Amazon, Nvidia step up AI bets: Inside the reported $7B Decart deal and Reflection AI talks

Amazon is in talks to acquire artificial intelligence startup Decart in a deal that could value the company at around $7 billion, while Nvidia is exploring a potential acquisition or deeper investment in US AI startup Reflection AI, according to reports.

The discussions highlight how major technology companies are seeking to strengthen their positions in the artificial intelligence market through acquisitions, investments and partnerships with emerging AI developers.

According to a WSJ report dated October 11, Amazon's negotiations with San Francisco-based Decart could result in a deal soon, although the discussions could still fall apart or attract another potential buyer.

Separately, the FT reported on October 10 that Nvidia was in early-stage talks with Reflection AI about several possible arrangements, ranging from a full acquisition to an acqui-hire, a further equity investment or an agreement to supply additional chips and computing capacity.

Neither potential deal has been confirmed, and the discussions remain subject to change.

Amazon's proposed $7 billion deal for Decart

Decart develops software that helps developers switch between different AI chips, a capability that is becoming increasingly important as technology companies compete for computing resources to train and operate AI models.

Founded in 2023 by Israeli engineers and brothers Dean and Orian Leitersdorf, along with Moshe Shalev, the startup has raised more than $400 million in venture capital funding from investors including Sequoia Capital, Benchmark and Radical Ventures, according to PitchBook data cited by the WSJ.

Decart was valued at nearly $4 billion in May, the report said. A potential acquisition at around $7 billion would represent a substantial increase over that valuation.

The company is also developing world models, including Lucy and Oasis. These models can generate and simulate three-dimensional environments representing aspects of the real world.