AI Giant Anthropic Abandons $6 Billion Deal for Israeli Startup Decart

Global artificial intelligence leader Anthropic has reportedly withdrawn from a massive $6 billion acquisition deal for the Israeli startup Decart AI. The acquisition, which would have been Anthropic's largest ever, was called off after weeks of advanced negotiations and due diligence, according to a Bloomberg report. While the full acquisition is off the table, sources suggest the companies may explore alternative collaborations, such as a financial investment by Anthropic or Decart becoming a vendor to Anthropic. Representatives from both companies declined to comment on the reports.

Decart AI, founded just three years ago, had previously raised approximately $450 million, including a $300 million round in May at a valuation of around $4 billion. Notable investors include Sequoia, Benchmark, Radical Ventures, and Nvidia. The startup specializes in AI infrastructure and optimization technologies, aiming to make chips run more efficiently, thereby reducing AI model training costs and addressing computing capacity limitations.

Among Decart's key developments are the Lucy model for real-time video editing and the Oasis model for creating simulation environments for robotics and autonomous driving systems. The May funding round, led by Radical Ventures and including Nvidia, Adobe Ventures, Sequoia Capital, and Benchmark, valued the company at nearly $4 billion.

The deal's cancellation is a disappointment for Israel's tech sector, as the acquisition was expected to lead to Anthropic establishing its first development center in the country. However, the US-based AI firm still plans to expand its marketing and sales operations in Israel in the near future.