Amazon in Talks to Acquire AI Startup Decart for $7 Billion
Amazon is reportedly in discussions to purchase Decart, an AI startup founded in Israel, for approximately $7 billion, according to a recent report by the Wall Street Journal. This proposed deal comes after Anthropic, another tech company, decided against a similar acquisition of Decart worth about $6 billion last month, following an in-depth review.
The anticipated $7 billion price tag represents a significant increase of around 75% over Decart’s valuation of nearly $4 billion just five months ago. If the discussions are successful, an announcement could come soon, provided that no other buyers enter the picture or negotiations do not fall through.
Decart was established in 2023 by Dean Leitersdorf, his brother Orian, and Moshe Shalev, and is headquartered in San Francisco with additional offices in New York and Tel Aviv. The company’s main product, known as the Decart Optimization Stack (DOS), enables developers to run AI workloads efficiently on multiple types of chips, including those from Nvidia, Google, and Amazon.
Experts point out that the traditional process of optimizing AI models for specific chips can take several months. However, Decart’s DOS can significantly shorten this timeline to just a couple of weeks. The company also develops its own AI models, such as Lucy, which can edit live video in real-time, and Oasis, designed for training robots and autonomous vehicles.
Amazon’s Previous Acquisitions and Strategy
This potential acquisition isn’t Amazon’s first foray into the tech startup world. In 2015, Amazon acquired the Israeli chip company Annapurna Labs for a reported $350 million. The engineers at Annapurna have since played a crucial role in developing Amazon’s AI chips, including Graviton and Trainium.
Amazon has shown significant interest in Decart’s technology. The company granted Decart early access to its Trainium chips after being impressed by the team’s capabilities. During a tech event in December 2025, Leitersdorf highlighted the advanced performance of their technology, noting that it could generate frames much faster and more cost-effectively than traditional GPUs.
In recent months, Amazon has invested heavily in AI and related technologies. Earlier in 2026, it committed $5 billion to Anthropic, with the potential for additional funding tied to certain commercial milestones. The competition for computing power among tech firms is growing, with companies like SpaceX and Nvidia also seeking major investments to enhance their capabilities.
Questions Surrounding the Deal
Despite the excitement, there are still unanswered questions regarding the deal. It remains unclear why Anthropic backed out of its negotiations with Decart. Additionally, the neutrality of Decart’s technology—which works across various chips from Nvidia, Google, and Amazon—could be in question if Amazon acquires the company. Nvidia, which is an investor in Decart, had considered acquiring the startup before higher bids emerged.
If Amazon succeeds in this acquisition, it would be making a substantial commitment at about 20 times the price it paid for Annapurna Labs. As the market for AI technologies continues to evolve, this deal could provide insights into the value of software within the competitive chip landscape.
