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Amazon Eyes $7B Deal for AI Chip Upstart Decart

Amazon's $7 Billion Bet on Chip Freedom

Amazon is negotiating to acquire Decart, a San Francisco-based AI startup, for about $7 billion, according to The Wall Street Journal. If the talks hold and no surprise bidders jump in, the deal could close soon. It's a telling move in a world where AI chips are scarce and every tech giant wants to control its own computing destiny.

Why Decart? It Makes AI Chips Interchangeable

Decart builds software that lets developers switch between different AI chips without rewriting their code. Think of it as a universal translator for hardware. As companies scramble for GPUs, this kind of flexibility is gold—it means you're not chained to one supplier. For Amazon, which runs the massive AWS cloud, owning that capability could be a powerful selling point for customers who want options.

A Star-Studded Past—and a Near Miss with Anthropic

Decart isn't an overnight success. PitchBook data shows it has raised over $400 million from big names like Sequoia Capital, Benchmark, and Radical Ventures. In May, its valuation approached $4 billion. Then in August, Bloomberg reported that Anthropic was close to buying Decart for around $6 billion. But by September, Anthropic had walked away. Now Amazon is at the table, and Decart's future is up in the air again.

The Bigger Picture: Cloud Wars and Chip Anxiety

Amazon's interest goes beyond just buying cool tech. AWS dominates cloud computing, but rivals like Microsoft and Google are making their own chip moves. By owning Decart's cross-chip software, Amazon could offer customers a way to run AI workloads on whichever chip is cheapest or fastest—without getting stuck. That's a strong pitch in a market where chip shortages and soaring costs are constant headaches.

What Happens Next?

Nothing is final yet. The talks could still fall apart, and other bidders might emerge. But if Amazon pulls it off, it won't just be buying a startup—it'll be buying a key to a more flexible AI future. And for Decart, after a rollercoaster year, it could finally land in the arms of a tech giant.

Key Points:

  • Amazon is in talks to acquire Decart for around $7 billion.
  • Decart's software enables seamless switching between different AI chips.
  • The startup has raised over $400 million and was previously courted by Anthropic.
  • The deal highlights Amazon's push to control computing power and strengthen AWS.
  • Negotiations are ongoing and could still fall through.