Israeli AI startup Decart is in advanced talks to be acquired for $6 billion to $7 billion, with SpaceX and Amazon among the final bidders. The deal, which could be signed in the coming week, would represent a remarkably quick exit for the three-year-old company.
TL;DR
- Decart, an Israeli AI startup, is in advanced talks for a $6B-$7B sale.
- SpaceX and Amazon are among the final bidders, with SpaceX potentially establishing an R&D center in Tel Aviv.
- The deal would represent a substantial return for investors, but may not align with the founders' long-term ambitions.
What happened
Decart, an Israeli AI startup founded in 2023, is in advanced talks to be acquired for approximately $6 billion to $7 billion. The deal is expected to be signed in the coming week, according to Calcalist.
The original negotiations were with Nvidia, but a larger bid emerged from other interested parties, including SpaceX, Amazon, and Nebius. Decart declined to comment on the ongoing negotiations.
If the deal with SpaceX goes through, the company would establish its first R&D center in Tel Aviv, using Decart as its base. Elon Musk has been following Decart since 2024, when the company launched Oasis, a game based on its technology for generating video in real time.
Why it matters
For investors, a sale at $6 billion to $7 billion would represent a substantial return. Decart has raised approximately $450 million in funding since its founding, with its most recent $300 million round completed just three months ago at a valuation of approximately $4 billion.
However, the deal may not align with the long-term ambitions of Decart's founders, Dean Leitersdorf and Moshe Shalev. Leitersdorf has spoken about his desire to put Israel on the global AI map and create a company that could fundamentally change the world.
The acquisition would also have a significant impact on Israel's technology industry, potentially bringing a major new technology company into the country.
Key facts
- Decart is in advanced talks for a $6B-$7B sale, with SpaceX and Amazon among the final bidders.
- The deal could be signed in the coming week, according to Calcalist.
- SpaceX could establish its first R&D center in Tel Aviv if the deal goes through.
- Decart was founded in 2023 by Dean Leitersdorf and Moshe Shalev, both of whom served in Unit 8200 of the Israeli military.
- The company has raised approximately $450 million in funding since its founding.
- Decart's most recent funding round was a $300 million round completed three months ago at a valuation of approximately $4 billion.
- The company gained international attention with the launch of Oasis, a game based on its technology for generating video in real time.
- Decart is one of the few Israeli companies developing its own large AI models, with a particular focus on technology capable of generating video in real time.
Context
Decart's potential acquisition comes at a time of intense competition in the AI industry, with major tech companies vying for dominance in the field. The acquisition would represent a significant milestone for Israel's technology industry, which has seen a number of successful startups in recent years.
The deal also highlights the growing interest in AI startups from major tech companies, as they seek to acquire cutting-edge technology and talent to stay ahead of the competition. The acquisition of Decart would be one of the largest exits in the history of Israeli technology, potentially putting the company in the same league as some of the world's most closely watched AI companies.