US software stocks fall as Anthropic's new AI model revives disruption fears

U.S. software shares tumbled on Thursday after Anthropic held back the wide release of a powerful AI ‌model over concerns it could expose hidden cybersecurity vulnerabilities, deepening ‌investor fears about the threat to traditional software firms. Anthropic said earlier this week it ​would only allow a group of around 40 companies, including Microsoft and Google, access to its "Claude Mythos" model because it has already found thousands of vulnerabilities, including some in every major operating system and web browser. "If ‌Mythos is that strong ⁠and that powerful and it's exposing these vulnerabilities that have been around for years, it just shows one, ⁠the weakness of the current software that's out there and two, that AI is still making incredible progress versus legacy software companies," said Michael O’Rourke, ​chief ​market strategist at JonesTrading.