Citigroup Raises AI Market Forecast to More Than $4 Trillion

Citigroup has raised its outlook for the global AI sector, pointing to stronger-than-anticipated uptake by businesses adopting AI-driven tools for software development and automation. The bank highlighted rapid progress among companies like Anthropic, which has posted significant gains in revenue. 

In a research note dated April 27, the Wall Street firm projected that the worldwide AI industry could exceed $4.2 trillion in value by the end of the decade. Of that total, about $1.9 trillion is expected to come from enterprise-focused applications. This marks a notable revision from Citi’s earlier estimate, which placed the overall market above $3.5 trillion, with close to $1.2 trillion linked to corporate use. 

According to the report, much of Anthropic’s growth has been fueled by demand for its Claude family of AI models and its coding-focused tools. Citi also referenced the company’s Mythos AI preview, suggesting that while it may not generate immediate revenue, it has the potential to deliver long-term advantages as the technology matures. 

The bank noted that Anthropic has concentrated heavily on business clients from an early stage. This approach appears to have paid off, with more than 80 percent of its income coming from enterprise customers. Citi described the firm as a leading force in this segment, placing it ahead of key competitors, including OpenAI. 

The report also detailed the speed at which Anthropic has expanded its operations worldwide. By April, its annual revenue run rate had surpassed $30 billion, representing one of the fastest growth trajectories seen in the AI field. Most of this income has been generated through corporate partnerships, underlining the company’s focus on serving organizations rather than individual users. 

Citi further pointed to large-scale infrastructure agreements as a major factor behind Anthropic’s rising influence. The company has secured a partnership with Google valued at up to $40 billion, alongside a $125 billion deal with Amazon announced this week. These arrangements highlight the scale of computing resources required to support advanced AI systems and continued development. 

At the same time, competition within the artificial intelligence industry is intensifying. Major technology firms, including OpenAI and Google, are expanding their presence in the enterprise space. The competitive focus is shifting beyond raw model performance. Factors such as system reliability, ease of integration into existing workflows, and overall efficiency are becoming increasingly important. 

Citi noted that this evolving landscape is likely to define the next stage of the market’s growth. As companies race to secure a foothold among business users, the ability to deliver practical, scalable solutions could determine which players emerge as dominant forces in the years ahead. 

With specialized firms like Core AI Holdings Inc. (NASDAQ: CHAI) putting AI at the center of the products they develop, the growth trajectory forecast by Citigroup and other major financial institutions could even be surpassed. 

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