# Menlo estimates enterprise AI spending at $176.8 billion in 2026

_Published Wednesday, November 4, 2026 at 8:41 AM EST · AI, Products · Latest · Tier 2 — Notable_

Menlo Ventures estimates enterprises will spend $176.8 billion deploying AI in 2026, up from $33 billion in 2025, in its newly released State of Enterprise AI report. Anthropic, OpenAI and Google captured $122.7 billion, or 69% of deployment spending, up from 50%.

A survey of roughly 400 U.S. enterprise decision-makers found that 55% of incremental AI spending came from new budgets and 22% from software budgets. Incumbents retained 13 percentage points of the spending transferred from software, while AI-native vendors received 9 points. Menlo invests in several companies covered by the report.

## Sources

- [SaaStr](https://www.saastr.com/ai-spend-hit-177-billion-this-year-only-22-of-it-came-out-of-software-budgets/)

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Canonical: https://techandbusiness.org/newswire/w5DlpHB9zRrflE8TCOqQG2
Published: 2026-11-04T13:41:55.408Z
Story chronology: 2026-11-04T13:00:11.000Z
Retrieved: 2026-11-04T22:01:15.598Z
Publisher: Tech & Business (techandbusiness.org)