Amazon.com Inc. is in advanced negotiations to acquire artificial intelligence (AI) startup Decart AI in a deal that could reach approximately $7 billion, according to a report by The Wall Street Journal citing sources familiar with the matter.
If discussions proceed smoothly and no rival suitors intervene, a transaction could be finalized soon.
Founded in 2023 by Israeli engineers Dean Leitersdorf, Orian Leitersdorf, and Moshe Shalev, Decart specializes in advanced video generation and simulation technology, often referred to as world models.
Its core product lineup includes Lucy, a platform capable of editing live videos in real time, and Oasis, which generates interactive 3-D simulated environments. These tools are increasingly vital for training and testing next-generation robotics and autonomous-driving systems.
The potential $7 billion price tag reflects a significant surge in valuation for the young startup. PitchBook data shows Decart has raised more than $400 million in venture funding from prominent backers, including Sequoia Capital, Benchmark, and Radical Ventures.
Decart was valued at nearly $4 billion in May following a $300 million funding round that brought in graphics chip maker NVIDIA Corp. as a new investor.
Decart previously attracted interest from Anthropic, which explored a $6 billion acquisition in August but ultimately opted against pursuing the deal in September following due diligence.
An acquisition would significantly align with Amazon’s aggressive expansion into cloud infrastructure, robotics, and proprietary AI development. Amazon Web Services (AWS) previously granted Decart early access to its custom-designed Trainium3 AI chips in 2025 — part of Amazon’s broader strategy to build alternatives to NVIDIA’s dominant GPUs and gain tighter control over infrastructure costs.
Furthermore, Decart’s spatial simulation capabilities offer immediate synergies with Amazon’s logistics operations. The e-commerce giant expects to more than double its fleet of robotic arms in 2026, making realistic 3-D simulation tools crucial for rapid testing and deployment.
The acquisition attempt comes during a period of massive capital allocation for Amazon.
Driven by data center expansion and rising memory costs, the company expects capital expenditures to reach approximately $220 billion in 2026. While CEO Andy Jassy has cautioned that short-term free cash flow will experience pressure during this buildout phase, integrating Decart could enhance AWS’s market offering and strengthen Amazon’s proprietary AI ecosystem.
Should the deal finalize near $7 billion, it would rank among Amazon’s largest recent corporate acquisitions, joining its $6.5 billion purchase of MGM Studios in 2022 and its $11 billion investment in satellite firm Globalstar.
