MENLO PARK, Calif., July 31, 2025 (GLOBE NEWSWIRE) — Enterprise spending on large language models (LLM) has more than doubled in just six months, rising from $3.5 billion in late 2024, to $8.4 billion, according to a new report released today by Menlo Ventures.
The 2025 Mid-Year LLM Market Update, based on a survey of 150 technical leaders across AI startups and large enterprises, captures a rapidly maturing market where inference has overtaken training, performance dictates vendor choice, and a dramatic shift in market leadership is underway.
Anthropic Surpasses OpenAI as Enterprise Foundation Model API Leader; Google Takes Third
According to Menlo Ventures’ data, OpenAI dominated the enterprise LLM market through 2023, accounting for 50% of usage. But the latest data reveals that its share has now fallen to 25%. In that time, Anthropic has emerged as the new market leader, capturing 32% of enterprise usage across production workloads. Google has also gained significant ground, climbing to 20% on the strength of its Gemini models, Meta’s Llama holds 9%, while DeepSeek accounts for just 1% of LLM API usage.
“Some might be surprised to see Anthropic overtake OpenAI, given its first mover advantage. But our research puts real numbers behind what we’ve heard anecdotally from the market: Teams are prioritizing …