Reducing Nvidia Dependence:

Decart’s technology enables efficient execution of AI models and seamless switching between different chip manufacturers, bolstering Amazon’s AI self-reliance and curbing reliance on external vendors like Nvidia.
Reports across global financial media indicate that Amazon is in advanced talks to acquire Israeli startup Decart for an estimated $7 billion. Rather than an isolated transaction, the potential deal represents the continuation of a core strategic doctrine built over more than a decade. At the heart of this strategy lies what is widely considered one of the most lucrative acquisitions in tech history: Amazon’s $350 million purchase of Yokneam-based Annapurna Labs in January 2015.
Annapurna was founded in May 2011 by Bilha (Nafaa) Bshara and Ronen Boneh, alongside chairman and principal investor Avigdor Willenz. Operating under the radar without traditional venture capital funding, the team maintained complete architectural independence. At the time, Amazon Web Services (AWS) relied heavily on third-party silicon from vendors like Intel and AMD, which constrained its ability to optimize server hardware and lower infrastructure costs. Post-acquisition, Annapurna became Amazon’s in-house silicon engine, developing the Graviton CPUs, Nitro architecture, and Trainium/Inferentia AI accelerator chips.

Commitment to Israeli R&D:

The deal underscores the critical role of Israeli innovation in Amazon’s long-term cloud and AI strategy, following a high-profile visit by Amazon CEO Andy Jassy and AWS CEO Matt Garman to the Haifa R&D center in January 2025.
The financial impact of the Annapurna acquisition has been monumental. Today, Annapurna-developed silicon underpins AWS services generating tens of billions of dollars in annual revenue, with analysts estimating that Annapurna would command a valuation exceeding $50 billion as an independent entity. Beyond top-line revenue, in-house chip development saved Amazon tens of billions of dollars in CapEx that would have otherwise been paid to external suppliers. The strategic importance of Israel to AWS was reinforced in January 2025, when Amazon CEO Andy Jassy and AWS CEO Matt Garman made an official visit to the company’s Haifa R&D center.
Now, Amazon’s pursuit of Decart at a $7 billion valuation signals an intent to repeat this playbook in the AI era. Decart’s technology—designed to optimize AI model execution and allow seamless interoperability across heterogeneous chip architectures—will enable Amazon to strengthen its proprietary AI stack, reduce its exposure to Nvidia’s supply chain, and gain end-to-end control over costs and performance.