Amazon in talks to buy AI start-up Decart for about $7 billion, report says
Representative image: Starkvisuals / Pixabay
Amazon is negotiating to buy AI start-up Decart for about $7 billion, a report said on 11 October 2026; Decart was valued at nearly $4 billion in May.
What Happened
Amazon is in talks to buy Decart, an AI start-up that builds models for real-time video and simulated worlds, in a deal valued at about $7 billion, according to a report on Sunday, 11 October 2026 that cited people familiar with the matter. The talks could still collapse or attract a rival bidder, and neither company has commented publicly. Decart was last valued at nearly $4 billion in May, when it raised $300 million in a round led by Radical Ventures, with Nvidia joining as a new investor.
Key Facts
- Reported price: about $7 billion, which would be close to double Decart's last valuation of nearly $4 billion.
- Status: talks only; reports say a deal could be agreed within days if negotiations hold, but no agreement has been announced.
- Products: Lucy, a model that edits live video in real time, and Oasis, which generates simulated environments used to train robots and self-driving systems.
- Chips: reports say Decart's software helps developers move AI workloads between different types of chips, and that Amazon Web Services gave Decart early access to its Trainium3 chip.
- Earlier interest: Anthropic was reported to have explored a deal of around $6 billion in August before walking away; other companies have also been linked to the start-up.
- Last funding round: $300 million in May 2026, led by Radical Ventures, with Nvidia as a new investor.
Why It Matters
Big technology companies are racing to own not just AI models, but the tools that make them run fast and cheaply. Decart's appeal to Amazon appears to rest on two things. Its real-time video models fit into a market for interactive media, gaming and live content that Amazon reaches through Prime Video, Twitch and its advertising business. Its simulation tools, which build virtual worlds to train robots and autonomous systems, fit Amazon's huge warehouse robotics operation.
The chip angle may matter most. Amazon is trying to persuade customers to run AI on its own Trainium chips instead of relying only on Nvidia's graphics processors, which are expensive and in short supply. Software that makes it easier to move AI work from one kind of chip to another would make Amazon's chips a more practical choice for developers. Buying the company that writes that software would give Amazon control of it.
The reported price also shows how fast valuations for AI start-ups are rising. A company valued at under $4 billion in May could sell for almost twice that five months later. Several large technology companies have reportedly looked at Decart this year, which suggests strong competition for a small number of teams with specialised AI skills. Acquisitions of this kind also draw scrutiny from competition regulators, who have been examining how big technology firms invest in and buy AI start-ups.
For India, the deal is a reminder of where the next wave of AI value may lie: in efficient, chip-flexible software and real-time media models, areas where Indian engineering teams and start-ups are active. Amazon is also a major cloud provider in India, so changes in what runs well on its chips can affect the costs that Indian companies pay to use AI.
| Item | Detail |
|---|---|
| Buyer (in talks) | Amazon |
| Target | Decart |
| Reported value | About $7 billion |
| Last valuation | Nearly $4 billion (May 2026) |
| Key products | Lucy (real-time video), Oasis (simulated worlds) |
Impact
Short-term: The talks may conclude within days or fall apart; until a deal is signed, the figures remain those reported by people familiar with the talks. Rival bidders could still emerge.
Long-term: If completed, the purchase could strengthen Amazon's push to make its Trainium chips a mainstream choice for AI work and give it new tools for video, gaming and robotics.
Who is affected: Amazon and its cloud customers, developers who train and run AI models, rival chip makers including Nvidia, AI start-ups and their investors, and competition regulators.
Key Takeaway
Amazon is reported to be negotiating a roughly $7 billion purchase of AI start-up Decart, whose software helps AI run across different chips, but no deal has been signed.
Questions and Answers
What is Decart?
An AI start-up that makes Lucy, a model that edits live video in real time, and Oasis, which creates simulated environments for training robots and self-driving systems.
How much would Amazon pay?
Reports put the deal at about $7 billion. Decart was valued at nearly $4 billion when it raised $300 million in May 2026.
Has the deal been finalised?
No. Reports on 11 October 2026 said the companies were in talks that could still break down or draw another bidder. Neither company has commented.
Why would Amazon want Decart?
Reports say Decart's software helps move AI workloads between different chips, which could make Amazon's own Trainium chips more attractive, and its video and simulation models fit Amazon's media and robotics businesses.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
CERT-In warns fintechs of payment API hijacks moving money to mule accounts
Software developer job postings rise again, but senior and AI roles take most gains
Reported, fact-checked and published by the Peepals Global Editorial Team.
