Amazon discusses potential seven billion dollar purchase of AI developer Decart

Amazon.com Inc. is reportedly engaged in discussions over a possible acquisition of artificial intelligence developer Decart.ai Inc. The deal is valued at up to $7 billion according to reports citing people familiar with the matter. A Wall Street Journal report says a transaction could be wrapped up in the coming days.

The startup has developed software called DOS that makes it easier for developers to run AI models on different processors. In most AI workloads, developers must optimize a neural network for the chip they plan to use. This process used to take months, but with DOS the workflow can be compressed into just a couple of weeks.

As a result, companies can use Decart’s software to shift AI workloads to different processors if their requirements change. They can also move tasks if chip availability becomes an issue. This capability has proven to be valuable as companies secure computing infrastructure for AI applications.

The technology could be very useful for Amazon Web Services Inc., the cloud computing arm of Amazon. AWS offers its own custom AI processors known as Trainium3 for training models. Decart reportedly obtained early access to these chips last year before wider availability.

In addition to DOS, Decart is also a model developer responsible for creating world models. The company created the Lucy and Oasis models which are designed to generate realistic three-dimensional environments. These simulate settings for video games, robotic training and other use cases.

The startup was founded in 2023 by a trio of Israeli software engineers. The founders include brothers Dean and Orian Leitersdorf and Moshe Shalev. They built the core technology to speed up AI processing tasks significantly.

Decart most recently raised $300 million at a $4 billion valuation in May. This brought its total amount raised to over $400 million overall. Its main investors include Radical Ventures, Nvidia Ventures, Adobe Ventures, Sequoia Capital and Benchmark.

Last month, Anthropic PBC was reportedly engaged in talks to buy Decart according to a Bloomberg report. It ultimately pulled out of a reported $6 billion deal after conducting due diligence on the startup. It is not clear what ultimately dissuaded Anthropic from pursuing the deal.