IBM latest AI casualty: Shares tank 13% on Anthropic programming language threat (www.cnbc.com)

IBM's stock plummeted nearly 13.2% on Monday, closing at $223.35 per share, following news from Anthropic regarding its Claude Code tool, which promises to modernize legacy COBOL systems significantly used in business transactions. Anthropic highlighted that Claude Code could automate the complex tasks involved in analyzing and exploring COBOL code, which is essential for updating the aging systems that power critical sectors like finance and government. With around 95% of U.S. ATM transactions relying on COBOL, the threat posed by advancements in AI technology has raised alarms for IBM, a major player in the mainframe market. This development is significant for the AI/ML community as it underscores the potential of AI to disrupt traditional software systems and the inherent “technical debt” associated with legacy code. By making COBOL modernization more accessible and cost-effective, Anthropic aims to streamline processes that have long hindered companies' digital transformation efforts. The response from investors reflects a growing concern over the impact of AI advancements on established tech firms like IBM, as they grapple with the rapid pace of innovation reshaping the industry landscape.