Amazon in Talks to Acquire AI Startup Decart for Around $7 Billion

Amazon is negotiating the acquisition of AI startup Decart for around $7 billion, according to a report by The Media Line citing The Wall Street Journal.

Decart was founded by Israelis and is headquartered in San Francisco. It specializes in real-time video editing tools and building interactive world simulation models, technologies used to generate digital environments that users interact with inside applications and games.

The company's valuation reached about $4 billion last May, meaning the potential deal price significantly exceeds its recent valuation. If completed, it would be one of the largest sales of an Israeli tech company ever.

The report notes that negotiations are still ongoing and may end without an agreement, as neither company has announced a final deal yet. This comes at a time when major tech companies are accelerating acquisitions of AI startups at high valuations.

What do these terms mean?

Acquisition: The purchase of one company by another with the aim of owning and controlling its operations. The deal may be in cash, stock, or a combination of both.

Company Valuation: The estimated market value of a company based on its business volume, profits, and growth prospects, which changes from one funding round to another.

Exit: Founders or investors selling their shares in a startup, whether through an acquisition or an initial public offering (IPO), to convert their investment into cash.