Anthropic is reportedly negotiating the purchase of Israeli artificial-intelligence start-up Decart AI for roughly $6 billion, according to people familiar with the talks.
What the deal entails
Decart AI specialises in "world models" that simulate physical environments and in software that makes AI training cheaper by improving chip efficiency. The latter could allow Anthropic's existing data-centre capacity to handle higher demand, a point highlighted by a source close to the negotiations.
Why the acquisition matters
Anthropic, which has rarely pursued large-scale takeovers, has been investing heavily in computing power to develop new products and serve a growing client base. Adding Decart's technology would give Anthropic a foothold in sectors such as autonomous driving and fashion e-commerce, where realistic video rendering has long been a challenge.
Decart's flagship model, Lucy AI, can ingest live video of a person and generate a high-resolution stream that makes it appear the individual is trying on clothing or accessories. The capability addresses a persistent problem for online retailers, and e-commerce platform eBay, an investor in Decart, already uses the technology.
What could happen next
If the transaction closes, Decart's team would be integrated into Anthropic's inference and performance division. The deal would become Anthropic's largest known acquisition, preceding a highly anticipated initial public offering.
The talks are not yet finalised and could collapse, said the sources, who asked to remain anonymous. Both companies declined to comment.
Background on Decart AI
Founded in 2023 by brothers Dean and Orian Leitersdorf and engineer Moshe Shalev, Decart raised $300 million in May in a round led by Radical Ventures, with participation from Nvidia, Atreides Management, Valor Equity Partners and Adobe Ventures. Earlier investors included Sequoia Capital, Benchmark and Zeev Ventures, valuing the start-up at nearly $4 billion.
"I really can't imagine being in any other market," Dean Leitersdorf told Bloomberg at the Raise AI conference in Paris. "This market is moving so fast. We get to reinvent every different aspect of the economy in the next 18 to 24 months."
Decart's AI is also used for live streaming on platforms such as Twitch, TikTok and YouTube, and by advertising agencies. An Israeli business outlet reported that SpaceX had shown interest in acquiring Decart, a claim that billionaire Elon Musk dismissed as "fake news" on his X platform.
Both Anthropic and rival OpenAI have pledged to spend tens, if not hundreds, of billions of dollars on data-centre infrastructure. Their escalating hardware needs underscore the strategic value of acquisitions like this, as AI firms prepare for upcoming Wall Street listings.