Amazon Negotiates $7 Billion Acquisition of AI Startup Decart

This collaboration focused on Decart's software, which allows developers to switch between different AI chips and optimizes neural networks.

The company acquired the film and television studio MGM for $6.5 billion in 2022 and announced a deal to acquire satellite communications company Globalstar for approximately $11 billion in 2026.

1. Decart's proprietary software, known as DOS, significantly reduces the time required to optimize neural networks for specific processors. According to Siliconangle, the software cuts this optimization process from months to a few weeks. This efficiency gain could provide Amazon with a competitive edge in deploying AI models across its infrastructure.

2. Amazon has already established a technical relationship with Decart. In 2025, Amazon Web Services provided the startup with early access to its custom Trainium3 AI chips. This existing integration suggests a clear path for incorporating Decart's technology into Amazon's broader AI hardware ecosystem.

3. Decart offers specialized AI capabilities that complement Amazon's existing services. The startup developed the Oasis model for simulating environments in robotics and autonomous driving, alongside the Lucy model for real-time video editing. These tools expand the range of AI applications Amazon can offer to its cloud customers.

4. The startup has attracted significant backing from major venture capital firms. Investors include Sequoia Capital, Benchmark, and Radical Ventures, which led a $300 million funding round in May 2026. This institutional support indicates strong market confidence in Decart's underlying technology and business model.

1. Other major players have scrutinized Decart's value and potential. Anthropic considered acquiring the startup for $6 billion in August 2026 but decided against the deal after conducting due diligence. This rejection raises questions about the $7 billion valuation Amazon is currently negotiating.

2. Integrating a startup of this nature involves significant technical and operational challenges. While Decart's software optimizes neural networks, Amazon must ensure this technology scales effectively across its massive global infrastructure. Past large acquisitions, such as the $6.5 billion MGM deal, demonstrate the complexity of absorbing specialized firms into Amazon's corporate structure.

3. The acquisition would further consolidate AI technology within a single major tech conglomerate. By bringing Decart's proprietary software and models in-house, Amazon limits the availability of these tools to competitors. This trend of large tech companies acquiring specialized AI startups often draws regulatory scrutiny regarding market competition.

4. The $7 billion price tag represents a substantial capital outlay for Amazon. While the company has a history of large acquisitions, such as the $11 billion Globalstar deal in 2026, each major purchase requires significant resource allocation. Investors may question the immediate return on investment for such a high-priced acquisition in a volatile AI market.