Amazon and Palantir Lead AI Infrastructure Growth Projections

Amazon.com and Palantir have emerged as central software infrastructure providers in the expanding artificial intelligence market. Amazon utilizes Amazon Web Services to offer generative AI development tools, including Bedrock and SageMaker, while producing its own first-party AI chips. The company maintains a strategic partnership with Anthropic, owning approximately 20% of the firm and requiring it to use AWS infrastructure and Trainium chips.

Palantir provides data aggregation and operating systems through its Gotham and Foundry platforms, while its Artificial Intelligence Platform integrates large language models with client data. The company expects increased demand from the U.S. military driven by ongoing conflicts in Ukraine and the Middle East.

Analysts project significant growth for both companies through 2028. Amazon's revenue and earnings per share are expected to grow at compound annual growth rates of 15% and 24%, respectively, from 2025 to 2028. This growth coincides with a broader industry shift from research and development into a global rollout, with Grand View Research projecting the overall AI market will expand at a 30.6% CAGR through 2033.