B2BVault's summary of:

A16Z: Enterprise AI Spending is Growing 75% a Year.

Published by:
SaaStr
Author:
Jason Lemkin

Introduction

AI in big companies is no longer just a test project. It's now a key part of their main tech spending, growing 75% every year.

What's the problem it solves?

This article explains how enterprise AI spending is growing fast and changing the way companies buy, build, and use AI tools. It helps software businesses understand what’s really happening so they can sell smarter.

Quick Summary

AI is now a major part of company tech budgets, not just an extra idea to play with. Spending has jumped by 75% in a year, and CIOs are no longer testing-AI is part of their everyday operations. Software sellers must now treat AI products like regular tools and meet high security and performance needs.

Most companies use many AI models, not just one. They care about speed, price, and results. Instead of building their own AI tools, they’re buying ready-made ones to save time and avoid switching issues. New AI-first startups are beating older companies by moving faster and offering better products.

Buying AI now feels like buying normal software: reviews, tests, safety checks, and easy pricing matter most. The fun, messy early days of AI are over. Now, companies want smart, safe, and clear solutions.

Key Takeaways from the article

  • AI budgets grew 75% in one year and are now part of core IT
  • 37% of companies use five or more AI models in production
  • Buying AI apps is now more common than building in-house
  • AI-first startups grow much faster than old software companies
  • Google’s Gemini 2.5 Flash offers big cost savings over GPT-4.1
  • Changing AI models takes a lot of time due to tuned prompts
  • Performance now depends on how you mix models, not which one
  • Companies prefer vendors with strong benchmarks and safety checks
  • AI buying now includes full tests, cost reviews, and security lists
  • Fast growth now depends on trust, results, and smart delivery

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