Amazon may spend $7 billion on one AI startup, and the reason tells you where the cloud war is heading. The target is Decart, valued near $4 billion just five months ago. That's roughly 75% above its May valuation.

Here's why it matters: Decart isn't only building AI video models. Its software helps AI workloads run across Nvidia chips, Amazon's Trainium, and Google's TPUs, which could make it strategically valuable as AWS competes for AI computing business.

The catch: this is still only talks. Amazon declined to comment, and another bidder could still emerge.

Next up: whether Amazon turns this into a signed deal, and how much it pays above Decart's recent valuation.

Amazon is willing to pay up for software that makes AI run on any chip. A signed deal is the real test.

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