Amazon is in talks to buy artificial intelligence startup Decart in a deal worth about $7 billion, according to a report published on Sunday. The proposed deal could strengthen Amazon’s position in the fast-growing AI market.
The talks are still ongoing, and an agreement is not certain. The deal could happen soon if discussions continue without problems or another buyer does not make a competing offer, the report said.
Amazon did not comment outside its normal business hours. Decart did not respond to requests for comment.
Decart develops AI models that can create and change digital content. Its technology includes tools for live video editing and systems that generate virtual worlds for testing advanced machines.
One of its products is Lucy, an AI model that can edit video in real time. The company says the model can change live video as it happens. Nvidia, a major maker of AI chips, has backed the startup.
Decart has also developed Oasis, a model that creates simulated environments. These digital worlds can help train and test robots and self-driving systems.
Such technology could be useful to companies that need safe and flexible ways to test machines before using them in the real world. Simulations can allow developers to examine how robots and autonomous vehicles respond to different conditions.
The possible Amazon Decart AI deal comes as large technology companies seek new ways to build their AI businesses. Firms are investing in models, computing power and tools that can support new services.
Amazon has already made major investments in artificial intelligence. Its cloud business, Amazon Web Services, provides computing services used by companies to develop and run AI systems. Buying Decart could give Amazon access to new technology and a team focused on AI-generated video and simulated environments.
The reported price would mark a sharp increase from Decart’s earlier valuation. The startup was valued at nearly $4 billion in May, according to data cited in the report. A deal at around $7 billion would place its value well above that level.
Decart raised $300 million in May in a funding round led by Radical Ventures. Nvidia also joined as a new investor in that round.
The funding gave Decart more resources to develop its products and expand its work in AI. Support from investors also reflects interest in systems that can create digital content and simulate real-world settings.
Amazon is not the only major technology company to have considered buying the startup. Anthropic explored a possible acquisition of Decart in August, with the deal reportedly valued at about $6 billion.
However, Anthropic later decided not to move forward after carrying out due diligence, according to a separate report last month. Due diligence is the process a company uses to examine a potential deal before deciding whether to proceed.
The reported discussions with Amazon suggest that Decart remains an acquisition target despite the earlier talks ending. It is not clear why Anthropic chose not to pursue the deal, and neither company has publicly explained the decision.
The potential purchase also highlights the growing value of AI companies that offer more than text-based chat tools. Video generation, robotics and autonomous driving are areas where developers are seeking systems that can respond to changing conditions and produce realistic digital environments.
For Amazon, acquiring Decart could provide technology that supports future AI products and research. It could also help the company compete with rivals that are spending heavily to develop advanced AI systems.
Still, the reported deal remains under discussion. Its final value, terms and timing have not been confirmed. The talks could also end without an agreement if the companies fail to reach acceptable terms or another potential buyer enters the process.
For now, investors and the technology industry will be watching to see whether Amazon moves ahead with one of its reported largest AI acquisitions.
