- Amazon.com Inc. (NASDAQ: AMZN) is reportedly negotiating to acquire artificial intelligence startup Decart in a deal valued at around $7 billion, potentially giving Amazon Web Services (AWS) technology designed to help developers run AI workloads more efficiently across different processors.
The potential acquisition, reported by The Wall Street Journal, would deepen Amazon’s investment in AI infrastructure as cloud providers seek ways to meet rising computing demand and compete with Nvidia Corp. (NASDAQ: NVDA).
The discussions remain ongoing, and a deal has not been confirmed. The Journal reported that an agreement could come together soon if negotiations do not break down and no competing buyer emerges. Reuters’ coverage of the reported negotiations also noted that the proposed transaction could be valued at approximately $7 billion.
Decart develops software that helps AI developers move workloads between different chips. That capability could become increasingly valuable as cloud providers expand their own processors and customers look for ways to manage the cost of training and running AI models.
The startup has also developed AI systems known as Lucy and Oasis, which can generate or simulate real-time video and three-dimensional environments. Those capabilities could extend the potential applications of its technology beyond conventional AI model training.
Why Decart Could Strengthen Amazon’s AWS AI Chip Strategy
Amazon has been developing its own AI processors through AWS, including its Trainium line, as it seeks to offer customers alternatives to Nvidia’s dominant graphics processing units. The company’s cloud division provides both Nvidia-based computing and its own custom silicon.
Decart’s software could complement that strategy by helping developers optimize AI applications for different processors. If workloads can be adapted more easily to Trainium, AWS could make its own chips more attractive to customers seeking performance and cost efficiencies without being locked into a single hardware platform.
Amazon had already established a relationship with Decart before the reported acquisition talks. AWS gave the startup early access to its Trainium3 chip in 2025, according to the Journal. AWS has also described Decart as a customer using Trainium for real-time generative video workloads in its official Trainium customer materials.
That existing relationship could give Amazon insight into how Decart’s software works with its hardware. An acquisition would potentially allow the company to integrate the technology more closely into its cloud services, although the companies have not announced specific plans for integration.
The strategic rationale is tied to the economics of AI computing. Training and operating advanced models require substantial processor capacity, and companies are looking for ways to improve utilization while controlling infrastructure costs. Amazon’s Trainium3 platform is designed to offer higher performance and energy efficiency for AI workloads, while software that helps developers use those chips effectively could strengthen the overall offering.
The proposed deal also comes as major cloud providers increase investment in data centers, processors and AI services. Goldman Sachs’ forecast for hyperscaler AI spending highlights the scale of investment expected across the industry, with spending directed toward computing hardware and the infrastructure needed to operate AI systems.
Decart’s Valuation and the Competitive Stakes for Amazon
Decart was valued at nearly $4 billion in May 2026 and has raised more than $400 million from investors, including Sequoia Capital, Benchmark and Radical Ventures, according to the Journal’s report. A transaction valued at approximately $7 billion would therefore represent a substantial increase over its most recent reported valuation.
The startup was founded in 2023 by Israeli engineers Dean and Orian Leitersdorf, who are brothers, and Moshe Shalev. Its work on AI software and simulated environments has attracted interest as companies seek technology that can help them develop and deploy models more efficiently.
Amazon is not the first major technology company reported to have considered buying Decart. Bloomberg reported that Anthropic explored a potential acquisition valued at around $6 billion before deciding not to proceed following due diligence. The reported Amazon talks would place Decart among a growing group of AI startups attracting multibillion-dollar acquisition interest.
For Amazon, the potential benefit extends beyond adding another AI product. AWS competes with Microsoft Azure and Google Cloud for enterprise workloads, while Nvidia remains a major supplier of the processors used to train and run AI models. Software that makes Amazon’s own chips easier to use could help the cloud division compete on both infrastructure cost and performance.
Amazon’s broader AI investment is already a major part of its growth strategy. The company has been expanding its custom chips and cloud-based AI services as businesses move from experimenting with generative AI to deploying it in production. Its AI infrastructure strategy illustrates how AWS, custom silicon and cloud services are linked to the company’s efforts to capture more AI spending.
However, the reported price also raises questions about execution and returns. Decart’s technology would need to deliver measurable benefits for AWS customers and fit into Amazon’s existing hardware and software ecosystem. The acquisition could strengthen Amazon’s AI offering, but it would not automatically eliminate Nvidia’s competitive advantages or guarantee that customers shift workloads to Trainium.
For now, the reported negotiations remain unconfirmed. If completed, the deal would signal that Amazon sees AI software optimization as an important part of its chip strategy, alongside manufacturing its own processors and expanding cloud capacity. Investors will be watching for confirmation of the transaction, its final value and any details about how Decart’s technology would be incorporated into AWS.