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Amazon Is in Talks to Buy AI Startup Decart for Around $7 Billion, WSJ Reports

Amazon is in talks to acquire AI startup Decart in a deal that could be valued at around $7 billion, according to a Sunday report — a move that would give Amazon a real-time video and world-model team it does not currently own. Why it matters: if the talks land, one of the biggest prizes in generative video changes hands, and Amazon gains technology that fits naturally alongside its cloud and media businesses.

October 11, 2026

What happened

The Wall Street Journal reported on Sunday that Amazon is discussing an acquisition of Decart, citing people familiar with the matter. Reuters reported the Journal’s account the same day and noted it could not immediately verify the story on its own. Neither Amazon nor Decart responded to requests for comment in that reporting, and the talks could still fall apart or draw another bidder.

That caution matters. This is a reported negotiation, not an announced deal, and no terms beyond the roughly $7 billion valuation figure have been made public.

What Decart actually builds

Decart is best known for two lines of work. Its Lucy model is designed to edit live video in real time — the kind of capability that matters for streaming, live shopping, and interactive video products. The company has also built Oasis, a model that generates simulated environments intended for training and testing systems such as robots and autonomous-driving software.

Put simply, Decart works on AI that generates and changes moving worlds, not just text or still images. That is a different specialty from the large language models that dominate most acquisition headlines.

Why the price tag jumped

Decart was valued at nearly $4 billion in May, according to PitchBook data cited in the Journal’s reporting. In that same month the company raised $300 million in a round led by Radical Ventures, with Nvidia joining as a new investor.

Amazon is also not the first big name to look closely. Bloomberg previously reported that Anthropic explored a deal in August at a potential value of around $6 billion, then decided last month not to pursue an acquisition after due diligence. That history cuts both ways: it confirms serious buyer interest, and it shows at least one suitor walked away after a closer look.

Why it matters

For readers, the practical takeaway is about where the AI race is moving. The most contested ground is shifting from chatbots toward video, simulation, and systems that can model a changing environment — capabilities with clear uses in media, commerce, robotics, and driver training. A buyer like Amazon has obvious places to put each of those: cloud customers who need simulation, sellers and streamers who need live video tools, and internal teams working on automation.

None of that guarantees a deal. Talks at this stage fail regularly, prices move, and regulators can slow large acquisitions. But the reported figure alone tells a story: a startup valued near $4 billion in May is now discussed at around $7 billion, months after another major lab considered paying roughly $6 billion. Everything AI, tested — and, increasingly, everything AI video, bid for.

Frequently asked questions

Is Amazon buying Decart?

Not yet, based on the available reporting. Amazon is reported to be in talks about an acquisition valued at around $7 billion. No deal has been announced, and neither company commented in the Reuters report.

What does Decart make?

Decart makes Lucy, a model for editing live video in real time, and Oasis, a model that generates simulated environments for training and testing robotics and autonomous-driving systems.

How much was Decart worth before these talks?

PitchBook data cited by the Journal put Decart’s valuation at nearly $4 billion in May 2026, when it also raised $300 million led by Radical Ventures with Nvidia participating.

Sources: Reuters, The Wall Street Journal (via Reuters), Bloomberg (via Reuters)

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