Amazon in Talks to Acquire AI Startup Decart for $7 Billion

Amazon is reportedly negotiating a potential $7 billion acquisition of artificial intelligence startup Decart, signaling the technology giant's growing ambitions in generative AI, real-time video processing, and advanced simulation technology.

According to a Wall Street Journal report published Sunday, citing people familiar with the discussions, Amazon is exploring a deal to purchase Decart as competition intensifies among major technology companies seeking innovative AI capabilities.

The proposed acquisition could be finalized soon, although negotiations remain uncertain. The report noted that discussions could collapse or another potential buyer could emerge before an agreement is reached.

Decart has attracted significant attention for its artificial intelligence models, particularly Lucy, an Nvidia-backed technology capable of modifying live video footage in real time. The company's website highlights Lucy's ability to transform video content instantly, demonstrating the growing potential of generative AI in visual applications.

The startup has also developed Oasis, an AI model designed to generate simulated environments. This technology can support the training and testing of robotics systems and autonomous vehicles, potentially expanding its applications across several industries.

Amazon's interest comes after Decart experienced substantial valuation growth. The startup was valued at nearly $4 billion in May, according to PitchBook data cited by the Wall Street Journal. A potential $7 billion transaction would represent a significant increase from that valuation.

Decart also secured $300 million in funding during May through an investment round led by Radical Ventures. Nvidia joined the financing as a new investor, further strengthening the startup's position in the competitive artificial intelligence market.

Amazon is not the first major AI company to explore acquiring Decart. Bloomberg News previously reported that Anthropic considered purchasing the startup in August for approximately $6 billion.

However, Anthropic reportedly abandoned the potential acquisition last month after completing its due diligence process.

The reported Amazon-Decart negotiations highlight increasing interest in AI startups developing specialized models for video generation, robotics, and simulation.

Neither Amazon nor Decart immediately responded to requests for comment, while Reuters said it could not independently verify the acquisition report.

If completed, the transaction would mark a significant investment in emerging AI technology and could strengthen Amazon's capabilities in an increasingly competitive artificial intelligence industry.