Anthropic's revenue growth slows amid efforts to block AI copycats

Anthropic's revenue growth slowed in the third quarter of 2026, according to reports, raising concerns among investors as the AI startup prepares for an IPO. The company generated $16.8 billion in revenue during the quarter, a significant figure but a slowdown from earlier in the year. Anthropic disclosed that 5% to 7% of its revenue comes from a process called distillation, where rival AI developers use its Claude models to train their own systems. The Information reported that Anthropic has been cracking down on this practice, particularly targeting Chinese AI companies, and claims the effort has been successful. This crackdown may be contributing to the reported slowdown in revenue growth. The company also indicated that distillation-related revenue is expected to decline further, according to The Information. This situation mirrors past challenges faced by Twitter, where user growth numbers were adjusted after accounting for fake accounts. Investors are now being urged to distinguish between genuine customer demand and revenue generated by companies attempting to copy Anthropic's AI technology.