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Amazon In Talks To Shell Out $7,000,000,000 For Israeli AI Startup After Anthropic Walked Away

Amazon founder Jeff Bezos (Photo via Flickr)

A tech giant could soon scoop up an artificial intelligence startup that one of the industry’s top labs passed on.

Amazon could pay roughly $7 billion to take over Decart, an Israeli developer of AI tools that alter live video and create virtual worlds for training robots, The Wall Street Journal reported Sunday. Anthropic, which considered paying about $6 billion for the AI startup, passed on the deal after vetting the company, Bloomberg reported Sept 7.

Amazon announced plans in April to invest upwards of $25 billion in the frontier AI company, Reuters reported. The company had already contributed $8 billion in funds to Anthropic by Nov. 2024, according to the New York Times.

An Amazon spokesperson declined to comment on the report when the Daily Caller News Foundation requested comment.

The deal would value Decart roughly $3 billion higher than in May, when the startup was already worth nearly $4 billion, according to WSJ.

Founded in Israel in 2023, Decart builds AI models that generate and edit video in real time, along with software that helps AI run faster on chips from Nvidia, Amazon Web Services (AWS) and Google TPU, according to WSJ.

Decart and Anthropic each did not immediately respond to the DCNF’s request for comment.

“Creators can make anything happen,” Decart stated in its July 23 YouTube announcement of Lucy 2.5, an AI video editing tool that transforms live video as it streams.

AWS gave Decart early access to its Trainium3 chip in Dec. 2025, and Amazon has since become one of the startup’s strategic customers, Ctech reported.

Trainium3 helped Decart generate real-time video content four times faster than graphics processing units (GPUs) at half the cost, Amazon claims. The company says some customers have cut AI costs up to 50 percent using Trainium chips.

Amazon has been developing its Trainium chips as an alternative to Nvidia’s GPUs, which dominate the market for AI training.