Decart Raises $32M to Develop AI Technology and Open World Apps

Decart Secures $32 Million Series A Funding

A recently launched startup, Decart, is once again garnering attention following a substantial funding round. Emerging from stealth mode less than two months ago, the company has quickly attracted significant investment.

Building a Vertically Integrated AI Lab

Decart, spearheaded by CEO and co-founder Dean Leitersdorf, is developing a fully vertically integrated AI research lab. This lab will serve as the foundation for both enterprise-level and consumer-facing products.

Early Success and Revenue Generation

The company’s initial enterprise offering focuses on optimizing GPU utilization, and is already generating millions of dollars in revenue. Simultaneously, their first consumer product, an interactive AI model named Oasis, was released alongside the company’s public debut and has reportedly attracted “millions” of users.

Series A Funding Details

Building on a strong initial launch, Decart, with bases in San Francisco and Israel, has successfully closed a $32 million Series A funding round. This round was led by Benchmark.

Continued Investment from Existing Backers

This latest funding follows a seed round of $21 million secured just two months prior from Sequoia and Zeev Ventures. Both firms also participated in the Series A round, demonstrating continued confidence in Decart’s potential.

Valuation Growth

Sources indicate that Decart’s post-money valuation now exceeds $500 million. This represents significant growth compared to the seed round valuation of just over $100 million.

Ambitious Goals: Becoming a "Kilocorn"

The 26-year-old Leitersdorf expresses a bold vision for Decart, aiming not merely to compete with established AI giants like OpenAI, Anthropic, and Mistral, but to become a “kilocorn” – a company valued at $1 trillion.

Early Acquisition Interest

Leitersdorf acknowledges that the company has already received acquisition offers. He points to the acquisition of Run:ai by Nvidia for $700 million as a relevant comparison, given Decart’s advancements in optimization technology.

Founder's Background: Dean Leitersdorf

Leitersdorf’s rapid ascent is rooted in a decade of consistent achievement. Born in Israel, he relocated with his family to Switzerland and then Palo Alto, California, following his parents’ medical and research careers.

Accelerated Education

He completed his high school diploma in just two years at Palo Alto High School before returning to Israel to attend the Technion. There, he earned his bachelor's, master's, and doctoral degrees in computer science within five years, concurrently fulfilling his military service obligations.

Co-founder Moshe Shalev's Expertise

Co-founder Moshe Shalev brings a unique skillset to Decart, having developed his computer science expertise during his service in the IDF’s 8200 intelligence unit. He spent nearly 14 years establishing and leading AI operations within the unit.

A Third Undisclosed Co-founder

A third co-founder, possessing an equally impressive background, is currently not being publicly named due to ongoing commitments.

Prioritizing Systems Over Models: The Decart Approach

Currently, Decart is concentrating its efforts across three core domains: systems – specifically, infrastructure optimization – models, encompassing AI algorithms, and data, relating to applications designed for data ingestion and retrieval.

The company’s initial offering, released during a period of stealth earlier this year, falls within the systems category. This software is engineered to enhance the efficiency of GPU processes during both the training and inference phases of AI model workloads.

The performance of this software has proven to be remarkably effective. Several organizations are now utilizing it to mitigate operational expenses associated with the development and deployment of artificial intelligence models. According to Leitersdorf, employing Decart’s software can reduce costs from a typical $100 per hour to as little as 25 cents per hour.

“This outcome certainly captured the attention of potential users,” he remarked.

The field of AI is experiencing significant growth, but technologies that improve AI functionality appear to be gaining even greater traction.

While Decart refrains from disclosing its clientele, it reports revenue already reaching millions of dollars. The company achieved profitability upon its official launch in early November, with a projected continuation of profitability through year-end, a factor likely contributing to investor interest.

“Decart’s innovative approach not only streamlines AI generation but also broadens its accessibility to a wider range of users,” stated Victor Lazarte, a general partner at Benchmark, who spearheaded the investment. “By lowering entry barriers and substantially reducing costs, they are fostering a new era of creativity and practical applications. We are pleased to support their journey as they redefine the potential of AI and its integration into daily life.”

Although this optimization product currently serves as the primary revenue driver for the startup, it is not Decart’s ultimate objective. Leitersdorf explained that the product was developed to provide financial support during the stealth phase, building upon research conducted during his academic studies.

Decart’s second product aligns more closely with its long-term vision.

Oasis, conceived as a “playable” AI reminiscent of Minecraft, generates dynamic, interactive audio and visual experiences in real-time. The company intends to introduce further experiences of this nature, including an enhanced Oasis game and others powered by generative AI. These could encompass AR or VR applications that do not necessitate specialized hardware.

“Previously, the challenge with VR and AR lay in prioritizing hardware development,” he explained. “However, hardware creation is complex, and gaining user adoption for new hardware is difficult. The advantage of GenAI is that we can develop AR solutions within the software realm, delivering value even before the hardware is fully prepared.”

One might suggest that Decart has, perhaps counterintuitively, prioritized immediate gains over long-term considerations regarding its ambitions. Leitersdorf offered limited insight into the company’s stance on customers seeking to utilize its optimization software for potentially harmful model development.

Furthermore, the company currently lacks a formal plan to prevent misuse or abuse of the applications it creates. He indicated that such scenarios have not yet arisen.

The current emphasis is on expanding user engagement with its platform and converting that engagement into revenue.

“Ultimately, the users are the key stakeholders,” Leitersdorf asserted. “Their opinions are the only ones that truly matter.”

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