Amazon is in talks to acquire the Israeli AI startup Descartes for approximately $7 billion, Ynetnews reports. Neither company has confirmed the report, and no deal terms beyond the headline valuation have been disclosed.

A transaction at that price would place Descartes among the most valuable Israeli technology exits in recent years. It would also mark one of Amazon's largest acquisitions in the artificial intelligence segment, at a moment when hyperscalers are competing aggressively to lock in AI capabilities through procurement rather than in-house development alone.

Who is Descartes?

Descartes is an Israeli startup operating in artificial intelligence, according to the Ynetnews report. The company has kept a comparatively low profile, and the report did not detail its revenue, headcount, or specific product lines. The scale of the reported price — roughly $7 billion — signals that Amazon values the startup's technology or team at a level typically reserved for companies with demonstrated traction or scarce technical assets.

What would the deal mean for Amazon?

For Amazon, the reported acquisition would extend a pattern of major capital commitments in AI infrastructure and talent. The company has been building out compute capacity for its AWS cloud business, where AI workloads are a primary growth driver. Buying an established AI team outright can shorten development timelines in a market where engineering talent and specialized models are the binding constraints.

The $7 billion figure remains a report, not a confirmed term sheet. Large exploratory talks frequently collapse before any agreement is signed, and neither Amazon nor Descartes has commented publicly on the matter.

What happens next?

If negotiations advance, expect confirmation — or denial — to come from Amazon directly, likely alongside a regulatory filing given the size of the transaction. Until then, the $7 billion number stands as an unconfirmed valuation attributed solely to Ynetnews, and the competitive implications for the Israeli AI startup scene will hinge on whether the deal closes at all.