Menlo Ventures 2026 report: every $1 into model development yields $1.70 of revenue
deedydas · x · 2026-11-04
deedydas shares the source of Menlo Ventures' "2026: The State of Enterprise AI" report (by Tim Tully, Joff Redfern, Deedy Das, Derek Xiao):
- Enterprise AI deployment spend surged from $33B to $177B, with growth accelerating (5.4x vs 3.9x the prior year)
- Agents changed the math: OpenRouter agent traffic up 37x since overtaking human traffic in February
- Anthropic's enterprise API share rose from 40% to 55%, OpenAI's from 27% to 31%, Google's fell from 21% to 9%; open-source is 19% of usage but only 4% of spend
- Coding ($34B) plus chatbots ($25B) make up 76% of the $77.3B app market; coding is 96% AI-native
- 55% of AI dollars are net-new spend, expanding the software economy
- Every $1 into model development generates $1.70 of revenue
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