Anthropic Expands AWS Business with New Dedicated Team

Anthropic and Amazon Strengthen AI Collaboration

Indicating a deepening alliance, Anthropic has established a dedicated team focused on onboarding existing Amazon Web Services (AWS) customers to utilize its artificial intelligence products.

New Team Focuses on AWS Integration

This team, recruitment for which began several months prior, is designed to “accelerate” the integration of Anthropic’s AI solutions within AWS environments. Their objective is to “build programs that […] scale across global markets and segments,” as detailed in Anthropic’s job postings.

A key leadership role, Head of Amazon GTM Partnership, is described as owning and expanding a crucial strategic relationship. The position entails managing a team responsible for generating multi-billion dollar revenue streams through the AWS partnership.

Amazon’s Significant Investment in Anthropic

Amazon has committed substantial capital to Anthropic, totaling $8 billion to date. While remaining a minority investor without governance rights, Amazon serves as Anthropic’s “primary” training partner. This involves providing proprietary chips to facilitate the development of Anthropic’s AI models.

Furthermore, Anthropic’s models have been specifically optimized for deployment on AWS infrastructure. Exclusive capabilities are offered through Bedrock, AWS’ dedicated AI development platform.

Expanding Ecosystem and Customer Base

Collaborations with Amazon partners, including Accenture and Palantir, have been initiated to broaden access to Anthropic’s AI technology via AWS. Anthropic CEO Dario Amodei reported in November that the Claude model family was already being utilized by “tens of thousands” of Bedrock customers.

Amazon is actively integrating Anthropic’s technology into its own products, such as the enhanced Alexa experience, Alexa+. The company views Anthropic as a vital component of its overall AI business expansion.

Revenue Growth and Future Projections

Amazon CEO Andy Jassy recently stated that Amazon’s AI revenue is experiencing “triple-digit” year-over-year growth, currently representing a “multi-billion-dollar annual revenue run rate.”

Anthropic also anticipates significant revenue growth, targeting $12 billion in revenue by 2027, a substantial increase from a projected $2.2 billion this year. AWS’ extensive reach is expected to be instrumental in achieving this expansion.

Regulatory Scrutiny of the Partnership

The collaboration between Amazon and Anthropic has drawn attention from regulatory bodies.

Last year, the FTC requested information from Amazon, Microsoft, and Google regarding the competitive implications of their investments in AI startups like Anthropic. Google has also made significant investments in Anthropic through multiple funding rounds.

Investigations by the CMA

The U.K.’s Competition and Markets Authority (CMA) also investigated the Amazon-Anthropic partnership, assessing whether it could lead to “Amazon having material influence” over Anthropic’s operations.

The FTC published a report concluding that Big Tech AI investments can potentially create market lock-in and expose sensitive data, potentially hindering competition. However, the report did not recommend immediate enforcement actions.

The CMA determined that the partnership and investment do not fall under current merger regulations due to the deal’s scale and scope.