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Ongoing Story· Today

Amazon in Talks to Acquire Israeli AI Firm Descartes for $7 Billion

2 developments

GlobesEconomy

Amazon in Talks to Acquire Israeli AI Firm Decart for $7 Billion

Translated & summarized from Globes by baba

BusinessNeutral tone

Hebrew · 10 newsrooms covering

Amazon is in talks to acquire Israeli AI company Decart for approximately $7 billion, according to The Wall Street Journal. Founded in 2023, Decart has raised over $400 million and was valued at nearly $4 billion in May. The potential deal follows Anthropic's withdrawal from a $6 billion acquisition attempt last month. If finalized, the acquisition would be a major exit for Decart and a significant move for Amazon in the AI chip market.

The story in 6 lines · by baba

  • Amazon is reportedly negotiating to acquire Israeli AI firm Decart for about $7 billion.
  • Decart, founded in 2023, has raised over $400 million and was valued at nearly $4 billion in May.
  • The potential deal follows Anthropic's withdrawal from a $6 billion acquisition attempt last month.
  • Nvidia had previously made a higher offer, which Decart's founders rejected.
  • The acquisition could be one of the largest exits in Israeli high-tech history.
  • Decart develops software for AI chip interoperability and "World Models" for 3D environments.
Amazon in Talks to Acquire Israeli AI Firm Decart for $7 Billion
Editorial illustration generated by baba News, not a photograph of the event.

Amazon is reportedly in negotiations to acquire Decart, an Israeli artificial intelligence company, in a deal that could be valued at approximately $7 billion. The Wall Street Journal reported the ongoing discussions, noting that while a deal could be finalized soon, negotiations are not yet complete and may still fail or attract other potential buyers.

Decart, founded in 2023 by brothers Dean and Orian Leittersdorf and Moshe Shilo, operates out of San Francisco. The company has raised over $400 million from investors, including prominent venture capital firms like Sequoia Capital, Benchmark, and Radical Ventures. Its valuation was estimated at nearly $4 billion in May, meaning the reported Amazon deal price represents a roughly 75% increase in value within about five months.

The potential acquisition by Amazon comes about a month after Anthropic withdrew from a deal to buy Decart for around $6 billion, following weeks of negotiations. Earlier reports indicated that Decart's founders had previously rejected a higher offer from Nvidia, preferring Anthropic's bid, which was made in stock, in anticipation of a future IPO.

If the Amazon deal is completed at the reported valuation, it would represent one of the largest exits in Israeli high-tech history and a significant acquisition for Amazon in recent years. For Amazon, the move could bolster its artificial intelligence efforts and its competition with Nvidia in the chip sector. Decart develops software enabling developers to switch between AI chips from different manufacturers, a capability that could aid Amazon in advancing its own chips for its cloud division, AWS. Amazon had granted Decart early access to its Trainium3 chips back in 2025.

In addition to its chip-related software, Decart is also developing "World Models" AI, such as Lucy and Oasis, which can create and simulate dynamic 3D environments. This potential acquisition follows other major purchases by Amazon, including MGM Studios for $6.5 billion in 2022 and Globalstar for $11 billion this year. For Decart, founded just three years ago, this would mark a substantial increase in valuation in a short period, though the finalization of the deal remains uncertain.

GlobesOther · Rishon LeZion

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