Enterprise AI Spending Explodes to $37 Billion as Anthropic Overtakes OpenAI in Market Share Battle

Dec 09, 2025
Menlo Ventures
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Summary

Enterprise AI spending explodes to $37 billion in 2025—a staggering 220% increase—as Anthropic crushes OpenAI by capturing 40% market share compared to OpenAI's declining 27%, with AI startups dominating the $19 billion application market and coding emerging as the first $4 billion killer use case.

Key Points

  • Enterprise AI spending surges to $37 billion in 2025, up from $11.5 billion in 2024, representing a 3.2x year-over-year increase and capturing 6% of the global SaaS market
  • Anthropic extends its lead in enterprise LLM market share to 40%, up from 24% last year, while OpenAI's enterprise share falls to 27% from 50% in 2023, with coding applications driving Anthropic's dominance
  • AI startups capture 63% of the application layer market worth $19 billion, earning nearly $2 for every $1 earned by incumbents, with coding emerging as the first killer use case at $4 billion in spending

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