Amazon is in talks to acquire artificial intelligence startup Decart in a deal that could be worth around $7 billion, according to a report by The Wall Street Journal on Sunday.

The report cited people familiar with the matter. Reuters said it could not immediately verify the information.

Decart develops artificial intelligence models for real-time video editing and simulated environments. Its Lucy model can edit live video in real time, according to the company’s website. Nvidia backs the model.

The startup has also developed Oasis, an AI model that generates simulated environments to help train and test robotics and autonomous-driving systems.

Decart Valuation Reaches Nearly $4 Billion

Decart was valued at nearly $4 billion in May, according to The Wall Street Journal, which cited PitchBook data.

The startup raised $300 million in a funding round that month. Radical Ventures led the round, while Nvidia joined as a new investor.

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A potential $7 billion acquisition would represent a significant increase over Decart’s reported May valuation. However, the discussions remain ongoing, and the deal could still fall through.

The Wall Street Journal reported that an agreement could come soon if negotiations continue successfully and no competing bidder emerges.

Anthropic Also Explored a Possible Acquisition

Decart has attracted interest from other major players in the artificial intelligence industry.

Last month, Anthropic decided not to pursue an acquisition after conducting due diligence, Bloomberg News reported. The company had explored a possible deal in August that could have valued Decart at around $6 billion, according to Bloomberg.

Amazon, Decart and Nvidia did not immediately respond to requests for comment, according to Reuters.

The reported talks highlight continued interest in AI companies developing models for video generation, robotics and autonomous systems. However, Amazon has not publicly confirmed an agreement to acquire Decart.