The company that developed the world's most expensive AI startup has an unusual management structure
"This provides incredible freedom," says Dario Amodei, head of Anthropic.
Anthropic CEO Dario Amodei has only one direct report — his chief of staff. The company's other executives report to Anthropic President Daniela Amodei, his sister and co-founder of the company, writes devby.io.
"This provides incredible freedom," Amodei said. According to him, such a structure allows him to focus on strategy, external negotiations, and other tasks without spending time managing a large team of executives.
Anthropic's approach is unusual for a large tech company. On average, a CEO has about ten direct reports, whereas Amodei has only one. At the same time, Anthropic employs more than 2,000 people.
In contrast, Nvidia CEO Jensen Huang directly manages approximately 60 top managers. He believes that a broad structure helps him gather information from different parts of the company and discuss issues with large groups of executives at once.
Management experts note that there is no universal number of direct reports. A small number of direct reports allows the CEO to focus on strategy and external relations but requires a high degree of trust in the management team. A broad structure, on the contrary, reduces bureaucracy and helps the company's head stay closer to operational processes but can overload them.
At Anthropic, Daniela Amodei is largely responsible for operational management. Dario Amodei can, therefore, devote more attention to developing the Claude neural network models, AI safety, and negotiations with U.S. authorities.
Amid the AI boom, companies are increasingly re-evaluating their management structures. Some, like Anthropic, opt for a narrower vertical management structure. Others, including Meta and Nvidia, are expanding the number of employees and executives who report directly to the head of the company.
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