In what could be a huge shift for the cloud computing industry, Google makes cloud deal with Anthropic. Together, this partnership is worth tens of billions of dollars. This technical agreement underscores the continuing, intense rivalry between tech monopolists. They’re all competing to fulfill the unprecedented demand for cloud infrastructure, particularly in the area of artificial intelligence (AI) workloads. The partnership comes at a time when Amazon Web Services (AWS) is making strategic moves to bolster its offerings.
At the beginning of this year, AWS worked with Perplexity to announce the company’s enterprise product. This partnership, formed back in July, is intended to both improve AWS’s product offering and meet the growing demands from corporate customers. These companies are pioneering and scaling up exciting new models. With their deep focus on AI and core infrastructure, they are attracting rapid investment and innovation to the booming industry.
Amazon must be happy with its proprietary business segment’s record shattering increase in operating income for Q3 2023. It jumped to $11.4 billion, compared to $10.4 billion in the same time period in 2022. The wave is indicative of a tsunami level of demand for cloud services. Companies are relying on cloud infrastructure like never before as the backbone for their business operations.
Amazon has done very well financially during the pandemic. Just two days before posting this happy news, the company dropped a bomb by announcing plans to eliminate up to 14,000 corporate positions. The company has since announced plans to shift its attention back toward developing its AI strategy.
Elon Jassy, CEO of Amazon, recently underscored the urgency driving these strategic changes.
“AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY.” – Andy Jassy
Over the past 12 months, Amazon has added more than 3.8 gigawatts of capacity, reflecting its proactive approach to scaling operations and meeting customer needs.
“You’re going to see us continue to be very aggressive in investing capacity because we see the demand.” – Andy Jassy
The world of cloud computing is very rapidly evolving. It’s clear that companies like Google, Anthropic, and AWS are cutthroat competing for market share and pushing innovation in their respective AI technologies. TechCrunch’s Disrupt in San Francisco from Oct. 13-15, 2026. Join industry leaders and innovators from around the world to discuss key trends and shape the future of mobility.
Becca Szkutak is a staff writer at TechCrunch. She tracks national venture capital trends and emerging, local startups more than most. Tips, questions or just want to chat? She can be contacted securely via Wickr @rszkutak and by email at rebecca.szkutak@techcrunch.com
Becca Szkutak, a senior writer at TechCrunch who covers venture capital trends and startups, continues to track these developments closely. For inquiries or more information, she can be reached at rebecca.szkutak@techcrunch.com.