Even as OpenAI is holding steady as the most popular AI model for customers, it’s rapidly losing ground in the enterprise space.
New data from Menlo Ventures reveals a reshuffling of the enterprise LLM API market, with OpenAI’s dominance eroding significantly over the past two years. The venture firm’s latest report shows OpenAI’s market share plummeting from 50% in 2023 to 27% by 2025, marking a steep 23-percentage-point decline as competitors gain traction with enterprise customers.
The Rise of Anthropic
The biggest winner in this shift has been Anthropic, whose market share has surged from just 12% in 2023 to 40% in 2025. This more than threefold increase positions Anthropic as the clear leader in enterprise LLM API usage, overtaking OpenAI for the first time. The company’s Claude models have evidently resonated with enterprise customers seeking alternatives to OpenAI’s offerings.
Google’s Steady Climb
Google has also made significant gains, tripling its market share from 7% in 2023 to 21% in 2025. This steady growth trajectory demonstrates the search giant’s ability to leverage its cloud infrastructure and AI expertise to capture a meaningful portion of the enterprise market. Between 2023 and 2024, Google grew from 7% to 12%, and then nearly doubled again to reach 21% by 2025.
Meta’s Lost Market Share
Meta has seen its market share erode, moving from 16% in both 2023 and 2024 to 8% in 2025. While this represents a decline, the company maintains a presence in the enterprise space.
The Coding Market Tells a Different Story
Interestingly, when examining the coding-specific market segment, the competitive dynamics shift somewhat. By 2025, Anthropic holds a commanding 54% share of the coding market, significantly higher than its overall 40% enterprise market share. OpenAI maintains 21% in coding applications, while Google holds 11% and Meta captures 8%. The remaining 14% is divided among other providers.
Implications for the AI Industry
The data underscores a fundamental shift in enterprise AI adoption patterns. While OpenAI pioneered the commercial LLM market and captured early dominance, enterprise customers are increasingly diversifying their AI infrastructure. Factors driving this shift likely include pricing considerations, model performance on specific tasks, data privacy concerns, and the desire to avoid vendor lock-in.
For Anthropic, the numbers validate its enterprise-focused strategy and emphasis on safety and reliability. Google’s gains demonstrate that established cloud providers with existing enterprise relationships can effectively compete in the AI space. The overall trend suggests that the enterprise LLM market is evolving toward a multi-vendor landscape rather than remaining winner-take-all territory.
As enterprises continue to integrate AI into their operations, this competitive dynamic is likely to intensify, potentially benefiting customers through improved pricing, features, and service options across the industry.