Rohati Capital, an early-stage venture capital firm founded by former Amazon executives, Nick Talwar, and Jason MacRae has published new insights from Operating Partner Charles Elkan on the long-term competitive advantage, or “moat”, of Anthropic. Rohati made a co-investment in Anthropic in February 2025, as part of the company’s Series E round.
The analysis details how Anthropic maintains enduring structural advantages in the rapidly evolving landscape of artificial intelligence, positioning it as a leader among large language model (LLM) developers.
“Anthropic’s focus on model safety, interpretability, and scalability position them as one of the leaders in the AI revolution, and is consistent with Rohati Capital’s focus on practical, trustworthy applications of AI” said Jason MacRae, Managing Partner at Rohati Capital.
Understanding Anthropic’s Moat
Some observers believe that LLMs will be commoditized and that a company like Anthropic, has no long-term moat. Rohati Capital reaches a different conclusion: it finds that Anthropic is a leader in B2B revenue among LLM vendors and is positioned to retain that lead while sustaining strong gross margins and revenue growth. The rationale, drawing on Rohati Capital’s prior experience at Amazon, centers on three factors: convenience, speed, and trust.
Convenience
Even if alternative LLMs are equally powerful, they are still different from each other. Business applications, and especially agents, are built on calling an LLM many times for a single task. The code that calls the LLMs is tuned to work with the outputs of one particular LLM, and works less well with others, so it is highly inconvenient for a developer to switch to a different LLM vendor. This is even more true in a B2B setting, where prompting and fine tuning are bespoke based on proprietary data, business processes, and regulations that are unique to each enterprise.
Speed
The current business landscape is a landrush to build AI-driven applications that will be the next generation of enterprise software, both by companies developing in-house and by incumbent and insurgent SaaS providers. Using a top-tier vendor such as Anthropic enables faster development than using a self-hosted open-source model, even if the latter appears cheaper. It also enables faster scaling in case of success, and the certifications possessed by Anthropic and its cloud partners, notably AWS, are a speed advantage for passing security checks and gaining the permissions needed for deployment.
Trust
This is the third reason why Rohati Capital expects Anthropic to continue as a dominant LLM vendor, as the overall market continues to expand dramatically. The company has a well-deserved reputation for being the industry leader in safety along multiple dimensions, including interpretability and model helpfulness and harmlessness. It pioneered constitutional AI, which embeds normative principles directly into training to reduce harmful outputs, while its work on adversarial testing sets the standard for evaluating emergent risks.
The future impact of AI on business productivity is undeniable. But getting AI to do serious work in an enterprise setting is significantly harder than producing a chatbot for consumers. Companies everywhere are discovering that AI agents are like college interns, clever and hardworking, but dangerous if not carefully managed and supervised. By offering speed, convenience, and trust, Anthropic has positioned itself as a leader in helping enterprises reap the benefits of AI.
“The impact of AI on business productivity is undeniable. But getting AI to perform serious work inside an enterprise is far more complex than building a chatbot for consumers. Companies everywhere are discovering that AI agents are like college interns, clever and hardworking, but potentially risky without careful supervision. By delivering trust alongside speed and convenience Anthropic is helping enterprises unlock the real benefits of AI safely and at scale,” said Nick Talwar, Co-Founder of Rohati Capital.
About Rohati Capital
Rohati Capital is an early-stage venture fund of funds founded by operators who built and scaled the world’s first AI-powered embedded finance company at Amazon. The firm invests in bold entrepreneurs and the venture funds that back them, addressing the world’s biggest untapped opportunities.
With deep operating experience across technology, finance, and artificial intelligence, Rohati’s partners bring an “operator-first” perspective to venture capital, combining strategic insight with data-driven investment discipline.
For more information, visit http://www.rohati-capital.com or follow Rohati Capital on X and LinkedIn.
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