Amazon is reportedly in discussions to acquire Israeli-founded artificial intelligence startup Decart for approximately $7 billion (Sh908 billion), in a potential transaction that could strengthen the technology giant's position in the increasingly competitive market for AI computing infrastructure.
The negotiations were reported by The Wall Street Journal, citing people familiar with the matter, according to Israeli technology publication CTech. Although an agreement could reportedly be reached soon, the discussions remain ongoing, and there is no guarantee that the acquisition will be completed.
The proposed transaction follows an unusually competitive acquisition process involving several major artificial intelligence companies. Nvidia initially explored buying Decart before Anthropic emerged as a potential purchaser, only for the AI developer to abandon its proposed acquisition after conducting due diligence.
Anthropic had reportedly entered advanced negotiations that could have valued Decart at approximately $6 billion to $7 billion. The discussions ended in September, leaving the startup available for another potential buyer. The specific reasons for Anthropic's decision have not been publicly established.
Amazon's reported interest is particularly significant because the company already has a commercial relationship with Decart through Amazon Web Services (AWS), its cloud computing division.
AWS became a strategic customer of the startup as Decart expanded its artificial intelligence infrastructure business. Amazon also reportedly provided the company with early access to its Trainium3 AI processors in 2025, allowing Decart to work with hardware designed to compete with Nvidia's widely used AI chips.
Founded in 2023 by brothers Dean and Orian Leitersdorf alongside Moshe Shalev, Decart develops technology intended to improve the efficiency of artificial intelligence models and make it easier to operate them across different computing platforms.
The company's technology addresses an increasingly important challenge facing the AI industry: the enormous cost of running sophisticated artificial intelligence systems.
Training and operating advanced AI models require substantial computing resources, much of which currently depends on specialised processors supplied by Nvidia. As demand for AI infrastructure increases, technology companies are searching for ways to reduce operating costs, improve hardware efficiency and avoid relying too heavily on a single chip manufacturer.
Decart's software is designed to help AI developers use computing resources more efficiently while supporting greater flexibility across different processors. Such capabilities could become increasingly valuable as cloud providers introduce their own AI chips and seek to attract customers looking for alternatives to Nvidia-powered infrastructure.
For Amazon, acquiring Decart could strengthen its broader strategy of developing an integrated artificial intelligence ecosystem that combines cloud infrastructure, specialised processors and software optimisation.
The company has invested heavily in its Trainium family of chips as part of efforts to provide alternatives to Nvidia's processors. Integrating Decart's technology into AWS could potentially help customers run AI workloads more efficiently on Amazon's hardware.
The acquisition could also give Amazon access to Decart's work in real-time generative artificial intelligence, an emerging area involving systems capable of producing and modifying visual environments as users interact with them.
Decart has developed products including Oasis, an AI-powered interactive environment that generates visual content in response to user actions, and Lucy, a system designed to support real-time video editing.
These technologies demonstrate the startup's interests beyond infrastructure optimisation, although its computing efficiency capabilities appear particularly relevant to Amazon's cloud strategy.
The reported $7 billion acquisition price would represent a substantial increase from Decart's most recently disclosed valuation. In May 2026, the startup raised approximately $300 million in a funding round that valued the business at about $4 billion.
The financing round was led by Radical Ventures and included Nvidia, demonstrating investor interest in the company's technology even before the latest acquisition discussions emerged.
Decart has reportedly raised approximately $450 million in total funding since its establishment. A sale at the proposed valuation would represent a significant outcome for a company founded only three years ago.
The negotiations also illustrate the intense competition among major technology companies for businesses developing specialised AI capabilities.
While much public attention has focused on increasingly powerful AI models, the infrastructure required to operate those models has become a strategic battleground. Companies capable of reducing computing costs or improving processor efficiency can offer advantages to cloud providers serving the rapidly expanding AI market.
For Amazon, the potential acquisition would represent a substantial investment in technology that could strengthen its position against Nvidia and other major suppliers of artificial intelligence infrastructure.
However, the transaction remains unconfirmed. Neither Amazon nor Decart has publicly announced a definitive acquisition agreement, and the reported negotiations could still end without a completed sale.
The collapse of Decart's earlier discussions with Anthropic demonstrates that even advanced acquisition negotiations do not guarantee a successful transaction.
If completed, the reported takeover would place Decart's technology within one of the world's largest cloud computing businesses and potentially accelerate its integration into commercial AI infrastructure.
The outcome will also provide another indication of how much major technology companies are prepared to spend to secure technologies that promise to make artificial intelligence faster, cheaper and less dependent on existing hardware suppliers.
