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I couldn't catch how this stops AI. Can't an AI bot do the POW?
Or is it more the idea that if this was widely deployed, it would become very costly for bots to scrape?
I think the idea is less motivated bots will timeout loading the page. They probably defend themselves from pages/sites that take a lot of time and resources to load. Also, most crawlers afaik don't expect to encounter big CPU loads.
But you're right, one site will only slow a bot down which won't stop them.
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