<div id="readability-page-1">In March, e-commerce and cloud computing specialist Amazon (AMZN 2.48%) completed its $4 billion investment in AI start-up Anthropic. Since the completion of that deal, Amazon has made notable progress in its AI road map, underscored by accelerated revenue growth and higher profit generation in its cloud platform, Amazon Web Services (AWS). I initially viewed Amazon's relationship with Anthropic as a move meant to rival Microsoft's $10 billion deal with OpenAI, but some recent moves out of both &#34;Magnificent Seven&#34; members have me thinking there's another lucrative opportunity hiding in plain sight. Earlier this year, Microsoft announced that it was partnering with Palantir Technologies (PLTR 1.42%) in a campaign geared toward integrating Palantir's AI software services with Microsoft's Azure cloud infrastructure, specifically in classified environments across U.S. defense agencies. Well, it looks like Amazon is now joining the party. Below, I'll explore how Amazon and Palantir are bringing their AI protocols together to help the U.S. military and its allies. <h2>How are Palantir and Amazon working together?</h2> You may think that AI in the defense sector is nothing more than a niche opportunity. But if you think about it more, government agencies largely have the same needs as businesses in the private sector. For example, keeping track of budgets, understanding operational applications such as logistics and product development, as well as using data to make more informed and efficient decisions are all necessary in the military. According to Mordor Intelligence, various uses for AI in the defense sector -- like data analytics and robotics -- will be a $60 billion opportunity by 2029. Earlier this month, Palantir announced a partnership with AWS in which Anthropic's Claude large language model (LLM) will integrate with the Palantir Artificial Intelligence Platform (AIP) across a host of U.S. military and related defense agencies. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy83OTc0MzkvZ2V0dHlpbWFnZXMtMTQwODI1NTAyNC0xLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy83OTc0MzkvZ2V0dHlpbWFnZXMtMTQwODI1NTAyNC0xLmpwZyZ3PTcwMA"/>Image Source: Getty Images </div> <h2>How do Palantir and Amazon benefit one another?</h2> I see the relationship between Palantir and Amazon as mutually beneficial. For Palantir, I think the obvious point is that working with Amazon further establishes the company as an emerging partner with big tech. But on a more macro level, rising investment in AI should act as a bellwether for cloud computing infrastructure. In turn, hyperscalers such as Amazon and Microsoft are going to increasingly rely on partners to scale up as AI applications become more complex. This is where Palantir comes into play. As a trusted source in the public sector, it offers a unique expertise in AI, security, and data analysis that most government contractors simply cannot match. For this reason, I think Amazon will represent a source of lead generation for Palantir and help the company accelerate its public sector business. For Amazon, I think working with Palantir opens up a new opportunity -- namely, strengthening its position in the federal government. Palantir already works closely with a number of government contractors on its public sector deals. I see this relationship as an opportunity for Amazon to cross-sell its services to other military agencies and defense companies that are also investing heavily in AI. As a result, I think working with Palantir offers a chance for Amazon to continue accelerating growth across AWS while it further intensifies the competitive landscape in mega-cap tech. <h2>Is the deal a game changer?</h2> Palantir's chief technology officer Shyam Sankar said that the deal with Anthropic and AWS &#34;provides U.S. defense and intelligence communities the tool chain they need to harness and deploy AI models securely, bringing the next generation of decision advantage to their most critical missions.&#34; Sankar's words are important to understand. As he explains, the military requires much of the same tools as the private sector. However, offering these services in a safe, ethical, and secure way -- all while harnessing sophisticated AI applications -- is a feat that only a few companies can achieve. I think Palantir has essentially become the de facto partner for big tech and its aspirations to bring AI to the military. I think this deal with AWS will come with long-term tailwinds for Amazon and Palantir, and in my eyes, the deal is indeed a game changer. </div>

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Amazon's recent partnership with Palantir Technologies aims to integrate AI capabilities into U.S. military operations, leveraging Anthropic's Claude LLM within Palantir's AI Platform. This collaboration is seen as mutually beneficial, enhancing Amazon's position in the federal sector while establishing Palantir as a key player in AI and defense. The deal is expected to accelerate growth for both companies, with Palantir becoming a crucial partner for tech giants in military AI applications. Overall, this partnership is viewed as a significant development in the tech and defense sectors.

- In March, Amazon completed a billion-dollar investment in AI start-up Anthropic, enhancing its AI capabilities and boosting revenue in Amazon Web Services (AWS).  
- Amazon is now partnering with Palantir Technologies to integrate AI solutions for U.S. military applications, leveraging Palantir's expertise in data analysis and security.  
- This collaboration is expected to strengthen Amazon's position in the federal sector and accelerate growth in AWS, while providing Palantir with significant opportunities in the public sector.

Is Palantir's Deal With Amazon a Game Changer?