Cybersecurity company shares, including JFrog and CrowdStrike, plummeted after AI firm Anthropic unveiled a tool that autonomously finds and patches software vulnerabilities, sparking investor angst over the impact of generative AI on the industry.
Market Plummets for Cybersecurity Firms
Shares of companies in the cyber security solutions space have nosedived after an American-based AI company, Anthropic PBC, unveiled a tool that is capable of autonomously finding and patching possible software vulnerabilities. At the time of filing this report, JFrog shares were 24 per cent down, CrowdStrike Holdings' shares were 8 per cent down, Okta was over 9 per cent down, and GitLab was over 8 per cent. Similarly, shares of Zscaler, Rubrik Inc, and Palo Alto Networks also dropped sharply, data showed.
Anthropic Unveils AI-Powered Security Tool
Anthropic's Claude Code Security is a new capability built into Claude Code on the web. The company said it is now available in a limited research preview. "It scans codebases for security vulnerabilities and suggests targeted software patches for human review, allowing teams to find and fix security issues that traditional methods often miss," the company said in a statement.
Claude Code Security is intended to put solutions squarely in the hands of defenders and protect code against this what it said new category of AI-enabled attack. "We're releasing it as a limited research preview to Enterprise and Team customers, with expedited access for maintainers of open-source repositories, so we can work together to refine its capabilities and ensure it is deployed responsibly," their statement added.
Growing Investor Angst Over AI
Ever since the emergence of Artificial Intelligence, many have been apprehensive that AI-integrated companies may emerge as competitors. There's growing investor angst over generative AI software coding tools and automated AI assistants, and how they might impact traditional software companies -- their broader business outlook and, in particular, their profit margins. (ANI)
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