Amazon is reportedly in advanced talks to acquire Decart, an AI startup valued at nearly $4 billion just five months ago. The potential deal could strengthen Amazon’s custom chip strategy while bringing real-time video and interactive AI technology into its portfolio.
The discussions are at an advanced stage, according to The Wall Street Journal. However, no agreement has been finalised, and the proposed valuation and other terms could still change.
What makes Decart particularly interesting to Amazon is not just its work in generative AI. The startup has also developed software that allows AI applications to operate across different processors, a capability that could support Amazon’s efforts to expand adoption of its own Trainium chips.
The reported acquisition would also represent a significant jump in Decart’s valuation. In May 2026, the company was valued at nearly $4 billion following a major funding round. A $7 billion transaction would put its value roughly 75% above that level in just five months.
Why Amazon Is Interested in Decart
Amazon has been developing its own AI processors as it works to reduce dependence on external chip suppliers and provide customers with more computing options.
Nvidia’s graphics processing units remain central to much of the infrastructure used to train and run artificial intelligence models. For Amazon, developing competitive hardware is only part of the challenge. Making that hardware practical for developers is equally important.
This is where Decart’s technology could become valuable.
The startup develops software that enables AI applications to run across different chip architectures. Its technology allows developers to move workloads between processors, potentially making it easier to select hardware based on performance requirements and operating costs.
If the acquisition goes ahead, these capabilities could complement Amazon’s Trainium processors and make its custom AI infrastructure more attractive to developers.
Rather than competing with Nvidia through hardware alone, Amazon could gain software capabilities that help applications work across a wider range of computing systems.
Decart’s AI Technology Goes Beyond Traditional Generative Tools
Decart’s business extends beyond software designed for AI chips. The startup is also developing models that can generate and simulate interactive digital environments.
Two of its products illustrate that focus.
Lucy is an AI model built for real-time video editing, while Oasis generates interactive simulated environments.
These technologies represent a different direction for generative AI, moving beyond systems that primarily produce text or static images.
Decart’s work in three-dimensional simulation could also have applications in robotics and autonomous-driving research, where AI systems need to interact with changing environments.
Such environments can help researchers explore how AI models respond to simulated surroundings.
For Amazon, acquiring Decart could therefore provide access to both AI infrastructure software and technology for developing interactive AI applications.
Decart’s Valuation Has Climbed Sharply Since May
The reported $7 billion acquisition price comes just months after Decart attracted substantial investor interest.
In May 2026, the startup raised $300 million in a funding round led by Radical Ventures, with Nvidia also participating as an investor.
That financing valued Decart at nearly $4 billion.
The reported Amazon proposal places the company at a considerably higher valuation, although the final transaction value remains uncertain.
Nvidia’s participation in Decart’s earlier funding round adds an interesting dimension to the potential acquisition. Amazon, which is building alternatives to Nvidia’s processors, could end up acquiring an AI company backed by the chipmaker itself.
The development highlights how closely connected the AI hardware and software markets have become, even among companies competing for a greater share of the industry.
Anthropic Had Also Considered Buying Decart
Amazon is reportedly not the first major AI player to explore an acquisition of Decart.
Anthropic previously considered purchasing the startup at a valuation of approximately $6 billion before deciding against pursuing the transaction.
The earlier discussions suggest that Decart’s technology has attracted interest from companies with different priorities in artificial intelligence.
While the reported Anthropic proposal did not proceed, Amazon’s current negotiations could place the startup within a much larger AI infrastructure business.
What the Potential Acquisition Means for Amazon’s AI Chip Ambitions
The wider importance of the deal lies in the relationship between AI software and the processors used to run it.
Building powerful chips does not automatically ensure that developers will adopt them. Applications must also be able to run efficiently on the available hardware.
Decart’s software could help address that challenge by making it easier to operate AI applications across different processors.
For Amazon, this could strengthen the appeal of Trainium while supporting its broader efforts to offer alternatives to Nvidia’s GPUs.
The startup’s work in real-time video and interactive environments could provide another opportunity as generative AI expands into applications requiring more complex computing capabilities.
Still, the reported negotiations leave several important questions unanswered, including whether the companies will reach a final agreement and how Decart’s technology would be integrated into Amazon’s existing AI operations.
For now, the potential $7 billion deal illustrates a broader shift in the AI race. Competition is no longer limited to building increasingly capable models or more powerful processors. The software connecting those models to computing infrastructure is becoming an equally important part of the equation.
If Amazon completes the acquisition, Decart could give it a stronger position in that increasingly competitive market.
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