a16z AI Spending Report Reveals Startup Investment Trends in AI Tools
Key Points
- a16z and Mercury released an AI Spending Report analyzing startup expenditures on AI tools.
- OpenAI and Anthropic lead the spend, followed by coding platforms like Replit and Cursor.
- Startups favor “human augmentor” copilot tools, indicating a gradual shift toward full AI agents.
- Horizontal AI applications dominate the list, with vertical tools focused on sales, recruiting, and customer service.
- Consumer‑oriented apps such as Canva and CapCut are increasingly adopted in enterprise environments.
- The report highlights emerging AI solutions in legal, note‑taking, and other previously hard‑to‑crack sectors.
- Rapid market changes suggest that next‑year rankings could look very different.
Andreessen Horowitz, in partnership with Mercury, released its first AI Spending Report, analyzing transaction data to identify the top AI-native application layer companies that startups are purchasing. The study shows a diverse range of AI products in use, with major labs like OpenAI and Anthropic leading the spend, and a surge in “human augmentor” or copilot tools that boost workforce productivity. While startups continue to experiment with various solutions, the report signals a gradual shift toward more integrated, end‑to‑end AI agents as the technology matures.
Overview of the AI Spending Report
Andreessen Horowitz (a16z) teamed up with fintech firm Mercury to publish its inaugural AI Spending Report. By examining transaction data from Mercury, the report ranks the top 50 AI‑native application layer companies that receive startup spending, mirroring a prior list of the Top 100 Gen AI Consumer Apps.
Key Findings on Startup Adoption
The data reveals that startups are still adopting a broad spectrum of AI products for specific tasks, rather than converging on a few dominant solutions. a16z partners Olivia Moore and Seema Amble note a “proliferation of tools,” emphasizing that the market has not yet coalesced around one or two options in each category.
Spending is heavily weighted toward “human augmentors” or copilot‑type tools that enhance employee productivity. This suggests that many startups are not yet ready to transition fully to agentic workflows, where AI operates autonomously from end‑to‑end. Amble predicts that as AI capabilities evolve, the balance may shift toward more comprehensive agent tools.
Top Companies and Sectors
Major AI labs dominate the upper tier of the list, with OpenAI occupying the top spot and Anthropic holding the second position. Coding‑related platforms also feature prominently: Replit ranks third, while Cursor appears at number six and Emergent at number forty‑eight. Other notable entrants include Lovable, Cognition, and several note‑taking services such as Otter.ai, Read AI, and HappyScribe.
Horizontal applications account for at least sixty percent of the companies, while vertical applications make up the remaining forty percent. The most popular vertical categories are sales, recruiting, and customer service. The report also highlights emerging AI solutions in traditionally hard‑to‑crack sectors, such as legal services, exemplified by Crosby Legal, which can quickly review contracts for users.
Consumer Tools Crossing Into Enterprise
Moore observes a growing trend of consumer‑oriented tools being adopted in enterprise settings. Applications like CapCut and Midjourney, originally designed for personal use, are increasingly being integrated into workplace workflows. Canva serves as a prime example, having evolved from a popular consumer design app to a sizable enterprise platform after adding an enterprise plan.
This blurring of consumer and enterprise markets expands the total addressable market for AI tools, allowing companies to sell to both individual users and businesses simultaneously. The report suggests that this convergence may accelerate the professionalization of AI startups, prompting them to develop dedicated go‑to‑market, sales, and support teams earlier in their lifecycle.
Future Outlook
The AI tool landscape is expected to evolve rapidly. Legacy players—those that were prominent a year ago—may see new entrants disrupt their positions, while existing companies launch AI features to stay relevant. Amble remarks that a future iteration of the report could feature an entirely different set of note‑taking apps, underscoring the fluid nature of the market.
Overall, the AI Spending Report paints a picture of a dynamic ecosystem where startups experiment with a wide array of AI solutions, balancing immediate productivity gains with the longer‑term potential of fully autonomous AI agents.