Israeli AI company Decart, one of the few Israeli AI players that develop their own language models, has entered into negotiations on a sale of the company following offers estimated at about $5 billion. Just three months ago, Decart raised capital from Nvidia at a valuation of $4 billion, "Globes" has learned. It is believed that one of the acquisition offers that Decart is examining is from Nvidia itself.
There is no certainty that any deal will materialize, but the company could attract additional suitors in the wake of reports of this or that offer. Market sources familiar with Decart cast doubt on the existence of intentions to buy the company because of its low sales and the fact that it has changed its product focus. They say that it is more likely to interest potential buyers because of the high concentration of engineers and AI experts that it has brought together than because of its products.
A company like Nvidia could find in Decart intellectual property and technology that accelerates the performance of language models, an advantage reminiscent of previous acquisitions by Nvidia in Israel, of Run:ai and Deci AI, both acquired two years ago.
Decart was founded in 2023 by Dr. Dean Leitersdorf (CEO) and Moshe Shalev (CPO) with the aim of cutting the cost of processing language model usage. It became an artificial intelligence lab generating revenue from an optimization service enabling more training and operational processes to run on the same graphics processor, or in other words cutting expenditure on Nvidia processors, and from development of models that interface with customers’ existing models (API) provided via their clouds to end users.
If Decart is ultimately sold at a $5 billion valuation, that will represent a very quick exit for the investors who only three months ago bought shares at a valuation of $4 billion. The most prominent investors in that round were US venture capital firm Radical Ventures; Gavin Baker’s Atreides Management, one of the first investors in SpaceX and a serial investor in Avigdor Willenz’s semiconductor companies; the venture capital arms of Toyota, Adobe, and eBay; and Valor Equity Partners.
Among earlier investors, who obviously stand to gain more, are Oren Zeev’s Zeev Ventures, the Sequoia and Benchmark venture capital firms, and private investors Andrej Karpathy, one of the founders of OpenAI, former Disney CEO Michael Eisner, the Yamauchi family, which used to control Nintendo, and gaming investor Moritz Baier-Lentz. Altogether, Decart has raised $450 million since it was founded.
If a deal goes ahead, it will come a short time after Decart signed a strategic partnership agreement with Amazon and an agreement with Nvidia as an investor and business partner. Under the partnership agreement with Amazon, the latter’s cloud customers can use Decart’s technology for AI applications in media, trading, advertising, and robotics.
No responses to the report were forthcoming from Decart or Nvidia.
Published by Globes, Israel business news - en.globes.co.il - on August 10, 2026.
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