Menlo Ventures: $37B Enterprise AI Market Is a Boom, Not a Bubble

• Menlo Ventures data shows the enterprise AI market is booming, not bubbling, with spending surging to $37 billion in 2025, making it the fastest-scaling software category.
• The growth is driven by broad adoption, real revenue, and productivity gains, with demand outpacing the hype cycle.
• Enterprises now purchase 76% of AI solutions, favoring ready-made tools for immediate productivity gains over building in-house.
• Anthropic has overtaken OpenAI, securing an estimated 40% of enterprise LLM spend, largely due to its lead in coding use cases.
• Bottom-up adoption and product-led growth are accelerating AI's spread within enterprises, further indicating a robust market.

Why It Matters: Enterprise AI is booming, not a bubble, driven by real demand and productivity.