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Simon Willison (@simonwillison.net): "Anthropic told investors on Wednesday distillation accounted for 5 per cent to 7 per cent of revenue" If true, and Q2 revenue was $11.5B, then that's more than half a billion dollars spent by other…

L4 · DeveloperIndustry & Business@simonwillison.net$$· 10/15/2026

Provides insider data on competitive dynamics and revenue streams in the AI model market relevant to developers building business cases.

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Anthropic revealed that distillation accounts for 5-7% of revenue, suggesting competitors are spending over $500M annually to replicate its models.

Excerpt

"Anthropic told investors on Wednesday distillation accounted for 5 per cent to 7 per cent of revenue" If true, and Q2 revenue was $11.5B, then that's more than half a billion dollars spent by other labs to distill Anthropic's models! www.ft.com/content/1163...

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