, although negotiations may still collapse or another potential buyer could emerge. Decart develops software designed to reduce the cost of training AI models by improving the efficiency of chip utilisation.

In May, Decart raised more than $300 million in a funding round that included Nvidia as an investor, valuing the company at just under $4 billion. The reported acquisition discussions follow a proposed $6 billion deal with AI developer Anthropic that was abandoned last month after due diligence, according to Bloomberg. A potential acquisition by Amazon would represent a significant increase over Decart’s previous valuation and highlight the growing competition among technology companies to strengthen their AI capabilities.

Founded in 2023 by Israeli engineers Dean and Orian Leitersdorf, who are brothers, and Moshe Shalev, Decart is also developing world models called Lucy and Oasis. These technologies can generate and simulate realistic three-dimensional environments. The potential acquisition would give Amazon an opportunity to expand its AI technology portfolio, particularly in areas related to model training and advanced simulation, as major technology companies continue investing heavily in artificial intelligence.

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