From @MenloVentures 3rd annual Enterprise GenAI Report out today: companies spent $37B on AI in 2025, up 3x YoY, with over 50 AI products now exceeding $100M in ARR. A few more insights: - 50% of enterprise AI spend is now on the application layer, up 4x from 2024 - Anthropic now commands ~40% of enterprise LLM spend, up from 25% last year and driven by Claude Code - Open-source enterprise LLM share fell to 11% (from 19%), with Llama dominating (70% share) despite Chinese model adoption among startups - Startups Captured 63% of the application layer (vs 36% last year), led by coding, sales, and finance products shipping faster than legacy vendors - PLG drove 27% of AI spend, 4x traditional software rates. GTM maturity is likely still catching up - Buy over build flip: 76% of enterprises now purchase AI solutions vs. 24% building in-house