Anthropic has introduced Claude Code Security, an AI tool designed to enhance code security by identifying vulnerabilities and proposing patches. Currently in limited preview for Enterprise and Team plan customers, it prioritizes access for open-source maintainers. The launch has caused significant unrest in the cybersecurity market, leading to a sharp sell-off of stocks, with CrowdStrike, Cloudflare, and Okta experiencing declines of up to 9%. The Global X Cybersecurity ETF also dropped to a record low since November 2023, with losses amounting to billions. Unlike traditional rule-based scanners, Claude Code Security uses advanced techniques to analyze code as a human researcher would, successfully detecting over 500 long-hidden vulnerabilities. Broader investor concerns regarding AI’s potential to disrupt established software solutions further amplify these declines, with the iShares Expanded Tech-Software Sector ETF plummeting over 23% this year, marking its steepest quarterly drop since 2008.
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