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The Agentic Category: How Enterprise AI Invented a Word and a $100B Market

The word "agentic" didn't exist in tech coverage until January 2025. By December, it appeared in 50 headlines and defined a category that spawned $10B valuations and 139 funded startups. The data on how a word became a market.

MMNTM Research
15 min read
#Research#AI Agents#Enterprise AI#Market Analysis#Data Analysis

The Word That Didn't Exist

On January 6, 2025, the word "agentic" had never appeared in a major tech headline. By December 26, it had appeared in 50. In between, the term defined a category that spawned 139 funded startups, two $10B+ valuations, and a three-way race between Salesforce, Microsoft, and OpenAI.

'Agentic' Headlines

0 → 50

January to December 2025

This is the story of how enterprise AI invented a word—and a $100B market.


Part 1: The Pre-History (2018-2023)

When Agents Were Games

Before 2024, "AI agent" meant one thing: game-playing systems in research labs.

"New research from OpenAI shows how an AI agent with a sense of curiosity outperformed its predecessors playing the classic 1984 Atari game Montezuma's Revenge" — The Verge, November 2018, Position #4, 3 related

"DeepMind researchers detail how they designed autonomous agents that exhibited humanlike behavior when playing a first-person multiplayer game mode in Quake III" — New York Times, June 2019, Position #4, 11 related

FeatureYearAI AgentAgentic
2018201810
2019201910
2020202000
2021202100
2022202210
2023202340
20242024500
2025202516350

The pattern is clear: AI agents were academic curiosities. Zero enterprise relevance until ChatGPT created the foundation.


Part 2: The Inflection (Q4 2024)

Three Weeks That Changed Everything

Between September 13 and November 14, 2024, three announcements created a category:

September 13, 2024 — Salesforce declares the pivot

"Interviews with Marc Benioff and others about Salesforce's 'hard pivot' to Agentforce, a platform for users to build and deploy AI agents in Salesforce's apps" — Fortune, September 2024, Position #30, 4 related

October 21, 2024 — Microsoft responds

"Microsoft unveils 10 new AI agents for its enterprise-focused Dynamics 365 apps covering sales, finance, and more, ahead of Salesforce's Agentforce availability" — GeekWire, October 2024, Position #5, 27 related

November 14, 2024 — OpenAI enters the race

"Sources: OpenAI plans to launch a new AI agent codenamed Operator, which can use a computer to take actions on a person's behalf, in January 2025" — Bloomberg, November 2024, Position #11, 19 related

The Q4 2024 Signal: In 8 weeks, the three largest enterprise software companies declared agents as their strategic direction. The category was no longer theoretical.


Part 3: The Word Appears (2025)

First "Agentic" Mentions

The word "agentic" entered tech vocabulary on January 7, 2025:

"Nvidia debuts the Llama Nemotron and Cosmos Nemotron family of models to advance agentic AI, in Nano, Super, and Ultra sizes, on Nvidia's site and Hugging Face" — VentureBeat, January 2025, Position #8, 8 related

Then it spread:

"Anthropic releases Claude 3.7 Sonnet, a hybrid model that can produce fast responses or extended, step-by-step thinking, and Claude Code, an agentic coding tool" — TechCrunch, February 2025, Position #9, 20 related

"Internal email: Amazon forms a new group focused on agentic AI, led by AWS executive Swami Sivasubramanian, who will report directly to AWS CEO Matt Garman" — Reuters, March 2025, Position #48, 6 related

The $2.85B Legitimacy Event

The ServiceNow-Moveworks acquisition cemented "agentic" as enterprise vocabulary:

"ServiceNow says it plans to acquire agentic AI company Moveworks for $2.85B, its largest-ever acquisition, in a cash and stock deal set to close in H2 2025" — Reuters, March 2025, Position #12, 19 related

Moveworks Acquisition

$2.85B

Set the M&A floor for agentic startups


Part 4: The Startup Explosion

Two Unicorns in Coding Agents Alone

The agent category created the fastest startup value creation in enterprise software history.

Sierra: Customer Service Agents

"Bret Taylor's Sierra raised $350M at a $10B valuation, up from $4.5B in October 2024, and says its AI customer service agents are used by 'hundreds of millions'" — CNBC, September 2025, Position #31, 7 related

Cognition: Coding Agents

"Cognition raised $400M led by Founders Fund at a $10.2B valuation, up from $4B in March; its coding tool Devin's ARR grew from $1M in Sept. 2024 to $73M by June" — Bloomberg, September 2025, Position #13, 0 related

Cursor: AI-Assisted Coding

"Sources: Anysphere, maker of AI coding tool Cursor, raised $900M at a $9B valuation, up from $2.5B in January 2025, led by Thrive; a16z and Accel also invested" — Financial Times, May 2025, Position #5, 3 related

FeatureCompanyCategoryValuationDate
cognitionCognition (Devin)Coding$10.2BSep 2025
sierraSierraCustomer Service$10BSep 2025
cursorCursor (Anysphere)Coding$9BMay 2025
manusManusGeneral Agent$500MApr 2025

The Manus Phenomenon

A Chinese startup became the viral proof point:

"A look at Manus, which its Chinese creators claim is the world's first fully autonomous AI agent, as some say it might be China's second DeepSeek moment" — Forbes, March 2025, Position #5, 17 related

"Chinese startup Manus raised $75M led by Benchmark at a $500M valuation, and plans to expand to markets including the US, Japan, and the Middle East" — Bloomberg, April 2025, Position #15, 3 related

Manus in 8 Months

$100M ARR

December 2025 milestone

A general-purpose agent startup reaching $100M ARR in 8 months. The category was real.


Part 5: The Capability Race

Computer Use Becomes Table Stakes

Anthropic pioneered it. Everyone else followed.

"Anthropic releases a new Claude 3.5 Sonnet model that can interact with desktop apps by imitating mouse and keyboard input via a 'computer use' API, now in beta" — TechCrunch, October 2024, Position #1, 3 related

"OpenAI partners with DoorDash, eBay, Instacart, Priceline, StubHub, Uber, and other companies to ensure that Operator respects their terms of service agreements" — TechCrunch, January 2025, Position #15, 13 related

"Microsoft adds a 'computer use' tool in Copilot Studio to let AI agents use websites and desktop apps; the feature is designed to detect UI changes dynamically" — The Verge, April 2025, Position #16, 4 related

"Google releases the Gemini 2.5 Computer Use model, built on Gemini 2.5 Pro's capabilities to power agents that can interact with UIs, in preview via the API" — The Keyword, October 2025, Position #41, 21 related

The Pattern: Anthropic ships computer use (October 2024). OpenAI commercializes it (January 2025). Microsoft and Google follow (April-October 2025). 12 months from research demo to industry standard.


Part 6: The DOD Legitimizes the Category

National Security Goes Agentic

The Department of Defense validated the category with institutional capital:

"The US DOD announces OpenAI, Google, Anthropic, and xAI have each won contracts with a $200M ceiling, aimed at enabling agentic AI national security workflows" — Reuters, July 2025, Position #37, 31 related

"Trump signs an EO establishing the Genesis Mission to boost AI innovation, including by using federal scientific datasets to train models and create AI agents" — Reuters, November 2025, Position #3, 33 related

DOD Contract Ceiling

$200M

Per company for agentic workflows

When the DOD awards $200M ceiling contracts for "agentic AI national security workflows," the category has moved from hype to institutional adoption.


Part 7: The Monthly Arc

2025 Coverage by Month

MonthArticlesKey Event
Jan14Operator launches
Feb15Deep Research, Claude 3.7
Mar34ServiceNow-Moveworks $2.85B
Apr17Amazon "Buy for Me"
May28Claude Code GA, Cursor $9B
Jun30Anthropic Claude Research
Jul32DOD contracts, ChatGPT Agent
Aug17Manus Wide Research
Sep26Sierra $10B, Cognition $10.2B
Oct39Gemini 2.5 Computer Use
Nov29Claude Opus 4.5, Trump EO
Dec25Manus $100M ARR

Peak month: July 2025 — driven by DOD contracts and ChatGPT Agent launch.


Part 8: Who Owned the Category?

Company Share of Agent Coverage (2025)

FeatureCompanyArticlesAvg RelatedPosition
otherStartups/Other1713.7Fragmented
googleGoogle3311.1Highest impact
openaiOpenAI336.9Consumer-focused
microsoftMicrosoft269.4Enterprise incumbent
anthropicAnthropic168.8Developer-focused
salesforceSalesforce118.8Category creator

No single company dominated. Startups captured 54% of coverage. The category fragmented immediately.


The Three-Act Structure

Act 1: Research Curiosity (2018-2023)

AI agents existed only in gaming research. DeepMind's Quake III bots. OpenAI's Montezuma's Revenge. Zero enterprise relevance.

Act 2: Category Creation (Q4 2024)

Three weeks changed everything:

  • Sep 13: Salesforce Agentforce launches
  • Oct 21: Microsoft Dynamics agents
  • Nov 14: OpenAI Operator leaked

Enterprise declared: "Agents are the product."

Act 3: Explosion (2025)

The word "agentic" entered the vocabulary. The DOD legitimized the category. Two coding agent startups hit $10B valuations. Manus reached $100M ARR in 8 months.


What This Means

For Enterprise Software

  • Every SaaS is adding agents — ServiceNow, Salesforce, Microsoft leading
  • The $2.85B Moveworks acquisition set the M&A floor
  • Workflow automation is the wedge — agents start with specific tasks

For Startups

  • Vertical beats horizontal — Sierra (customer service), Cognition (coding), specialized agents winning
  • Speed matters — Manus: 8 months to $100M ARR
  • Valuations are extreme — $9-10B for coding assistants

For the Category

  • "Agentic" is now permanent vocabulary — 50 headlines created a category
  • Computer use is table stakes — every major model has it
  • The DOD legitimized it — $200M ceiling contracts for national security workflows

The Pattern: The "agentic" category is the fastest category creation in enterprise software history. A word that didn't exist in January 2025 now defines $10B+ startups, $2.85B acquisitions, and 139 funded companies.


The Question That Remains

The agent thesis was a prediction. The data is the confirmation.

  • 163x growth: "AI agent" mentions from 1 (2018) to 163 (2025)
  • Category invented: "Agentic" from 0 (pre-2025) to 50 (2025)
  • 139 funded startups in 24 months

The question isn't whether agents are real. The data proves they are.

The question is whether the current valuations can be sustained when the category fragments further. When every SaaS has agents, what's the moat?


See also: The Agent Thesis for the strategic framework, State of Agents for market mapping, and Agent Memory Architecture for technical patterns.

The Agentic Category: How Enterprise AI Invented a $100B Market