Amazon is currently in discussions to acquire the AI startup Decart for approximately $7 billion. The startup specializes in software that facilitates switching between various AI chips and develops models capable of simulating 3D environments, such as Lucy and Oasis.

Founded in 2023, Decart has secured over $400 million in venture funding from investors including Sequoia Capital, Benchmark, and Radical Ventures. In May, the company was valued at nearly $4 billion, making the potential acquisition price significantly higher than its previous valuation.

Amazon aims to bolster its AI infrastructure through this deal, particularly as it develops its own Trainium chips to compete with Nvidia. AWS previously granted Decart early access to its Trainium3 hardware in 2025.

Meanwhile, Nvidia is exploring options regarding the startup Reflection AI, including potential acquisition, additional investment, or an acqui-hire. Nvidia has already invested $800 million into the firm, which was valued at $25 billion in March.

Reflection AI focuses on open-source models that allow businesses to run AI on their own hardware. Nvidia views support for these models as a strategic move to strengthen its ecosystem and maintain competitiveness against alternative developers.