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

Anthropic's revenue growth slowed in the third quarter, disappointing some investors as the AI startup prepares to go public. There's an intriguing explanation for at least part of the slowdown: The company may be getting better at stopping rivals from stealing its AI secrets. Anthropic generated $16.8 billion in revenue during the third quarter, my colleague Stephen Council reported on Wednesday. While that's impressive growth by almost any standard, it's a slowdown from earlier in the year. Here's where things get interesting. Anthropic told prospective investors this week that 5% to 7% of its revenue comes from something called distillation, The Information reported. This is when rival AI developers use Anthropic's Claude models to help train their own competing systems.

Also reported by Business Insider.

First reported by Insider. This page is a short excerpt; the full text is theirs.