Amazon In Talks To Acquire AI Startup Decart For $7 Billion, Boosting AWS AI Ambitions

Amazon is reportedly in talks to acquire artificial intelligence (AI) startup Decart in a deal valued at around $7 billion, as the technology giant looks to strengthen its AI capabilities, expand its custom chip ecosystem, and compete more effectively in the growing AI infrastructure market.

The potential acquisition could bring Decart's AI chip-switching software and advanced world models into Amazon's technology portfolio. However, the deal has not been finalized, and negotiations could still fall apart.

Here's what happened.

TL;DR

 

• Amazon is reportedly negotiating a $7 billion acquisition of San Francisco-based AI startup Decart.
• Decart develops software that helps developers switch between AI chips, alongside advanced world models for video generation and simulation.
• The startup was valued at nearly $4 billion in May 2026.
• Anthropic previously explored acquiring Decart for approximately $6 billion but abandoned the discussions.
• No definitive agreement has been announced.

Amazon Eyes $7 Billion Acquisition Of AI Startup Decart

According to the Wall Street Journal, Amazon is in discussions to acquire Decart for approximately $7 billion, citing people familiar with the matter.

Source

The report suggests that a deal could be reached soon, provided the negotiations remain on track and another potential buyer does not emerge.

Reuters subsequently reported the development on October 11, confirming that acquisition discussions were underway based on the Journal's reporting.

Amazon declined to comment when contacted by Reuters outside regular business hours, while Decart did not respond to its request for comment.

The potential acquisition comes just months after Decart secured a funding round that valued the company at nearly $4 billion in May 2026, according to PitchBook data cited by The Wall Street Journal and Reuters.

At the reported acquisition value of $7 billion, Decart would command a valuation approximately 75% higher than its May valuation.

Interestingly, this is not the first time Decart has attracted acquisition interest from a major AI company.

According to Reuters, citing an earlier Bloomberg News report, Amazon-backed AI company Anthropic explored acquiring Decart for approximately $6 billion in August 2026.

However, Anthropic reportedly decided against proceeding with the acquisition in September after conducting due diligence.

Now, Amazon appears to be pursuing the startup independently, although neither company has officially confirmed a transaction.

What Does Decart Do And Why Is Amazon Interested?

Founded in 2023 by Israeli engineers Dean Leitersdorf, Orian Leitersdorf, and Moshe Shalev, Decart is a San Francisco-based AI startup developing software and AI models designed for demanding computational tasks.

According to Quartz's report, the startup has raised more than $400 million in venture funding from investors including Sequoia Capital, Benchmark, and Radical Ventures.

Decart's technology focuses on two areas: helping developers move between different AI computing chips and developing generative world models capable of producing simulated environments.

Its software simplifies the process of switching AI workloads across chips from different manufacturers, a capability that could become increasingly valuable as AI developers explore alternatives to Nvidia's dominant hardware ecosystem.

The company has also developed AI models such as Lucy and Oasis.

Lucy, which Reuters identifies as backed by Nvidia, enables real-time video editing, allowing AI-powered changes to live video feeds.

Meanwhile, Oasis generates simulated environments that can be used for training and testing robotics and autonomous-driving systems.

These capabilities expand Decart's potential applications beyond conventional AI chatbots and text generation, particularly in areas requiring real-time visual processing and simulated physical environments.

Amazon's Trainium3 Chip Could Be A Key Factor

One of the most interesting aspects of the reported deal is Amazon's existing relationship with Decart.

According to the Wall Street Journal, as detailed by Quartz, Amazon Web Services (AWS) granted Decart early access to its Trainium3 AI chip in 2025 following meetings between the two companies.

Trainium3 is part of Amazon's strategy to develop custom AI processors and provide alternatives to Nvidia's graphics processing units (GPUs) for demanding AI workloads.

With companies investing heavily in AI infrastructure, reducing computing costs and improving flexibility across different chip architectures have become important considerations.

This is where Decart's technology could offer Amazon a strategic advantage.

By acquiring a company that simplifies movement between AI chips, Amazon could potentially make its custom processors more accessible to AI developers currently working with competing hardware.

Such an integration could strengthen the AWS AI ecosystem while giving developers more flexibility when selecting computing infrastructure.

However, Amazon has not publicly disclosed how it would integrate Decart's technology, and any potential benefits remain contingent on the deal being completed.
 

Decart's Valuation Climbs As AI Acquisition Interest Grows

Decart's reported $7 billion price tag represents a substantial increase from its valuation earlier this year.

Reuters reported that the startup raised $300 million in May 2026 in a funding round led by Radical Ventures, with Nvidia joining as a new investor.

The financing valued Decart at nearly $4 billion.

Just months later, Anthropic reportedly considered acquiring the startup for approximately $6 billion before abandoning negotiations.

Amazon's reported offer of around $7 billion would represent an additional increase over the valuation discussed during Anthropic's acquisition talks.

As Quartz noted, Decart's investors and customers include established technology companies, with eBay identified as both an investor and a customer.

For Amazon, the potential acquisition would combine Decart's expertise in AI software portability with its work in real-time video generation and world simulation.
 

While its chip-switching technology could support AWS's custom silicon ambitions, its world models could also expand Amazon's capabilities in generative AI and simulation.

Still, the strategic benefits remain potential outcomes rather than confirmed acquisition plans.

For now, there is no announced definitive agreement, completion date, or official integration roadmap.

If negotiations succeed, the transaction could represent a significant addition to Amazon's AI technology portfolio, giving the company another opportunity to strengthen its position in the increasingly competitive AI infrastructure market.