Business spending on generative AI surged 500% this year, hitting $13.8 billion — up from just $2.3 billion in 2023, according to data from Menlo Ventures released Wednesday.Sopa Images | Lightrocket | Getty Images
The report also found that OpenAI ceded market share in enterprise AI, declining from 50% to 34%. Anthropic doubled its market share from 12% to 24%. The results came from a survey of 600 enterprise IT decision-makers from companies with 50 or more employees, per the report.Tim Tully, a partner at Menlo Ventures, told CNBC in an interview that the power shift is thanks in part to the advancement of Claude 3.5 and because the majority of companies are using three or more large AI models.
Foundation models — such as OpenAI's ChatGPT, Google's Gemini, Anthropic's Claude and others — still dominated enterprise spend, the report found, with large language models receiving $6.5 billion in enterprise investment.are pursuing the technology. AI agents are viewed as a step beyond chatbots. They can perform multistep, complex tasks on a user's behalf, and generate their own to-do lists, so that users don't have to walk them through the process step-by-step.