Anthropic Leads LLM Providers for Enterprises: Menlo Ventures

Anthropic is the leading Large Language Model (LLM) provider for enterprises, according to Menlo Ventures' 2025 Mid-Year LLM Market Update. Menlo Ventures Partner Tim Tully discusses the company's dominance in the market on "Bloomberg Tech".

Anthropic has solidified its position as the leading Large Language Model (LLM) provider for enterprises, according to Menlo Ventures' 2025 Mid-Year LLM Market Update. The report, released on July 31, 2025, indicates that Anthropic now holds 32% of the enterprise LLM market share by usage, surpassing OpenAI's 25% share. This marks a significant shift from just two years ago when OpenAI held 50% of the market share, while Anthropic commanded only 12% [1].

The turnaround is largely attributed to Anthropic's release of its Claude 3.5 Sonnet model in June 2024 and the subsequent introduction of Claude 3.7 Sonnet in February 2025. These releases have not only accelerated the company's momentum but have also made it the preferred choice for enterprise developers, particularly in coding tasks. Anthropic now holds 42% of the enterprise coding market share, more than double that of OpenAI's 21% [1].

The preference for closed models over open-source models is also evident. According to the report, more than half of enterprises do not use open-source models at all. Only 13% of enterprise daily workloads use open-source models as of mid-year 2025, down from 19% at the beginning of the year. Meta's Llama remains the dominant open-source model, but its market share has also declined [3].

Anthropic's success is driven by several key factors. The company's models have shown superior performance in code generation, which has become a major application area for AI. Additionally, Anthropic's approach to training models as "agents" using reinforcement learning with verifiable rewards (RLVR) has significantly boosted the models' capabilities and user adoption. This strategy allows models to think step-by-step, reason through problems, and use external tools across multiple interactions, making them more effective for real-world applications [3].

The shift in enterprise preferences is also reflected in the increasing focus on model performance over cost. According to the report, 66% of builders upgraded models within their existing provider, while only 11% switched vendors. The decision to switch models is primarily driven by performance, not price. As new models are released, enterprises quickly adopt the best-performing ones, even if they are more expensive [3].

In conclusion, Anthropic's dominance in the enterprise LLM market is a testament to its innovative approach and superior model performance. The company's success has not only shifted the market dynamics but has also set a new standard for enterprise AI adoption.

References:
[1] https://techcrunch.com/2025/07/31/enterprises-prefer-anthropics-ai-models-over-anyone-elses-including-openais/
[2] https://finance.yahoo.com/video/top-llm-providers-enterprises-201829782.html
[3] https://menlovc.com/perspective/2025-mid-year-llm-market-update/