ICONIQ released the third edition of its State of AI report in 2026, based on a Q2 survey of roughly 305 executives at software companies building AI products. The report highlights that Anthropic has overtaken OpenAI as the most-used AI provider, with 81% usage compared to OpenAI's 71%, up from 51% in Q4 2025. Google follows at 50%. The average AI builder now uses 3.3 providers, reflecting a diversified approach to AI integration, according to saastr.com.
The report shows a shift in the AI landscape where the competition is less about individual labs and more about the broader category battle between frontier leaders and open source models. Licensed frontier APIs still lead with 80% usage, down from 85%, while open source models have risen to 40% from 37%, surpassing proprietary in-house models at 37%. ICONIQ expects open source adoption to continue growing due to cost and control benefits, signaling a strategic pivot among AI product developers.
This shift underscores a maturing AI market where companies increasingly treat AI pricing, cost, and organizational design as integral product decisions rather than afterthoughts. AI products now approach half of the revenue at surveyed companies, with expanding margins. The report’s findings contrast with the January 2026 edition, which focused on proving AI’s effectiveness, while the current edition emphasizes AI’s profitability and operational integration, marking a notable evolution in the sector.
The next State of AI report from ICONIQ is expected in early 2027, which will provide further insights into AI adoption trends and financial impacts across the software industry, continuing to track how providers like Anthropic, OpenAI, and Google evolve in market share and influence.