TLDR: AI company Decart has secured $100 million in Series B funding, pushing its valuation to $3.1 billion. This investment, the third in 11 months, aims to accelerate the development of real-time interactive AI, particularly through its groundbreaking video generation models like Mirage and Oasis, which drastically reduce content creation costs and enable new forms of digital interaction.
Decart, a pioneering artificial intelligence company specializing in real-time video generation, has announced the successful completion of a $100 million Series B funding round, elevating its valuation to an impressive $3.1 billion. This latest investment marks Decart’s third funding round within an 11-month period, bringing the total capital raised to $153 million.
Despite the substantial capital raised, Decart has demonstrated remarkable financial efficiency, having utilized less than $10 million of investor funds. The company is notably funding its significant GPU compute costs, amounting to tens of millions of dollars, through its operational revenue. This capital efficiency is considered unprecedented in an industry where competitors often expend hundreds of millions before generating meaningful income.
Founded in late 2023 by Dr. Dean Leitersdorf (CEO) and Moshe Shalev (CPO), both veterans of Israel’s elite Unit 8200, Decart has rapidly grown from 15 to over 60 employees, with teams in Tel Aviv, northern Israel, San Francisco, and New York. The company’s core innovation lies in its proprietary GPU optimization stack, which has generated multi-million dollar licensing contracts with cloud providers and AI laboratories since its inception.
This same optimization technology powers Decart’s cutting-edge video generation models, Mirage and Oasis. These models enable a drastic reduction in the cost per hour of generated content using video diffusion models, from typical industry rates of $10s-$1000s (such as $1,400 for models like Google Veo 3 Fast) to under $0.25. This cost efficiency opens up a vast array of new possibilities for real-time consumer applications that were previously economically unfeasible.
Dr. Dean Leitersdorf envisions Decart’s Mirage model as a breakthrough in human-machine interaction. “Live video allows us to talk to computers visually in a way we’ve never experienced before. Mirage makes visual interaction with computers possible,” he stated. The company aims to disrupt how people interact with digital content, with a long-term goal of becoming a billion-user consumer application that could rival the largest tech firms globally.
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Decart’s rapid ascent has seen it ranked first in Calcalist’s list of the 50 most promising Israeli startups. The company’s success has also drawn comparisons to recent billion-dollar acquisitions by Nvidia in Israel, such as Run:AI and Deci AI, suggesting potential future interest in Decart’s unique capabilities in GPU optimization and real-time AI. Decart plans to launch an API for Mirage, which is expected to become another significant growth engine alongside its existing GPU acceleration business.
