Anthropic Concerns Trigger Sharp Fall in IBM Shares

Technology giant IBM witnessed a sharp decline in its share price, plunging 13.2% in a single trading session. This marks the company’s biggest one-day drop in the past 25 years. The fall followed an announcement that Anthropic’s Claude AI tool could modernize the programming language used in IBM’s systems, triggering a negative reaction in the market.

IBM’s COBOL programming language is widely used across banking, insurance and government sector systems. Traditionally, modernizing these legacy systems requires years of effort and the involvement of thousands of consultants. However, expectations that new AI-driven solutions could significantly accelerate this process have raised concerns among investors, contributing to the stock’s steep decline.