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Data released by Menlo Ventures on Wednesday showed that enterprise spending on generative artificial intelligence has surged 500% this year, from $2.3 billion in 2023 to $13.8 billion.
The report also found that OpenAI lost enterprise artificial intelligence market share, falling from 50% to 34%. Anthropic’s market share doubled from 12% to 24%. The report shows that this result comes from a survey of 600 enterprise IT decision-makers in companies with 50 or more employees.
Menlo is an investor in Anthropic. OpenAI did not immediately respond to a request for comment.
Tim Tully, a partner at Menlo Ventures, said in an interview with CNBC that the power shift is partly due to the advancement of Claude 3.5, with most companies using three or more large artificial intelligence models. He said that although OpenAI and Anthropic dominate the company’s use of artificial intelligence models, people are “playing with the models” and this habit is “not a well-understood data.”
“The developers are very savvy – they know how to switch back and forth between models quickly,” Tully explains. “They are choosing the model that best suits their use case…and that will most likely be Claude 3.5.”
YuanThe market share of Cohere remained at 16%, and Cohere’s market share remained at 3%. Google rose from 7% to 12%, and Mistral dropped 1 percentage point to 5% in 2024.
The report found that basic models such as OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude still dominate corporate spending, with large language models receiving $6.5 billion in corporate investment.
Menlo’s report is bullish on artificial intelligence agents, a leading trend in artificial intelligence and an investment area in 2024. Google, Microsoft, AmazonOpenAI and Anthropic are pursuing the technology. Artificial intelligence agents are seen as a step beyond chatbots. They can perform complex multi-step tasks on behalf of the user and generate their own to-do lists so that the user does not have to step-by-step guide them through the entire process.
“The agency thing is real — it’s not hype,” Talley told CNBC. “I don’t think it will necessarily cure cancer, but will it make people more productive and help companies generate revenue? Yes.”
The report found that code generation is the primary use case for generative AI, with more than half of survey responses naming it as a primary use. Next is supporting chatbots, accounting for 31%, followed by enterprise search and retrieval, data extraction and conversion, and meeting summary.
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