American tech giant Amazon is in talks to acquire AI startup Decart for roughly $7 billion, according to the Wall Street Journal.
The WSJ reported Sunday, citing sources familiar with the matter, that a deal could happen soon if negotiations don't fall through or another suitor doesn't emerge.
The potential acquisition comes after Anthropic had considered acquiring Decart for $6 billion but ultimately walked away from the deal, according to a September report from Bloomberg.
Founded in 2023, Decart builds generative systems that produce interactive video and simulated environments frame by frame with low latency, according to its website. In July, the company introduced its Lucy 2.5 model, which it said could help users seamlessly swap characters, change clothing, and edit scenes using text prompts while video streams live.
Decart has raised over $400 million in venture capital funding, with its valuation approaching $4 billion as of May, the WSJ reported, citing data from PitchBook.
In May, the company announced a $300 million funding round led by Radical Ventures. The round attracted new investors including Nvidia, eBay Ventures, and Atreides Management, alongside existing backers Sequoia Capital, Benchmark, and Zeev Ventures.
Amazon declined The Latent's request for comment on the reported acquisition talks. Decart did not immediately respond to a request for comment.
