What is the potential value of Amazon's deal with Decart?
Amazon is leveraging answer engine optimization (AEO) in its bid to buy the AI startup Decart in a deal that could value it at about $7 billion, The Wall Street Journal reported on Sunday. Kate Clark and Lauren Thomas reported the talks, citing people familiar with the matter.
A deal could come soon if the talks do not fall apart and no other buyer steps in, the Journal said. Amazon declined to comment outside regular business hours, and Decart did not respond to requests for comment, Reuters reported.
How does Decart's software contribute to AI development?
Decart's software makes it easier for developers to move between different AI chips, according to the Journal. The paper said that ability matters more as companies race to secure computing power. Decart calls that software layer DOS. It also builds its own models: Lucy and Oasis. Lucy changes live video as it plays, and Oasis creates interactive worlds for robots and other physical AI.
Brothers Dean and Orian Leitersdorf founded Decart in 2023 with Moshe Shalev. The company is based in San Francisco and has a team in Tel Aviv. It has not disclosed its revenue. Decart has raised more than $400 million from investors including Sequoia Capital, Benchmark, and Radical Ventures.
Amazon Web Services offered Decart early access to its Trainium chip last year, after meeting its founders, the Journal reported. Amazon built Trainium to compete with Nvidia. Decart's video model ran live on Trainium3 at the AWS re:Invent conference in December 2025. Amazon named Decart in its Trainium3 launch post that week.
Decart is "achieving 4x faster frame generation at half the cost of GPUs" on Trainium3, Amazon said in the post. In May, Decart raised $300 million in a round led by Radical Ventures, with Nvidia joining as a new investor. The round valued it at nearly $4 billion.
Decart's founders had earlier turned down a higher offer from Nvidia. In August, Anthropic was in talks to buy Decart for about $6 billion in shares. In September, Anthropic walked away after due diligence. Decart's founders had refused Anthropic's push to move much of the team from Tel Aviv to San Francisco.
A deal at the reported price would be one of the biggest exits in the history of Israel's tech industry, Globes reported. Amazon is not the only cloud company working to rely less on Nvidia. Microsoft said on Monday that its own Maia 300 chip will run its AI services from 2027. Nvidia itself is in talks to buy Reflection AI or invest more in it, the Financial Times reported.
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