Amazon could be preparing one of its biggest artificial intelligence investments yet, with the technology giant reportedly in talks to acquire AI startup Decart in a deal worth around $7 billion.
According to a report by The Wall Street Journal, which cited people familiar with the matter, discussions between the two companies are ongoing. The deal has not been finalised, and its completion will depend on whether negotiations progress without falling apart or another potential buyer enters the picture.
The reported acquisition would give Amazon access to technology developed by a startup working on real time video editing and AI generated virtual environments. Both areas could become increasingly important as companies explore new applications for generative AI, robotics and autonomous driving.
Amazon has not commented on the reported negotiations outside regular business hours, while Decart has not responded to requests for comment.
If the acquisition goes ahead at the reported valuation, it would represent a significant investment in specialised AI technology. It would also underline Amazon’s interest in securing capabilities that could strengthen its position in an increasingly competitive AI market.
What Makes Decart’s AI Technology Stand Out?
Decart has developed AI systems designed to create and modify visual environments, with potential applications extending beyond conventional image generation.
One of its key products is Lucy, an AI model capable of editing live video in real time, according to the company’s website. The technology could have applications in interactive video experiences, digital content production and other services where visual changes need to happen almost instantly.
Real time processing is an important distinction in this area. Instead of generating a finished image or video clip and requiring users to wait for the result, systems designed for live editing can potentially modify visual content as events unfold.
This type of technology could prove useful for developers building interactive applications, creative tools and immersive digital experiences. However, its practical value will depend on factors such as performance, computing costs and how easily it can be integrated into existing products.
Decart has also developed Oasis, a model that generates simulated environments. These environments could help developers train and test robotics systems and autonomous driving technology.
Simulations are valuable because they allow developers to expose AI systems to a wide range of situations without relying entirely on physical testing. For autonomous vehicles, for example, simulated environments can help reproduce different road conditions and unusual scenarios. Robotics developers can also use virtual settings to test how machines respond to their surroundings.
For a company investing heavily in cloud computing and AI infrastructure, access to technology of this kind could offer several potential opportunities. However, the precise role Decart would play within Amazon remains unclear, as the reported acquisition has yet to be confirmed.
Decart’s Valuation Has Climbed as AI Investment Grows
The reported $7 billion price tag would mark a substantial increase on Decart’s previously reported valuation.
According to The Wall Street Journal, citing PitchBook data, the startup was valued at nearly $4 billion in May 2026. A deal at around $7 billion would therefore place a significantly higher value on the business within a relatively short period.
Decart raised $300 million in May in a funding round led by Radical Ventures. Nvidia also joined the startup as a new investor in that round, adding support from a major player in the AI computing industry.
Nvidia’s involvement is notable because advanced AI models often depend on substantial computing resources to develop, train and operate. Its investment also highlights the interest that established technology companies and investors have in startups developing specialised AI capabilities.
A higher acquisition valuation does not necessarily mean the startup’s technology has become proportionately more valuable in commercial terms. The final price would reflect negotiations, expectations for future growth, the company’s technology and the strategic benefits a buyer believes it can secure.
For Amazon, the potential attraction may extend beyond Decart’s existing products. Acquiring a specialised AI company could provide access to its technical expertise, researchers and intellectual property, potentially allowing Amazon to develop new services more quickly than it could by building every capability internally.
Nevertheless, the reported valuation remains part of an ongoing negotiation rather than a confirmed purchase price.
Previous Interest From Anthropic Adds Context
Amazon is not the only major technology company reportedly to have explored a possible acquisition of Decart.
Anthropic considered a potential deal valued at around $6 billion in August 2026, according to a Bloomberg News report cited by Reuters. However, Anthropic decided not to pursue the acquisition after conducting due diligence, Bloomberg reported last month.
The reported decision does not establish why Anthropic walked away, and there is no confirmed indication that its reasons were connected to the current discussions with Amazon.
Still, the earlier interest illustrates how Decart has attracted attention from companies operating at the forefront of AI development. The difference between the reported $6 billion proposal explored by Anthropic and Amazon’s reported $7 billion discussions also shows how acquisition valuations can vary between potential buyers and negotiations.
Each company would assess a startup according to its own strategic priorities, technology requirements and expectations for future returns.
Amazon has several potential reasons to examine Decart’s technology, particularly if it sees opportunities to apply real time video processing or simulated environments across its broader AI ecosystem. But those possibilities remain prospective, and the available information does not establish which products or business units would benefit from an acquisition.
For now, the key question is whether the discussions lead to a formal agreement. The Wall Street Journal’s report suggests a deal could happen soon if negotiations continue successfully, although the possibility of talks breaking down or another interested buyer emerging remains.
If completed, the acquisition would be another major development in the race to secure advanced AI technology. Until Amazon or Decart confirms an agreement, however, the reported $7 billion transaction should be treated as a potential deal rather than a completed acquisition.
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