Amazon Eyes $7B AI Startup Decart in Blockbuster Deal

Amazon is in advanced talks to acquire artificial intelligence startup Decart for approximately $7 billion, The Wall Street Journal reported on Tuesday, citing people familiar with the matter. The potential deal, which could be announced in the coming weeks, would represent one of Amazon's largest acquisitions in the AI space and a significant bet on the next generation of AI technology.

Decart, an AI startup that has developed technology for real-time video generation and interactive AI experiences, has attracted attention for its innovative approach to generative AI. The reported $7 billion price tag would value the company at a substantial premium, reflecting the intense competition among tech giants to secure top AI talent and intellectual property. Amazon has been aggressively expanding its AI capabilities, investing billions in its own AI initiatives and partnering with companies like Anthropic, in which it has invested $4 billion. The acquisition of Decart would bolster Amazon's position in the AI race against rivals like Microsoft, Google, and Meta.

If completed, the deal could reshape the competitive landscape in AI-powered video and interactive media, giving Amazon a key differentiator in cloud services and consumer applications. However, the acquisition may face scrutiny from regulators amid growing antitrust concerns over Big Tech's expansion. Neither Amazon nor Decart has commented publicly on the talks, and the deal could still fall through. Industry analysts suggest that the move signals Amazon's determination to lead in AI innovation, but also highlights the soaring valuations in the AI sector and the risks of overpaying in a hype-driven market.