Sources: Anthropic told investors that distillation accounts for 5% to 7% of revenue; its rapid but slowing revenue growth could weigh on its IPO valuation
THE SO WHAT
Distillation contributing only 5–7% of revenue while growth slows suggests that model compression is a feature, not a standalone business line, at current scale. For enterprise buyers, this is a reminder to negotiate around total value and workload mix, not just cheaper distilled endpoints.
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