Where startups are spending on AI according to a16z and Mercury

Full report from @olivia_moore @mha1 & @seema_amble :

• Horizontal apps have a slight lead over vertical (60% of the list). This includes general assistants (ex. @Perplexity) and SIX different meeting support tools (ex. Fyxer AI). But, it also encompasses creative tools and vibe coding tools that are used in roles across orgs.

• Vertical apps can augment human labor...or replace it. We're mostly seeing the former - but five companies on the list allow customers to "hire AI" (ex. Crosby Legal, @Cognition IP , @11X). Labor augmenters mostly assist with customer service, sales, and recruiting.

• Vibe coding has landed in enterprises. It's not just a prosumer trend! Number three on the list, below @OpenAI and Anthropic? Replit. Other listmakers in the category include @Lovable and @Emergent 2.0, while @Cursor made the ranks for more technical users.

• Products are making the consumer -> enterprise jump. 12 cos also appeared in our most recent Consumer AI Top 100 - almost all of which started out B2C and have migrated B2B over time. In fact, 70% of listmakers are available for individual use (no enterprise license needed)!