Anthropic Eyes $6 Billion Acquisition of Israeli AI Startup Decart

Anthropic, a US-based AI giant and developer of large language models (LLMs), is reportedly eyeing to acquire Israeli AI startup Decart for as much as $6 billion. This would be Anthropic's first acquisition in Israel and its biggest deal to date.

Decart was launched in late 2023 by Dean Leitersdorf and Moshe Shalev, both former members of Israel's military intelligence unit 8200. The startup has built a software platform that trains massive, real-time generative AI models across Nvidia, Amazon, and Google processors.

Decart's unique selling point (USP) lies in its ability to optimize the utility of chips needed for training and running AI models, cutting computing costs by making chips work more efficiently. This has caught the attention of large AI firms, with Nvidia Corp., Atreides Management, Valor Equity Partners, and Adobe Ventures participating in Decart's $300 million funding round last May.

The deal assumes significance as OpenAI and Anthropic plan to spend billions on data centers stocked with costly chips, which could be slashed with technology provided by players like Decart. Some reports claim AI firms are investing in optimizing computing power due to scrutiny from stakeholders, including green activists and investors expecting a speedy return on investment.