Amazon is in advanced discussions to acquire Israeli-founded artificial intelligence startup Decart AI in a transaction valued at approximately $7bn, US media reported.

Unlike certain other companies linked with Decart, Amazon has an existing working partnership with the AI startup. Under the agreement, Amazon’s enterprise customers can deploy Decart's technology across media, commerce, advertising, and physical AI applications.

The two companies originally established technical alignment in 2025, when Amazon granted Decart early access to its Trainium3 silicon. Decart also develops dynamic 3D generative world models, including its Oasis and Lucy platforms.

The potential mega-deal marks a steep valuation jump for the San Francisco-based startup, a 75% premium over its $4bn valuation from May.

Decart, founded in 2023 by Dean Leitersdorf, Orian Leitersdorf, and Moshe Shalev, has raised over $400mn from institutional backers including Sequoia Capital, Benchmark, and Radical Ventures. If it closes, the $7bn transaction would be one of the largest corporate exits in Israeli tech history.

For Amazon, the acquisition forms a critical defensive and offensive manoeuvre to challenge Nvidia’s dominance across AI silicon infrastructure. Decart engineers software that allows developers to seamlessly switch workloads between disparate AI chip architectures, a capability Amazon intends to leverage to accelerate customer adoption of its proprietary AWS Trainium processors.

While the acquisition would rank alongside Amazon’s previous major capital deployments, including its $6.5bn takeover of MGM in 2022 and its recent $11bn purchase of Globalstar, the discussions remain non-binding, with deal completion contingent on final terms and potential competing interest.