Amazon in Talks to Acquire Israeli AI Startup Decart for $7 Billion
Translated & summarized from Ice by baba
Amazon is in talks to acquire Israeli AI startup Decart for an estimated $7 billion, a significant increase from its May valuation of nearly $4 billion. Decart, founded in 2023 by three Israeli engineers, develops AI infrastructure and 3D simulation technology. The potential acquisition highlights Amazon's interest in AI chip development and its competitive stance against companies like Nvidia. The deal is not yet finalized, and a previous acquisition attempt by Anthropic reportedly fell through last month.
The story in 6 lines · by baba
- Amazon is negotiating to acquire Israeli AI startup Decart for approximately $7 billion.
- The potential acquisition price represents a significant increase from Decart's valuation of nearly $4 billion in May.
- Decart was founded in 2023 by three Israeli engineers and focuses on AI infrastructure.
- Amazon's interest may be linked to its efforts to promote its Trainium3 AI chip.
- A previous acquisition attempt by Anthropic for around $6 billion reportedly ended last month.
- Decart has raised over $400 million and is headquartered in San Francisco.
Amazon is reportedly in negotiations to acquire Decart, an Israeli artificial intelligence startup, for approximately $7 billion. This potential deal represents a significant valuation jump for Decart, which was valued at nearly $4 billion just last May. Founded in 2023 by three Israeli engineers, Dean and Oriane Leiterdorf and Moshe Shilo, Decart specializes in AI infrastructure, enabling developers to work with various AI chips. The company's technology facilitates seamless switching between different AI chips and also develops models for creating and simulating real-world 3D environments, with products like Lucy and Oasis.
Decart, which has raised over $400 million since its inception, is headquartered in San Francisco. The startup's focus on AI infrastructure places it in a highly competitive and rapidly evolving sector. Amazon's interest is further underscored by its existing relationship with Decart, having granted the startup early access to its proprietary AI chip, Trainium3. This move aligns with Amazon's strategic efforts to promote its own AI chips amidst competition with major players like Nvidia.
If the acquisition proceeds at the reported valuation, it would rank among Amazon's largest acquisitions, comparable to its $6.5 billion purchase of MGM in 2022. However, the deal is not yet finalized, and ongoing negotiations leave room for competing offers. Notably, just last month, Anthropic, an American AI company, reportedly ceased negotiations to acquire Decart, which was then valued at around $6 billion, after completing its due diligence.
