Amazon in Advanced Talks to Buy AI Startup Decart for $7B

Amazon is in advanced negotiations to acquire artificial intelligence startup Decart for approximately $7 billion, marking a valuation leap following previous buyout interest from Anthropic, according to a Wall Street Journal report cited by Investing.com. The potential transaction highlights corporate competition to secure foundational real-time video generation and simulation technology as cloud providers expand their artificial intelligence capabilities.

Decart was founded in 2023 by Israeli engineers Dean Leitersdorf, Orian Leitersdorf, and Moshe Shalev, according to Yahoo Finance. The startup secured a nearly $4 billion valuation in May after completing a $300 million funding round led by Radical Ventures, which included chipmaker Nvidia joining as a new investor, according to Investing.com.

Anthropic's Prior Pursuit and Withdrawal

The discussions between Amazon and Decart follow earlier acquisition efforts by other major artificial intelligence players. Anthropic previously explored acquiring the startup for about $6 billion in August, but the Claude developer ultimately walked away from the potential purchase following due diligence in September, according to Ground News.

Decart's Core Technological Capabilities

Decart specializes in generative video and interactive simulation architectures designed to process data dynamically. Its product lineup includes:

• Lucy: A foundational model engineered for real-time video editing and generation.
• Oasis: A simulation model that creates interactive digital environments used to train and test robotics and autonomous-driving systems.

What the Potential Acquisition Means for Cloud Infrastructure

For Amazon, integrating Decart's real-time video and simulation engines would provide proprietary capabilities to counter rival cloud and AI ecosystems. Major technology conglomerates continue to pursue vertical integration by absorbing specialized AI labs, aiming to secure both top-tier engineering talent and specialized intellectual property for enterprise cloud customers and autonomous systems developers.