Amazon in Talks to Acquire AI Startup Decart in $7 Billion Deal
Amazon is in talks to acquire artificial intelligence startup Decart in a deal valued at approximately $7 billion, according to a report by The Wall Street Journal on Sunday. The potential acquisition would mark a significant investment by the e-commerce and technology giant in advanced AI technologies, including real-time video editing and simulation models.
Decart has developed several AI technologies designed for applications across video processing, robotics and autonomous driving. Its Lucy model, backed by Nvidia, can edit live video in real time, according to the company's website. The technology enables users to modify video content as it is being streamed, highlighting the startup's focus on real-time generative AI applications.
The company has also developed Oasis, an AI model that generates simulated environments. These environments can be used to train and test robotics and autonomous-driving systems, providing developers with virtual settings to evaluate and improve the performance of their technologies.
According to The Wall Street Journal, Decart was valued at nearly $4 billion in May, citing data from PitchBook. The reported $7 billion acquisition valuation would represent a substantial increase from the startup's previous valuation.
Amazon declined to comment on the reported acquisition outside regular business hours, while Decart did not respond to requests for comment. The Journal reported that a deal could materialise soon, provided the ongoing discussions do not collapse or another potential buyer enters the process.
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The reported talks follow an earlier acquisition attempt involving AI company Anthropic. Last month, Anthropic decided against pursuing a deal for Decart after conducting due diligence. The company had explored a potential acquisition valued at approximately $6 billion in August, the report added.
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In May, Decart raised $300 million in a funding round led by Radical Ventures, with Nvidia joining as a new investor. The funding highlighted investor interest in the startup's AI capabilities and its potential applications across multiple industries.
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If completed, the proposed acquisition would strengthen Amazon's position in the increasingly competitive AI market, where technology companies are investing heavily in advanced models and infrastructure to expand their capabilities and commercial applications.