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IBM is the latest AI casualty. Shares are tanking 11% on Anthropic programming language threat
Anthropic's AI tool automates COBOL modernization, threatening IBM's legacy business which handles 95% of U.S. ATM transactions, causing an 11% stock drop.
- On Monday, IBM shares plunged 11% in afternoon trading after Anthropic outlined a new COBOL use case for Claude Code, contributing to a nearly 22% year-to-date decline.
- Anthropic's Monday blog post said `COBOL handles an estimated 95% of ATM transactions in the U.S.` and explained Claude Code automates exploration and analysis for COBOL modernization, arguing `AI flips that equation`.
- COBOL traces to the 1950s and still powers payment-processing and retail transaction systems, making business data processing a core area for IBM linked to legacy modernization.
- Traders on the NYSE sold IBM shares after Anthropic outlined that `COBOL continues to power systems responsible for large volumes of transactions,` raising concerns about automation disrupting legacy-code vendors serving banks, airlines, and government systems.
- If AI scales automation, Anthropic's claim that AI lowers legacy-code modernization costs suggests major shifts for banks and airlines using COBOL in ATMs and payment infrastructure.
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IBM shares plunge as Anthropic touts COBOL modernization efforts
International Business Machines Corp. shares plunged on Monday, after the artificial intelligence startup Anthropic said its Claude Code tool can help with modernizing COBOL, a dated programming language that’s mainly run on IBM computers.
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IBM's stock price suffered its worst day in 25 years. On the 23rd (local time), Anthropic announced that its "Claude Code" tool can help modernize the aging programming language Cobol.
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Total News Sources9
Leaning Left0Leaning Right2Center3Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
C 60%
R 40%
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