Amazon in talks to acquire AI startup Decart in $7 billion deal, report says

# Amazon in Talks to Acquire AI Startup Decart in Deal Valued at $7 Billion

Amazon is in discussions to acquire artificial intelligence startup Decart in a potential transaction valued at approximately $7 billion, according to a report by The Wall Street Journal. Citing people familiar with the negotiations, the newspaper reported that a deal could be finalized soon, although the discussions could still fall apart or another prospective buyer could emerge.

The potential acquisition would give Amazon access to Decart’s technology for improving the flexibility of AI computing infrastructure, along with its work on systems capable of generating and simulating three-dimensional environments. As technology companies race to secure computing resources and develop more advanced AI capabilities, Decart’s software and research could offer strategic value to Amazon’s cloud computing and AI businesses.

Founded in 2023 by Israeli engineers and brothers Dean and Orian Leitersdorf, along with Moshe Shalev, Decart has developed software that enables developers to switch between different AI chips. The technology addresses a growing challenge for AI developers as demand for computing power increases and companies seek greater flexibility in choosing the hardware used to train and run their models.

Decart is also developing world models known as Lucy and Oasis, which can generate and simulate realistic three-dimensional environments. Such technologies could support the development of AI systems capable of understanding and interacting with complex environments, expanding potential applications beyond conventional text-based tools.

The startup has attracted significant investor interest, with backers including Sequoia Capital, Benchmark and Radical Ventures. According to The Wall Street Journal, Decart has raised more than $400 million in venture funding and was valued at nearly $4 billion in May. A transaction at the reported $7 billion valuation would represent a substantial increase over that earlier figure.

The latest discussions follow an earlier reported attempt by Anthropic to acquire Decart for approximately $6 billion. The proposed transaction was expected to strengthen Anthropic’s computing infrastructure as demand for its AI products increased and the company invested heavily in expanding its computing capacity. However, Anthropic reportedly abandoned the acquisition after conducting due diligence. The development comes as Anthropic prepares for a potential initial public offering.

In May, Decart announced that it had raised $300 million in a funding round led by Radical Ventures. Nvidia, Atreides Management, Valor Equity Partners and Adobe Ventures participated, alongside existing investors Sequoia Capital, Benchmark and Zeev Ventures. The round valued the company at nearly $4 billion, up from $3.1 billion in August 2025, according to the Journal.

Amazon’s interest in Decart also follows its broader efforts to expand its presence in artificial intelligence and computing infrastructure. The company has invested in developing its own AI chips, including Trainium3, designed to support demanding AI workloads through Amazon Web Services (AWS).

AWS reportedly gave Decart early access to its Trainium3 chip in 2025 after meetings with the startup’s team impressed Amazon executives. Early access to specialized hardware could have helped Decart develop and optimize its software while providing Amazon with an opportunity to demonstrate the capabilities of its in-house AI chips.

For Amazon, acquiring Decart could potentially strengthen its position in the increasingly competitive AI infrastructure market. The startup’s chip-switching technology could complement AWS’s efforts to offer customers flexible computing options, while its world-model research could create opportunities in emerging areas of AI development. The precise strategic and financial terms of any potential transaction have not been disclosed.

The reported negotiations also fit into Amazon’s wider acquisition strategy. The company purchased MGM for approximately $6.5 billion in 2022 and announced a deal worth roughly $11 billion for Globalstar earlier this year, according to The Wall Street Journal. These transactions illustrate Amazon’s willingness to pursue major acquisitions that could expand its capabilities and support its long-term business priorities.

Earlier this month, Israeli news outlet Calcalist reported that Decart was in advanced negotiations to be acquired by a major technology company. The latest report identifies Amazon as a potential buyer, although the discussions remain subject to change and no completed transaction has been announced.

The possible acquisition comes at a time when technology companies are competing to secure AI talent, infrastructure and specialized software. As the cost of computing continues to influence the development of advanced models, Decart’s technology could become a valuable asset for a company seeking to combine AI software innovation with large-scale cloud infrastructure.

Whether Amazon completes the reported deal remains uncertain. If finalized, the acquisition would give the e-commerce and cloud computing giant a larger stake in AI infrastructure technology and emerging world models, while further highlighting the growing value of startups developing tools to support the next generation of artificial intelligence.