Amazon in Talks to Acquire Israeli AI Startup Decart for $7 Billion
Translated & summarized from Walla by baba
Amazon is reportedly in advanced talks to acquire Israeli AI startup Decart for about $7 billion, a deal that would be one of the largest exits in Israeli tech history. The valuation represents a significant increase from May, and the acquisition could bolster Amazon's AI infrastructure and chip alternatives. The deal follows a failed acquisition attempt by Anthropic and a prior rejection of an offer from Nvidia.
The story in 6 lines · by baba
- Amazon is reportedly negotiating to acquire Israeli AI startup Decart for approximately $7 billion.
- The potential deal would be one of the largest exits in Israeli high-tech history.
- Decart's valuation has surged by about 75% since May, reaching nearly $4 billion.
- A previous $6 billion acquisition attempt by Anthropic failed after due diligence.
- Decart's technology allows efficient AI model execution and switching between chip manufacturers.
- Amazon has been a strategic customer and collaborator with Decart on chip technology.
Technology giant Amazon is reportedly in negotiations to acquire Israeli artificial intelligence startup Decart for approximately $7 billion, according to sources familiar with the matter cited by The Wall Street Journal. The talks are said to be progressing, with a potential deal closure imminent, though it remains incomplete and subject to failure or the emergence of other interested buyers.
If finalized at the reported valuation, the acquisition would represent one of the largest exits in Israeli high-tech history and a significant purchase for Amazon, comparable to its $6.5 billion acquisition of MGM Studios in 2022 and its planned $11 billion purchase of Globalstar. The valuation also marks a substantial increase from May, when Decart was valued at around $4 billion, a roughly 75% jump.
This news follows a failed acquisition attempt by Anthropic, the developer of the chatbot Claude, which withdrew from a potential $6 billion deal for Decart after a due diligence review approximately one month ago. Previously, Decart's founders had rejected an offer from Nvidia, preferring Anthropic's stock-based proposal.
Decart, founded in 2023 by brothers Dean and Orian Leitersdorf and Moshe Shalev, operates out of San Francisco. The company has raised over $400 million from prominent venture capital firms, including Sequoia Capital, Benchmark, and Radical Ventures. Its core technology enables efficient execution of AI models and seamless switching between different manufacturers' chips, a capability highly sought after amid the global race for computing power and efforts to reduce reliance on Nvidia's chips.
Additionally, Decart is developing "World Models," such as Lucy and Oasis, which create and simulate interactive 3D environments and real-time video with cost savings. Amazon's relationship with Decart is not new; they have collaborated on chip technology, with Amazon becoming a strategic customer. Amazon Web Services (AWS) granted Decart early access to its Trainium3 AI chip in 2025. For Amazon, this acquisition could bolster its efforts to develop alternatives to Nvidia chips and expand its AI infrastructure.
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