Anthropic has decided not to pursue its proposed acquisition of artificial intelligence startup Decart AI after conducting due diligence, ending talks over a deal that was reportedly valued at around $6 billion.
The Claude maker had been exploring the acquisition and had progressed to reviewing Decart's business and technology before deciding against moving ahead with the transaction, according to people familiar with the discussions. Neither Anthropic nor Decart has publicly commented on the reasons behind the decision.
The talks had not resulted in a final agreement, and reports about the potential transaction had earlier cautioned that negotiations could still fall through. While the acquisition is no longer being pursued, the two companies could explore other opportunities to work together.
Decart develops AI infrastructure technology designed to improve the efficiency of computing chips and reduce the cost of training and running artificial intelligence models. Such technology has become increasingly important as developers of large AI models face rising demand for computing capacity and the associated infrastructure costs.
Founded in 2023, the Israeli startup has also developed AI models alongside its infrastructure technology. Decart employs around 100 people and has raised approximately $450 million to date. Its investors include Nvidia, Sequoia Capital, Benchmark, Radical Ventures and Adobe Ventures.
In May, Decart raised $300 million in a funding round led by Radical Ventures, reportedly valuing the company at close to $4 billion. A potential $6 billion acquisition by Anthropic would therefore have represented a substantial premium over its most recent private valuation.
The specific findings from Anthropic's due diligence have not been disclosed. Reports examining the collapse of the negotiations have raised several possible explanations, ranging from questions around technology and scalability to the structure of the proposed transaction. However, neither company has confirmed that any of these factors caused the talks to end.
The potential acquisition would have been significant for Anthropic, which has historically made relatively few large acquisitions. The company has been increasing investment in computing infrastructure as it develops its Claude models and expands enterprise adoption of its AI products.
Decart, meanwhile, could continue operating independently or pursue other strategic opportunities. Reports indicate that the startup had attracted interest from other potential buyers before advancing discussions with Anthropic.
The decision leaves the companies without the multibillion-dollar transaction that had been under consideration, while keeping open the possibility of a different commercial relationship between the two AI companies.
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