Israeli AI startup Decart is in advanced acquisition negotiations at a valuation between $6 billion and $7 billion, according to reporting from Calcalist on Saturday.
The company, which develops artificial intelligence technology, has attracted interest from multiple large acquirers. Decart's negotiations mark one of the largest mooted deals for an Israeli AI company in the current funding environment, where venture capital for AI startups has tightened despite ongoing large acquisitions by technology giants.
Decart was founded to build generative AI models and related infrastructure. The startup has operated in a market crowded with AI vendors seeking to differentiate through specialized applications or superior model performance. Large acquirers including cloud and aerospace firms have accelerated acquisition activity for AI talent and technology amid competition for capability in machine learning and language models.
The $6 billion to $7 billion range represents a significant valuation for a company in Israel's tech sector. Israeli startups have faced headwinds since 2022, when venture funding declined sharply and exit valuations compressed. A deal at the upper end of Decart's reported range would be the largest Israeli tech acquisition announced since 2021.
Advanced acquisition talks do not guarantee a completed transaction. Negotiations at this stage often involve multiple bidders and can extend for months or conclude without agreement. The parties have not announced formal terms or a signing date.
Decart's reported valuation sits in a narrow band between two outcomes: if the sale closes at $6 billion, it would price the company at a multiple roughly 10 times lower than the highest-valued AI startups in the United States, though Israeli venture-backed companies typically trade at lower multiples than U.S. peers at equivalent growth stages. Large acquirers continue to pay substantial sums for AI infrastructure and model development capacity even as public market valuations for AI vendors have stabilized or declined.
The number to watch is whether Decart announces a signed acquisition agreement within the next 60 days, which would confirm the deal's completion and settle the final purchase price.
