This month, we take stock of the rapid developments across Big Tech and the broader AI ecosystem. With “conference season” and Q1 earnings now behind us, we zoom out to assess the key players, shifting dynamics, and emerging battlegrounds shaping the enterprise AI landscape at the midpoint of 2025.
We explore how the global AI race is evolving across foundational labs, cloud hyperscalers, SaaS incumbents, and AI-native startups—and what it all means for company-building in the second half of the year and beyond.
Here’s a preview:
- All roads lead to AI: 2025’s spring conference cycle reinforced what earnings and product roadmaps have long signaled—AI is now the core strategic focus across the modern tech stack. From model integrations and agent frameworks to developer platforms and hardware, every major player is betting big on AI in an effort to demonstrate innovation, redefine existing industries, and secure future distribution.
- Leading labs moving up the stack: With capabilities at the model layer converging, companies like OpenAI and Anthropic are swiftly expanding into applications. Multi-billion-dollar M&A, high-profile talent moves, and breakout launches like Claude Code reflect a strategic push toward application-layer dominance, driving new competitive dynamics in the market.
- Big Tech is all in: Microsoft’s disciplined execution and strategic positioning have made it the default AI partner for the enterprise. Meanwhile, Google is accelerating, Amazon is doubling down on infrastructure bets like Trainium and Bedrock, Meta is operating in “whatever it takes” mode—and Apple’s AI strategy remains an open question.
- Startups scaling at record rates: More than 60 AI-native startups have reached or are nearing $50M in ARR, with notable breakout traction in categories like Sales & Marketing (e.g., Clay, Hightouch), Knowledge Management (e.g., Glean), and Customer Support (e.g., Sierra, Decagon). Despite intense competition from incumbents, the window for innovation remains wide open.
- New frontiers emerging: Agents, AI-native hardware, and autonomous workflows are no longer speculative—early product cycles are underway. As the stack evolves beyond chatbots and copilots, ambitious companies are rethinking distribution, user experience, and form factor from the ground up.