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Generative AI Spend by Category: 2023–2025

Menlo VenturesDecember 2025
Generative AI Spend by Category: 2023–2025
Chart by Menlo Ventures. Source: menlovc.com

The chart shows enterprise spend on Generative AI breakdown across six main categories from 2023 to 2025 in billions of USD. Spending on foundation models and application AI (horizontal and departmental AI) experiences the highest growth, reaching $12.5B, $8.4B, and $7.3B respectively by 2025.

LabelValue shown on the chart
Foundation models (2025)$12.5B
Foundation models (2024)$3.5B
Model training (2025)$4.0B
AI infrastructure (2025)$1.5B
Horizontal AI (2025)$8.4B
Departmental AI (2025)$7.3B
Vertical AI (2025)$3.5B

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