Amazon (AMZN) is in talks to buy Israeli AI startup Decart for about $7 billion. A deal could come soon, though the talks could still collapse or another bidder could step in. Neither company has confirmed anything, and Amazon shares barely moved.
The price is the twist. Anthropic, the Amazon-backed AI lab, went through Decart’s books at about $6 billion and walked away in September. Amazon would pay roughly $1 billion more, about 75% above the nearly $4 billion valuation Decart raised at in May.
Why Amazon Would Pay More
Decart is known for real-time video models and simulated worlds, but the reported draw is its optimization software, which helps AI models run on Nvidia GPUs, Google TPUs, and Amazon’s own Trainium chips. Amazon is already a Decart customer. Unlike Anthropic, Amazon offers its own AI chips through AWS, so software that makes moving workloads onto Trainium easier could give it an additional strategic reason to buy Decart.
$7 Billion Is Small Change for Amazon
Amazon held $122.99 billion in cash and short-term investments at the end of June, so the deal would use about 6% of it.
Capex is the better yardstick. Amazon spent $54.21 billion in the second quarter alone, up 68% from a year earlier. At that pace, Decart costs about 12 days of spending.
What Anthropic Saw in Decart
The money isn’t the risk. The unknown is why Anthropic wouldn’t pay $6 billion after due diligence. Amazon’s reported price is roughly $1 billion above the figure discussed by Anthropic, but the reason Anthropic withdrew remains unknown. Its withdrawal alone does not establish a problem with Decart’s technology or explain Amazon’s willingness to pay more.
Nvidia (NVDA), a Decart investor and earlier acquisition suitor, could face more competition if an Amazon acquisition makes switching workloads to Trainium easier.
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