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

Amazon is reportedly in advanced negotiations to acquire Decart, an Israeli artificial intelligence startup, for approximately $7 billion. This potential acquisition, revealed by The Wall Street Journal and reported by Israeli media, could be one of the largest tech acquisitions of the year in Israel.

Founded in 2023 by Israeli engineers Dean and Orian Leitersdorf and Moshe Shalev, Decart specializes in technologies that optimize AI model performance and reduce computational costs. The company, based in San Francisco, has developed tools like Lucy, which allows real-time video modification using AI.

The acquisition would significantly bolster Amazon's position against competitors like Nvidia, a leader in AI processors. Decart's software is designed to run AI models across various chip architectures, including those from Amazon, Nvidia, and Google.

Decart's valuation has seen substantial growth, having been valued at nearly $4 billion in May. The potential $7 billion deal represents a significant increase in just a few months. Other major tech companies have previously shown interest in Decart; Nvidia reportedly considered an acquisition, and Anthropic, the creator of the Claude assistant, explored a $6 billion purchase before negotiations ceased in September.

While an agreement could be reached soon, the discussions are ongoing, and no definitive deal has been announced. There is also a possibility of a competing offer from another company. This potential transaction highlights the continued appeal of tech companies founded by Israelis, particularly in the crucial AI sector.