An Israeli artificial intelligence startup, Decart, is reportedly nearing a sale that could value the company at nearly $6 billion, a development that would add another layer to Elon Musk’s widening push into AI, data infrastructure, and cloud services. The potential deal comes as Musk and his companies step up their efforts to compete in the fast-moving market for large language models and the compute required to run them at scale.
For years, Musk has shown sustained interest in Israel’s technology sector, according to reporting tied to the Decart story. That interest is increasingly visible in the sequence of transactions and corporate moves that have put SpaceX at the center of a broader AI buildout—one that blends model development with the infrastructure needed to commercialize it. The reported Decart acquisition would fit that pattern: bringing in additional capabilities and talent while reinforcing SpaceX’s strategy to monetize AI through a mix of product and infrastructure offerings.
Only a little over a month before the Decart reports, SpaceX raised $75 billion in its IPO, with a stated aim that included expanding AI infrastructure and advancing Grok, Musk’s large language model. Grok is currently presented as competing against multiple major AI players, including Anthropic, Google, and OpenAI. The strategic logic is that AI progress is inseparable from compute—whether for training, inference, or for supporting applications that generate revenue—so the capital raised is intended to accelerate both model iteration and the hardware and cloud capacity that power it.
Immediately after its own IPO, SpaceX also acquired the AI startup Cursor for $60 billion, another sign that the company is willing to spend heavily to consolidate capabilities. If Decart’s technology is added after that acquisition, the combined effect could be to strengthen SpaceX’s AI stack across different functions, from tooling and developer workflows to operational performance. While the reports do not outline the precise integration plan, they frame Decart as a potential “layer” in SpaceX’s broader AI strategy.
The momentum behind the deal is also tied to Musk’s restructuring of his AI efforts. Earlier in 2026, Musk merged xAI into SpaceX at a valuation of $250 billion for the AI business. Since then, he has sought to deepen SpaceX’s role in computing and cloud infrastructure—areas that are increasingly critical for the economics of AI. By bringing an AI company inside a large industrial and launch-related enterprise, Musk effectively positioned SpaceX to treat AI not as a side project, but as a core expansion path.
That expansion has financial implications beyond headlines. In commentary on SpaceX’s early public-company outlook, CNBC reported that SpaceX contracted $6.7 billion of cloud services revenue in the first few weeks of the current quarter, with that revenue scheduled to ramp over a six-month period beginning in October. Taken together, the figures suggest SpaceX could be on pace to reach $100 billion in annualized recurring revenue by the end of the year, though the projection assumed that the company’s $60 billion Cursor acquisition closes. The $100 billion target mirrors the optimism Musk expressed when SpaceX published its first financial statements after going public.
In those first post-IPO financial statements, Musk said that reaching a “revenue rate of $100 billion in December is not a question mark,” adding that the company would likely reach even higher levels if it “basically do[es] nothing.” The statement underscores a belief that SpaceX’s momentum in AI-driven services could be self-reinforcing: spending on compute and services would translate into recurring revenue, even before major expansions are completed.
But the AI spending also comes with skepticism from investors and analysts. CNBC noted that despite promises of a quick payoff, SpaceX’s AI spending has unnerved Wall Street—particularly because the strategy of reselling AI capacity for near-term revenue can appear disconnected from the company’s larger ambitions. In the IPO prospectus, SpaceX described a “dual monetization strategy” that is meant to create multiple pathways to generate returns on invested capital, suggesting management expects the business model to evolve and diversify as deployments mature.
The early market reaction also reflects the tension between high growth expectations and heavy upfront costs. CNBC reported that while SpaceX’s second-quarter revenue exceeded estimates—rising 92% from the prior year—capital expenditures soared more than sixfold to $18.4 billion, exceeding double total sales for the quarter. In this context, an additional acquisition such as Decart could further intensify investor focus on how quickly the company converts AI spending into measurable operating results.
Alongside financial performance, corporate integration is another variable in the story. The Information has reported that Cursor, acquired by SpaceX, was approaching integration planning that included branding changes as the acquisition neared. While details about Decart’s integration are not included in the available excerpts, the Cursor reporting points to the practical reality that acquisitions in the AI sector often require rapid operational alignment—product positioning, organizational structures, and internal systems—before strategic value can be fully realized.
For now, the Decart deal remains in the “nearing” phase, with the reported valuation close to $6 billion and linked to Musk’s expanding AI posture through SpaceX. The potential purchase would deepen SpaceX’s role in AI development and commercialization while reinforcing its push to secure the compute and cloud capabilities that are increasingly seen as the foundation of competitive advantage.
If the acquisition proceeds, Decart would join a portfolio of AI-related moves that began to accelerate with SpaceX’s IPO and acquisitions tied to AI infrastructure and models, including Cursor and Grok. At the same time, SpaceX will need to address the market’s concerns about spending intensity and the timing of returns. In a sector where AI progress depends on both algorithms and infrastructure, the next test will be whether SpaceX can turn its ambitious compute buildout and acquisitions into sustained recurring revenue—at a pace fast enough to satisfy investors.
Whether Decart becomes the next major acquisition depends on negotiations and final terms, but the backdrop is clear: Musk is building toward a future in which AI capabilities, cloud services, and large-scale compute capacity operate as a single economic engine. As SpaceX works to execute on its post-IPO promises, the reported Decart sale could signal that the company is ready to keep expanding the AI stack—even as Wall Street weighs the costs of getting there.
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