US based Tech startup Anthropic, which owns the AI Claude chatbot, has launched a new tool, Claude Code Security. This tool wasn’t just a usual release. It is developed to help in finding security problems in software code by reading and understanding the way people do, not just matching patterns like old tools. It tried to spot hidden flaws in code, trace how different parts interact, and even suggest fixes. Anthropic stated that its team had found “over 500 vulnerabilities in production open-source codebases that had gone undetected for decades of expert human review.”
The idea of the tech startup was to make security better by letting AI help software teams find bugs that humans and normal scanners would miss. Claude Code Security ran multiple checks on each finding, tried to prove or disprove its own results, and ranked them so people could fix the most serious bugs first. Anthropic explained: “We also use Claude to review our own code, and we’ve found it to be extremely effective at securing Anthropic’s systems.”
Wall Street Impact
But markets didn’t see it as just a security tool. On the very day the preview was announced, cybersecurity stocks collapsed. Big names that sell tools and services to protect companies saw their share prices dive as investors panicked, worrying that AI could make traditional security work less valuable. Billions of dollars in market value disappeared almost overnight.
Just a couple days later, anthropic caused another shock. This time it was about legacy software and old programming languages. In a blog post, Anthropic said its Claude Code tool could help modernize COBOL, a language written decades ago that still runs many bank systems, government computers, and ATMs. They explained, “Modernizing a COBOL system once required armies of consultants spending years mapping workflows. Tools like Claude Code can automate the exploration and analysis phases that consume most of the effort.”
The IBM Falls on Market
Investors took this seriously. International Business Machines Corporation (IBM) which still makes a lot of its money helping big companies update and run COBOL systems saw its stock plunge 13%, marking one of its worst single day drops in over 25 years and wiping about $30 billion off its value.
The fear spread beyond the U.S. Even Indian IT stocks slid sharply, with indexes and service firms falling as traders fretted about how AI could change the business of coding and maintaining software.
At first it seemed like just two AI tools. But in the markets, the idea that AI could automate deep technical work shook confidence fast and left many wondering if this was a real disruption or just fear running wild.
Syed Ziyauddin is a media and international relations enthusiast with a strong academic and professional foundation. He holds a Bachelor’s degree in Mass Media from Jamia Millia Islamia and a Master’s in International Relations (West Asia) from the same institution.
He has work with organizations like ANN Media, TV9 Bharatvarsh, NDTV and Centre for Discourse, Fusion, and Analysis (CDFA) his core interest includes Tech, Auto and global affairs.
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