AI Deal Collapse: Anthropic Abandons $6 Billion Decart Acquisition

Negotiations for the acquisition of Israeli AI startup Decart by Anthropic, valued at $6 billion, have collapsed. The deal, which had progressed through advanced due diligence and a letter of intent, was reportedly called off by Anthropic. While the exact reasons remain undisclosed, sources suggest a key sticking point was Anthropic's demand to relocate Decart's core operations and talent to San Francisco. Decart's founders, brothers Dean and Oryan Leitnerdorf and Moshe Shilo, reportedly resisted this move, preferring to keep the company based in Tel Aviv.

Anthropic's request aimed to transfer significant talent and potentially intellectual property to California, aligning with the trend of major AI companies like OpenAI and Google DeepMind concentrating their development efforts in San Francisco. Decart, which initially focused on optimizing language models for increased processing power on any chip before developing its own models, employs around 100 people at its Israeli development center. These employees were expected to relocate to California under Anthropic's proposed terms.

Another potential factor contributing to the deal's failure is Anthropic's impending initial public offering (IPO), expected within weeks and aiming for a $2 trillion valuation. Concerns may have arisen about undertaking a major acquisition so close to the IPO, potentially impacting stock value or creating complications with existing shareholders. It is possible both companies decided to postpone acquisition discussions until after Anthropic's market debut.

Despite the deal's collapse, neither party is expected to face penalties, as the agreement had not yet moved beyond the letter of intent stage to final signing and closing. Representatives for both Anthropic and Decart declined to comment on the matter.