Anthropic's crackdown on AI copycats may be hurting its revenue growth

What happened: Anthropic's revenue growth slowed in the third quarter. The company told prospective investors that 5% to 7% of its revenue comes from distillation, where rivals use its Claude models to train competing systems, and it has been cracking down on the practice. Key numbers: $16.8 billion in third quarter Why it matters: Anthropic said distillation revenue is expected to decline further, so its crackdown on copycats may be denting reported growth. Investors preparing for a possible IPO will need to separate genuine customer demand from revenue tied to rivals copying its AI. Coverage: 4 outlets in 24h

Anthropic's revenue growth slowed in the third quarter. The company told prospective investors that 5% to 7% of its revenue comes from distillation, where rivals use its Claude models to train competing systems, and it has been cracking down on the practice.

Anthropic said distillation revenue is expected to decline further, so its crackdown on copycats may be denting reported growth. Investors preparing for a possible IPO will need to separate genuine customer demand from revenue tied to rivals copying its AI.