Amazon Negotiates Acquisition of AI Startup Decart
Amazon is currently engaging in negotiations to acquire the artificial intelligence startup Decart, with a prospective deal potentially valued at approximately $7 billion.
This acquisition could emerge as one of Amazon’s most significant purchases in recent years, as reported by the Wall Street Journal, which cited sources conversant with the discussions.
If negotiations proceed without interruption and no alternative suitor surfaces, an agreement may be finalized imminently.
The intended acquisition would afford Amazon access to innovative technology designed to facilitate developers in switching among various artificial intelligence chips.
This capability is becoming increasingly crucial as firms vie for the computational prowess necessary to create and operate advanced AI models.
Decart’s Valuation and Funding
Based in San Francisco, Decart was valued at nearly $4 billion in May and has garnered over $400 million in venture capital investments from prominent investors, including Sequoia Capital, Benchmark, and Radical Ventures, as indicated by PitchBook and referenced by the Wall Street Journal.
The company was established in 2023 by brothers Dean and Orian Leitersdorf, along with their colleague Moshe Shalev, who are all Israeli engineers.
Amazon’s AI Chip Ambitions
This prospective acquisition aligns with Amazon’s intensified efforts to enhance its foothold in AI infrastructure, directly challenging Nvidia’s supremacy in the realm of graphics processing units (GPUs) — specialized chips extensively utilized in the deployment of AI applications.
Amazon has already embarked on the development of its bespoke AI chips, including Trainium3, via its cloud computing segment, Amazon Web Services (AWS).
Per the Wall Street Journal, AWS provided Decart with early access to its tailored chip technology in 2025 following a meeting with the startup’s founders, who left a lasting impression on Amazon’s executives.
Decart’s software provides developers with the tools to transition between various AI chips, which could be pivotal for companies striving to optimize their computing resources amid the escalating demand for AI infrastructure.
Amazon’s Strategic Acquisition Landscape
Should the deal with Decart materialize at the anticipated valuation, it would rank among the largest acquisitions undertaken by Amazon in recent history.
In 2022, Amazon acquired film and television studio MGM for $6.5 billion and, earlier in 2026, announced an $11 billion agreement to purchase satellite communications provider Globalstar, marking a strategic entry into satellite-based connectivity.
Earlier this month, Israeli news outlet Calcalist reported that Decart was in advanced negotiations for acquisition by a significant technology firm.
However, recent discussions with Amazon remain contingent and are subject to alterations, according to the Wall Street Journal report.
Source link: M.economictimes.com.
