Amazon in Talks to Buy AI Startup Decart for $7 Billion

Amazon is in talks to acquire Artificial Intelligence startup Decart in a deal valued at approximately $7 billion, the Wall Street Journal reported on Sunday, citing people familiar with the matter. The potential acquisition would expand Amazon’s presence in the rapidly growing artificial intelligence sector as Technology companies compete to develop advanced AI models and applications.

According to the report, a deal could be announced soon if negotiations proceed without complications or another potential buyer emerges. However, the discussions remain ongoing, and the companies have not confirmed an agreement.

Amazon’s Potential Acquisition of Decart

The reported $7 billion valuation represents a significant increase from Decart’s previous valuation of nearly $4 billion in May, according to PitchBook data cited by the Wall Street Journal. The potential transaction highlights investor interest in AI startups developing technologies for real-time video processing, simulated environments and advanced computing applications.

Amazon declined to comment outside regular business hours, while Decart did not respond to requests for comment. The outcome of the negotiations remains uncertain, and the proposed acquisition could still face changes if discussions break down or another interested buyer enters the picture.

Decart’s AI Technology and Products

Decart has developed artificial intelligence models designed for real-time video editing and the simulation of complex environments. One of its products, Lucy, is backed by Nvidia and can edit live video in real time, according to information published on the company’s website.

The startup has also developed Oasis, an AI model that generates simulated environments for training and testing robotics and autonomous-driving systems. Such technologies can help developers create virtual settings in which machines and software systems can be evaluated under different conditions.

These capabilities could make Decart an attractive acquisition target for companies seeking to expand their AI offerings. Real-time video processing and simulated environments have potential applications across entertainment, robotics, autonomous transportation and other technology-driven industries.

Decart’s Valuation Rises as AI Investment Grows

Decart was valued at nearly $4 billion in May, according to PitchBook data cited by the Wall Street Journal. The startup subsequently raised $300 million in a funding round led by Radical Ventures, with Nvidia joining as a new investor.

The reported $7 billion acquisition discussions suggest that Decart’s valuation may have increased substantially in a relatively short period. The company’s technology portfolio and backing from prominent investors could contribute to interest from major technology companies seeking to strengthen their artificial intelligence capabilities.

However, the reported valuation reflects the terms under discussion rather than a completed transaction. The final value and structure of any potential acquisition have not been confirmed.

Anthropic Previously Explored a Potential Deal

Amazon is not the only major technology company reported to have considered acquiring Decart. Last month, Anthropic decided against pursuing an acquisition after conducting due diligence, Bloomberg News reported.

Anthropic had explored a potential deal valued at approximately $6 billion in August, according to the report. The company’s decision not to proceed leaves Amazon’s reported negotiations as a separate development in the competition surrounding AI startups and their technologies.

The earlier discussions also illustrate the significant financial commitments that technology companies are considering as they seek access to specialised AI capabilities. Acquiring an established startup can provide a faster route to obtaining technology and expertise than developing comparable systems entirely in-house.

Nvidia’s Role in the AI Ecosystem

Nvidia has emerged as an important participant in the artificial intelligence industry through its computing technology and investments in AI companies. Its backing of Decart’s Lucy model and participation in the startup’s May funding round connect the company to a business developing applications beyond conventional AI text generation.

Decart’s focus on real-time video editing and simulated environments reflects the expanding range of AI applications attracting investment. These systems require advanced computing capabilities and can support the development of technologies used in robotics, autonomous driving and digital content creation.

For Amazon, a potential acquisition could provide access to Decart’s existing technology and development expertise. However, the companies have not disclosed how the startup’s products might be incorporated into Amazon’s broader AI strategy.

What the Potential Deal Could Mean for Amazon

If completed, the reported acquisition would give Amazon access to a startup working on specialised AI models for video processing and virtual simulations. The transaction could broaden Amazon’s technology portfolio and provide additional capabilities for developing AI-powered services.

The reported talks also come amid intense competition among major technology companies to secure AI talent, infrastructure and intellectual property. As businesses explore applications ranging from automated systems to digital media production, specialised startups have become potential acquisition targets.

For now, the proposed $7 billion deal remains under discussion. Its completion will depend on the outcome of negotiations, and neither Amazon nor Decart has publicly confirmed an agreement.