Amazon in Talks to Acquire Israeli AI Firm Decart for $7 Billion
Translated & summarized from Israel Hayom by baba
Amazon is in talks to acquire Israeli AI company Decart for about $7 billion, according to a Wall Street Journal report. Decart's technology allows efficient AI model operation and chip switching, and it develops advanced simulation and content generation models. The potential deal follows previous acquisition talks with Nvidia and Anthropic, the latter of which fell through. This acquisition would be one of Amazon's largest in recent years.
The story in 6 lines · by baba
- Amazon is negotiating to buy Israeli AI firm Decart for approximately $7 billion.
- Decart's technology enhances AI model efficiency and chip interoperability.
- The company also develops advanced 3D simulation and real-time video generation models.
- Previous acquisition talks with Nvidia and Anthropic did not result in a deal.
- Decart was founded in 2023 by Dean and Orian Leitersdorf and Moshe Shilo.
- The potential deal represents a significant valuation increase for Decart since May.
Amazon is reportedly in negotiations to acquire the Israeli artificial intelligence company Decart for approximately $7 billion. The Wall Street Journal reported on Monday that the deal could be finalized soon, following an extended period of collaboration between the two companies. Decart's technology enables businesses to efficiently run AI models and seamlessly switch between chips from different manufacturers. The company also develops world models like Lucy and Oasis, capable of creating and simulating interactive 3D environments and generating real-time video content while reducing computing costs.
These discussions come after Decart's previous attempts to find a buyer. About a month ago, talks were held with Nvidia, followed by discussions with Anthropic. The negotiations with Anthropic reached an advanced stage, but the company withdrew from the deal after its due diligence process revealed unsatisfactory findings. Consequently, Decart resumed its search for an acquirer.
The relationship with Amazon was established last year when Amazon's cloud division, AWS, granted Decart early access to its self-developed AI chip, Trainium3. This move positions Amazon to play a key role in the global race for computing power and to develop alternatives to Nvidia's dominance in the AI accelerator market.
For Amazon, this potential acquisition would be one of its largest in recent years, comparable to its $6.5 billion purchase of MGM Studios in 2022 and its $11 billion acquisition of satellite company Globalstar earlier this year. Decart was founded in 2023 by brothers Dean and Orian Leitersdorf and Moshe Shilo. The company has raised over $400 million from venture capital firms, including Sequoia Capital and Benchmark. In May, Decart was valued at approximately $4 billion, indicating a significant increase in its valuation within a few months.
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