Amazon Weighs $7 Billion Decart Deal in New Nvidia Challenge

what happened

Amazon is exploring the acquisition of artificial-intelligence startup Decart for roughly $7 billion, gurufocus.com reports, citing The Wall Street Journal. The discussions are still underway and may not result in a transaction. A deal could strengthen Amazon Web Services’ work on proprietary AI chips and its effort to challenge Nvidia.

Founded in 2023, Decart develops software that allows AI developers to shift workloads across different chip platforms. That capability could support Amazon as AWS invests heavily in Trainium processors, which are positioned as a lower-cost alternative to Nvidia’s dominant accelerators. AWS gave Decart early access to its Trainium3 chip in 2025.

Decart was reportedly valued at nearly $4 billion in May, making a potential $7 billion purchase a substantial premium. The startup is also developing AI world models, including Lucy and Oasis, which generate and simulate three-dimensional environments. Decart has raised more than $400 million from Sequoia Capital, Benchmark and Radical Ventures.

why it matters

The proposed acquisition would address Amazon’s software challenge as well as its chip-building effort. Easier workload migration could support Trainium adoption and reduce dependence on a single hardware ecosystem, while investors will watch AWS AI growth and whether Decart’s world-model technology gains commercial traction.

instruments