TradingKey - As of last Friday (October 9) Eastern Time, Amazon (AMZN) closed at $262.43, up 3.29%, reaching an intraday high of $262.80, setting a recent high. Reports subsequently emerged that the company is in talks to acquire AI startup Decart for approximately $7 billion. Against the backdrop of the stock price having just broken through the technical level of $260, this potential deal has further heightened market focus on the expansion of AWS's AI infrastructure and proprietary chip ecosystem, which may continue to support the stock's upward momentum.
According to reports from The Wall Street Journal and Reuters, Amazon is in talks to acquire AI startup Decart in a deal valued at approximately $7 billion. Negotiations are currently ongoing, and no final agreement has been signed. Founded in 2023, Decart was valued at around $4 billion in private markets as of May this year and has raised over $400 million in cumulative funding.
Decart's business is mainly focused on two types of technology. One is developing software that enables AI models to run more efficiently across different types of AI chips, reducing reliance on a single GPU architecture. The other is developing "world models" such as Lucy and Oasis for generating and simulating 3D environments. Decart had previously gained early access to the AWS Trainium3 chip, and its CEO used Trainium3 to demonstrate the Lucy model, indicating an existing foundation of technical cooperation between the two parties.
If the deal is ultimately completed, Decart's cross-chip software capabilities could complement Amazon's in-house Trainium AI chips. AWS is currently expanding the use of Trainium in the AI training and inference markets, and software that helps models migrate between different chips can lower software adaptation costs for customers transitioning from Nvidia (NVDA) GPUs to AWS's in-house chips. For Amazon, this means its AI investment scope will extend further from data centers and chips to model runtime software and world models.
However, the potential deal price of around $7 billion remains a media report, and neither party has announced a final agreement. Decart was valued at approximately $4 billion earlier this year, so if the transaction is completed at the reported price, the valuation paid by Amazon would be significantly higher than its most recent funding round valuation. Going forward, key factors to monitor include the final transaction price, regulatory approvals, and whether Decart's technology can further boost the adoption rate of Trainium and AWS AI services.

Amazon stock price daily chart, Source: TradingView
Looking at Amazon's daily stock chart, the stock surged 3.29% last Friday, with the closing price standing firmly above $260, breaking key short-term resistance. Market bullish momentum was further enhanced, significantly increasing the likelihood of the stock continuing its rise in the short term. Meanwhile, in the moving average system, the 10-day moving average crossed above the 20-day moving average to form a golden cross, further strengthening bullish momentum.
Currently, the primary upside target for the stock will be to test the August 28 rebound high of $267.56. If this level is decisively broken, it will open up upside room toward the previous all-time high of $287.20, and even challenge the $300 mark.
On the downside, the primary support level to watch is $260. If this level fails to hold, the next support focus is $252–$254, corresponding to the 20-day moving average and a recent dense trading zone, with further support near $250.