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

Amazon is reportedly in advanced negotiations to acquire the Israeli artificial intelligence startup Decart for approximately $7 billion. The Wall Street Journal, citing sources familiar with the matter, reported that the deal could be finalized soon, though it is not yet complete and may still fall through or face competing offers. If successful at the reported valuation, the acquisition would represent one of the largest exits in Israeli high-tech history and a significant purchase for Amazon, which acquired MGM studios for $6.5 billion in 2022 and announced plans to buy Globalstar for $11 billion this year. The potential deal price also signifies a substantial increase in Decart's valuation, up from an estimated $4 billion in May.

This development follows a failed acquisition attempt by Anthropic, the developer of the chatbot Claude, which reportedly withdrew from a $6 billion deal after due diligence about a 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 Leittersdorf and Moshe Shilo, operates out of San Francisco. The company has raised over $400 million from prominent venture capital firms, including Sequoia Capital, Benchmark, and Radical Ventures. Decart's core technology focuses on efficiently running AI models and enabling 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 can create and simulate interactive 3D environments and real-time video while reducing costs. Amazon's relationship with Decart is not new; the companies have collaborated on chips, and Amazon has become a strategic customer. In 2025, Amazon Web Services (AWS) granted Decart early access to its self-developed Trainium3 AI chip. For Amazon, this acquisition could bolster its efforts to develop alternatives to Nvidia chips and expand its AI infrastructure.