Anthropic's new AI tool rattles software stocks and IBM shares plunge

Anthropic, an AI company, released new AI tools that can perform tasks like modernizing old computer code. This announcement caused a sharp sell-off in the stocks of many software and cybersecurity companies, including IBM, which had its worst daily drop in over 20 years.

At the same time, Anthropic is raising a massive amount of money, with reports of a new $30 billion funding round valuing the company at hundreds of billions of dollars. The company is also letting some employees sell their shares and is reportedly preparing for an eventual public stock offering.