Amazon in Talks to Acquire Israeli AI Startup Decart for $7 Billion
Translated & summarized from Calcalist by baba
Amazon is reportedly in talks to acquire Israeli AI startup Decart for around $7 billion, a deal that would be one of the largest exits in Israeli tech history. Decart, founded in 2023, has developed technology for efficient AI model operation and switching between chip manufacturers, addressing the high demand for computing power and reducing reliance on Nvidia. The acquisition could significantly boost Amazon's AI infrastructure capabilities. Negotiations are ongoing, with no final agreement yet reached.
The story in 6 lines · by baba
- Amazon is reportedly negotiating to acquire Israeli AI startup Decart for approximately $7 billion.
- Decart, founded in 2023, specializes in technology for efficient AI model operation and chip flexibility.
- The potential acquisition comes amid a global race for computing power and efforts to diversify AI chip reliance.
- Decart has raised over $400 million from prominent venture capital firms.
- Amazon's cloud division, AWS, has previously engaged with Decart, granting early access to its AI chip.
- If finalized, the deal would be one of the largest exits in the Israeli high-tech sector.
Amazon is reportedly in negotiations to acquire the Israeli artificial intelligence startup Decart for approximately $7 billion, according to sources familiar with the matter cited by The Wall Street Journal. The deal could be finalized soon, provided negotiations do not falter and no competing bidder emerges. If completed, this acquisition would rank among the largest exits in the history of the Israeli tech industry.
Decart, founded in 2023 by brothers Dean and Orian Leiterdorf and Moshe Shilo, has developed technology enabling companies to efficiently run AI models and switch between chips from different manufacturers. This capability is highly sought after amid the global race for computing power and major tech firms' efforts to reduce reliance on Nvidia chips, which dominate the AI accelerator market. The company also develops "World Models," such as Lucy and Oasis, which use AI to create and simulate interactive 3D environments, allowing for real-time video content generation while lowering computing costs.
According to PitchBook data cited by the Journal, Decart has raised over $400 million from venture capital firms including Sequoia Capital, Benchmark, and Radical Ventures. Its valuation in May was estimated at $4 billion, indicating a significant increase in value within months. Amazon's relationship with Decart is not new; in May, Amazon became a strategic customer, with Nvidia also joining as an investor and business partner. The Journal reported that Amazon's cloud division, AWS, granted Decart early access to its Trainium3 AI chip in 2025, impressed by the company's founders.
For Amazon, this acquisition could bolster its efforts to develop alternatives to Nvidia chips and strengthen its position in AI infrastructure. Previously, in August, it was reported that Decart was in advanced talks for a sale between $6-7 billion, with interest from tech giants like Amazon, Nvidia, and SpaceX. Later reports indicated advanced discussions with Anthropic, but they reportedly withdrew after due diligence. Currently, Amazon is leading the negotiations, though a binding agreement has not yet been signed. A $7 billion acquisition would be one of Amazon's largest in recent years, comparable to its $6.5 billion purchase of MGM in 2022 and its $11 billion deal for satellite competitor Globalstar this year.
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