Israeli AI Startup Decart Rejects US Relocation Demand in Anthropic Deal Talks

Negotiations between U.S. artificial intelligence company Anthropic and Israeli startup Decart for a potential $6 billion acquisition have collapsed. Sources close to Decart indicate that Anthropic's insistence on relocating a significant portion of the startup's operations, including its founders and key personnel, from Tel Aviv to San Francisco was a primary sticking point. Decart, which employs around 100 specialists focused on AI model research and development, reportedly refused to move its core operations and intellectual property to the U.S., preferring to maintain its development center in Israel.

However, other reports suggest Anthropic itself walked away from the deal late in the process following due diligence. Potential reasons cited include the results of technical and commercial analyses of Decart, and whether its technologies met Anthropic's expectations. It's also possible Anthropic decided to develop the necessary technologies in-house or acquire them elsewhere at a lower cost.

The talks had progressed to the signing of a letter of intent, but a final agreement was not reached. This stage typically allows the buyer to withdraw without substantial penalty. The breakdown occurred as Anthropic prepares for a potential initial public offering (IPO), with market valuations potentially reaching $2 trillion.

If the acquisition had succeeded, it would have been one of the largest purchases of an Israeli AI startup, potentially yielding billions for Decart's founders, brothers Dean and Ori Offer, and Moshe Shalev. Neither Anthropic nor Decart has officially commented on the reasons for the negotiations' termination.