Enterprise LLM Spend Reaches $8.4B as Anthropic Overtakes OpenAI, According to New Menlo Ventures Report on LLM Market
Change in Enterprise LLM API Market Share By the end of 2023, OpenAI commanded 50% of the enterprise LLM market, but its early lead has eroded. Today, it captures just 25% of enterprise usage—half of what it held two years ago.Anthropic is the new top player in enterprise AI markets with 32%, ahead of OpenAI and Google (20%), which has shown strong growth in recent months. Meta’s Llama holds 9%, while DeepSeek, despite its high-profile launch at the beginning of the year, accounts for just 1%. Coding Market Share Claude quickly became the developer’s top choice for code generation, capturing 42% market share, more than double OpenAI’s (21%). In just one year, Claude helped transform a single-product space (GitHub Copilot) into a $1.9 billion ecosystem. The release of Claude Sonnet 3.5 in June 2024 demonstrated how breakthroughs at the model layer can move application markets, making possible entirely new categories like AI IDEs (Cursor, Windsurf), app builders (Lovable, Bolt,...