Full coverage· Tech· Updated 13 Oct, 07:55

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

Amazon is in advanced negotiations to acquire the Israeli artificial intelligence startup Decart, also referred to as Descartes, for approximately $7 billion. The potential transaction, first reported by The Wall Street Journal, would represent one of the largest exits in the history of Israeli high-tech. The deal could be finalized soon if discussions progress without a collapse or the emergence of competing bidders.

10 newsrooms · 5 languages · since 12 Oct, 06:37

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Amazon in Talks to Acquire Israeli AI Startup Decart for $7 Billion — Illustration by baba

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What happened

01Amazon is in advanced negotiations to acquire the Israeli AI startup Decart for approximately $7 billion.
02The potential deal would represent one of the largest exits in the history of Israeli high-tech.
03Decart's core technology, the Decart Optimization Stack, drastically speeds up AI hardware adaptation and reduces computing costs.
04The startup was founded in September 2023 by Dean and Orian Leitersdorf and Moshe Shilo, and has raised over $400 million.
05A previous $6 billion acquisition deal with Anthropic collapsed because Decart's founders refused to relocate their development center from Israel.
06The acquisition aligns with Amazon's strategy of in-house technology development, following its successful 2015 purchase of Israeli firm Annapurna Labs.
07Decart's valuation has surged to $7 billion, representing a significant increase from its estimated $4 billion valuation in May.

Founded in September 2023 by Dean and Orian Leitersdorf and Moshe Shilo, who is also referred to as Moshe Shalev, the company has raised over $400 million from prominent venture capital firms including Sequoia Capital, Benchmark, and Radical Ventures. Decart, which operates out of San Francisco, was valued at nearly $4 billion in May, meaning the current offer represents a substantial increase in valuation. The startup specializes in software that optimizes AI model performance, reduces computing costs, and allows AI models to run efficiently across different manufacturers' chips.

This acquisition is seen as a strategic move by Amazon to enhance its cloud infrastructure, reduce its reliance on Nvidia chips, and control costs. It follows a pattern established by Amazon's highly successful 2015 acquisition of Israeli chip designer Annapurna Labs for $350 million, which transformed its AWS cloud infrastructure. Prior to Amazon's current bid, Decart's founders had rejected an acquisition offer from Nvidia, and a subsequent $6 billion acquisition deal with Anthropic collapsed due to cultural differences and the founders' refusal to relocate the company's development center from Israel to Silicon Valley.

Summarized by baba from the reports of 7 newsrooms. Updated 12 Oct, 11:16