Anthropic Walks Away From Its Biggest Deal Ever logo

Anthropic Walks Away From Its Biggest Deal Ever

Anthropic terminated talks to acquire Israeli AI startup Decart for roughly $6 billion after conducting due diligence, walking away from what would have been its largest acquisition to date.

By the Numbers

~$6B
Reported deal value
~54%
Premium over last round
$3.9B
Decart valuation, May 2026
>$450M
Decart total funding
Oct. 2024
Decart founded
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THE RUNDOWN

1

Would have been Anthropic's largest acquisition on record, aimed at cutting the cost of training and serving its models with Decart's chip-efficiency technology

2

A collapse *after* deep due diligence -- not before -- raises the question of what Anthropic found that a term sheet didn't already price in

3

Decart remains independent at its $3.9 billion May 2026 valuation rather than folding into Anthropic, which just closed its own $65 billion Series H.

4

A well-capitalized buyer walking away is a signal worth more than another closed round: it says something about Anthropic's bar for infrastructure M&A right now

The VC Read

Value Add VC analysis

The diligence item I'd want answered before writing this off as noise: was it Decart's IP ownership on the chip-efficiency tech, or its revenue concentration, that spooked Anthropic post-diligence? Those are very different problems for the next bidder. Decart holding its $3.9B mark independently, with Google and Meta both circling AI infra assets this year, is the actual story here -- not the deal that didn't happen.

Analysis

Bloomberg reported that Anthropic has ended talks to acquire Decart, an Israeli AI startup, for roughly $6 billion -- a deal that would have been Anthropic's largest acquisition to date. People familiar with the matter said the two sides had progressed deep into due diligence before Anthropic pulled out; the exact reason has not been disclosed, though Anthropic and Decart may still pursue a smaller commercial partnership instead of a full acquisition. Pulse has tracked Anthropic's spending and dealmaking closely all year -- this would have been its largest bet yet.

Founded by Israeli engineers Dean Leitersdorf, Orian Leitersdorf and Moshe Shalev, Decart's core product is Oasis, a real-time "world model" that generates interactive video -- effectively a playable game environment rendered frame-by-frame by a neural network at 20 frames per second with no perceptible latency. The company has separately built chip-efficiency technology that reduces the cost of running large AI workloads, which was reportedly the specific asset Anthropic wanted. Decart's funding history:

  • Seed, Oct. 2024 -- $21M, led by Sequoia Capital, with Zeev Ventures
  • Series A, 2025 -- $100M at a $3.1B valuation, adding Benchmark and Aleph VC
  • Series B, May 2026 -- $300M led by Radical Ventures, with Adobe Ventures, Toyota Ventures and Valor Equity Partners, lifting the valuation to roughly $3.9B and total funding above $450M

โ€œThe company has separately built chip-efficiency technology that reduces the cost of running large AI workloads, which was reportedly the specific asset Anthropic wanted.โ€

Why Anthropic wanted this

Anthropic's economics are dominated by inference and training compute costs, and any technology that meaningfully improves utilization on existing GPU and TPU fleets is worth a premium -- which is presumably why Anthropic was willing to pay roughly 54% over Decart's last private mark. Decart isn't alone in that category: Cerebras and Groq compete on custom silicon for inference speed, while on the video-generation side that Decart's Oasis model also touches, Runway, Luma AI and Google's own Genie project are building comparable real-time world-model technology. Anthropic buying Decart would have combined a compute-efficiency asset with a video/world-model team in one deal -- unusual scope for an AI lab whose M&A history has otherwise skewed toward smaller, narrower acqui-hires.

The counterweight

It's tempting to read a diligence-stage collapse as a red flag on Decart specifically, but deals fall apart after diligence for mundane reasons too -- price renegotiation, key-employee retention terms, or overlapping technology Anthropic decided it could build in-house faster than it could integrate.

Anthropic itself just closed a $65 billion Series H and is preparing an IPO now expected in mid-October, so capital discipline on a cash-and-stock acquisition, even for a lab this well-funded, is not automatically a signal that something is broken at Decart.

What to watch

Decart's board now has to decide whether to run a fresh process with other potential acquirers -- Google, Meta and Nvidia have all been active buyers of AI infrastructure and video-generation talent this year -- or raise a Series C independently at a valuation that has to clear the $3.9 billion bar investors already paid in May. Either path tests whether the diligence findings that scared off Anthropic show up again with the next bidder.

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Key Sources

2 sources

Reported by Bloomberg ยท Analysis by Value Add Pulse.

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