Amazon is negotiating a potential acquisition of Decart, a startup developing advanced video-generation and simulation technology, in a deal that could be valued at approximately $7 billion, according to a report published Sunday by The Wall Street Journal.

The proposed acquisition would represent a significant increase over Decart’s most recent reported valuation of nearly $4 billion in May. The discussions could lead to a deal soon, although negotiations could still collapse or another potential buyer could emerge, the Journal reported, citing people familiar with the matter.

Decart has developed technology designed to generate and manipulate video in real time. Its Lucy model, which is backed by Nvidia, can edit live video, according to the company’s website. The startup has also developed Oasis, a model that generates simulated environments for training and testing robotics and autonomous-driving systems.

The technology could be relevant to Amazon’s broader efforts to expand its capabilities in advanced computing and develop new applications for generative models. However, neither company has confirmed an agreement, and the reported acquisition remains under discussion.

Decart raised $300 million in a funding round in May led by Radical Ventures, with Nvidia joining as a new investor. The funding helped establish the startup as a major player in a competitive market for advanced video-generation and simulation technology.

Amazon is not the only major technology company to have explored a potential deal. Anthropic reportedly considered acquiring Decart in August in a transaction that could have been valued at approximately $6 billion. Bloomberg News reported last month that Anthropic ultimately decided not to pursue the acquisition after conducting due diligence.

Reuters said it could not independently verify the report of Amazon’s negotiations. Amazon and Decart did not immediately respond to requests for comment.

If completed at the reported valuation, the acquisition would give Amazon control of a startup whose technology spans real-time video editing and simulated environments for robotics and autonomous vehicles. For now, however, the $7 billion figure remains a reported potential deal value rather than a finalized purchase price.