Key Notes
- The Wall Street Journal reports Amazon is discussing a roughly $7 billion Decart acquisition.
- Decart already works with AWS on Trainium.
- The startup develops Lucy, Oasis and AI optimization software.
Amazon is in talks to acquire AI startup Decart in a transaction that could value the company at around $7 billion, according to an October 11 report by The Wall Street Journal. The reported discussions would bring together Amazon’s cloud and chip business with a developer of real-time video models and AI optimization software.
Reuters, citing the Journal’s sources, said a deal could come together soon, although negotiations could collapse or another bidder could emerge. Reuters said it had not independently verified the report and that Amazon and Decart had not responded to its requests for comment. The potential Amazon Decart acquisition remains a reported negotiation, rather than an announced agreement.
Decart Combines AI Models With Computing Software
Founded in 2023, Decart develops both the models behind interactive visual experiences and the infrastructure used to run them. Its optimization stack, known as DOS, targets inference and training workloads across different accelerator architectures, including Nvidia GPUs, Google TPUs and AWS Trainium.
That makes Decart more than a video-generation company. Its software is intended to improve how effectively existing chips perform AI work, including through compiler and kernel optimization. For a cloud provider, better utilization can matter alongside buying more processors: the useful output from installed hardware helps determine what serving each workload costs.
Decart’s Lucy model transforms live video, changing objects, backgrounds, appearances and visual effects as a stream runs. The company markets applications across shopping, advertising, live streaming and gaming. These are interactive editing workflows, rather than simply generating a finished clip from a prompt.
Its Oasis 3 model generates controllable simulation environments for physical AI, initially focused on autonomous vehicles. Decart says the environment responds to control signals and provides synchronized camera views, allowing a policy to act and receive feedback. Such simulations are designed to support training and testing; their realism does not by itself establish that a vehicle is safe on public roads.
Amazon and Decart Already Work Together on Trainium
The companies’ existing technical relationship is public. In its May 18 funding announcement, Decart identified Amazon as a strategic customer and described an AWS commercial agreement and joint go-to-market effort. It also said Lucy 2 was running on Trainium3 following collaboration with AWS teams, including Annapurna Labs.
AWS separately lists Decart among its Trainium customers. The page includes Decart CEO Dean Leitersdorf’s account of early testing that improved frame throughput and cost efficiency while reducing latency. Those are partner-reported results, and the AWS listing documents the relationship before the acquisition report.
A purchase could therefore give Amazon closer control over software already optimized for its AI hardware. It could also connect Decart’s models more closely with AWS distribution. Those are possible strategic benefits, not integration plans confirmed by either company as part of these reported negotiations.
A Higher Price After Earlier Acquisition Interest
Decart announced a $300 million funding round in May, led by Radical Ventures with Nvidia among the new investors. The Journal put its May valuation at nearly $4 billion, according to Reuters. A price around $7 billion would represent a substantially higher headline valuation, although the reported figures do not establish the final transaction structure.
The startup has already attracted another potential buyer. Bloomberg reported that Anthropic had considered a roughly $6 billion acquisition and decided against proceeding in September after due diligence. No reason for that decision is established by the current report.
Why the Potential Deal Matters
The interest in Decart comes as world models expand beyond demonstrations into infrastructure for interactive systems. Our coverage of Odyssey-3 examined a related effort to combine generated environments, physical prediction and robot control. The common challenge is making continuous interaction useful, consistent and affordable.
For Amazon, Decart’s combination of models and computing software could offer a way to compete on both capabilities and operating costs. Whether that opportunity becomes an acquisition still depends on the negotiations. A signed agreement, confirmed terms and an explanation of how Decart would fit into Amazon’s business would be the next substantive developments.
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