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Amazon is negotiating a potential acquisition of Israeli artificial intelligence startup Decart in a transaction that could reach approximately $7 billion, The Wall Street Journal reported Sunday, citing people familiar with the discussions.

According to the report, an agreement could be reached in the near future, although negotiations could still collapse or another potential buyer could enter the picture.

Decart was established in 2023 by Israeli engineers and brothers Dean and Orian Leitersdorf, together with Moshe Shalev.

The company specializes in artificial intelligence technologies, including its Nvidia-backed Lucy model, which enables users to modify live video in real time.

Decart has also developed Oasis, an AI model capable of generating simulated environments for training and testing robotics and autonomous driving systems.

The potential acquisition would represent a substantial increase in Decart's valuation. According to PitchBook data cited by The Wall Street Journal, the Israeli startup was valued at nearly $4 billion in May.

Amazon is not the first major technology company to explore acquiring Decart.

Bloomberg News reported that Anthropic considered purchasing the startup in August in a deal potentially worth $6 billion.

However, Anthropic decided against proceeding with the acquisition last month after completing its due diligence review.