Anthropic launches Claude Code Security as Nvidia partners on cybersecurity

Key Takeaways

• Anthropic's Claude Code Security tool, which finds and fixes open-source software vulnerabilities, caused cybersecurity stocks like CrowdStrike and Datadog to drop up to 11%.
• Market analysts suggest the cybersecurity stock sell-off was an overreaction, as Claude Code Security does not perform real-time security tasks.
• CrowdStrike maintains its relevance, stating that AI-driven threats will increase the need for comprehensive security platforms beyond autonomous code tools.
• The S&P 500 rebounded 0.6% after Anthropic clarified that Claude AI integrates with existing systems rather than displacing them, with Salesforce and Snowflake set to report earnings.
• AI accounting startup Basis raised $100 million in Series B funding, reaching a $1.15 billion valuation, aiming to address the accountant shortage with AI agents.
• Sales startup Letter AI secured $40 million in Series B funding, bringing its valuation into the hundreds of millions, and launched Letter Compass for real-time sales guidance.
• Call-center operator Teleperformance faces increased short selling due to fears that AI could automate up to 30% of its call volumes, leading to a 16% stock decline this year.
• Bitcoin mining firm Bitdeer sold its entire $12 million Bitcoin treasury to invest in AI and high-performance computing infrastructure, converting mining facilities into AI data centers.
• VoltaGrid, a provider of microgrids for data centers, is considering an IPO or sale, benefiting from AI-driven data center demand, with Oracle planning over $1 billion annually for its power.
• Nvidia announced a partnership aimed at improving industrial cybersecurity.

AI Security Tool Causes Cybersecurity Stocks to Plummet

Cybersecurity stocks like CrowdStrike and Datadog fell sharply after AI startup Anthropic launched its new tool, Claude Code Security. This tool finds and fixes security flaws in open-source software. Investors worried that AI could reduce the need for existing cybersecurity solutions, causing a sell-off. However, some experts believe this reaction is an overreaction, as Claude Code Security does not handle real-time security tasks. Nvidia also announced a partnership to improve industrial cybersecurity.

AI Security Tool Sparks Major Stock Drop for Cybersecurity Companies

Major cybersecurity firms experienced significant stock losses on Monday following the launch of Anthropic's new AI security tool, Claude Code Security. Companies like CrowdStrike and Datadog dropped as much as 11% as investors grew concerned about AI's expanding abilities. The tool identifies security flaws in open-source software and offers fixes. Analyst Shrenik Kothari called the sell-off a panic-driven reaction, noting the tool's limitations in real-time security tasks. The market is reacting to fears that AI might replace current cybersecurity products.

Cybersecurity Stocks Fall After Anthropic's AI Tool Launch

Shares of cybersecurity companies, including CrowdStrike and Datadog, fell significantly after AI startup Anthropic released its new tool, Claude Code Security. This tool is designed to find and fix high-severity vulnerabilities in open-source software. The stock drops, with CrowdStrike and Datadog falling around 11%, reflect market fears about AI's growing capabilities. Analyst Shrenik Kothari described the sell-off as a panic-driven reaction. Claude Code Security does not perform real-time security tasks, leading some to believe the market reaction is an overreaction.

Basis Secures $100 Million for AI in Accounting

The accounting-focused AI startup Basis announced it has raised $100 million in a Series B funding round. This new funding will help the company expand its AI capabilities in accounting services. Basis believes AI will create a greater need for accounting, not less, to handle increased complexity and scale. Their AI agents work autonomously to assist accountants with critical decisions and tasks. Recent research shows AI helps accountants work more efficiently and improve job manageability.

AI Accounting Startup Basis Reaches $1.15 Billion Valuation

Basis, an AI startup focused on accounting, has achieved unicorn status by raising $100 million at a $1.15 billion valuation. The funding round was led by Accel, with participation from GV and existing investors. Founded in 2023, Basis uses AI agents to help accounting firms with tasks like financial statements and tax returns. CEO Matt Harpe stated the goal is to address the shortage of accountants and allow them to focus on higher-level strategic work. The company plans to expand its customer base and enhance its tax and audit capabilities.

Teleperformance Faces Increased Short Selling Amid AI Concerns

Call-center operator Teleperformance is experiencing a rise in short selling as investors bet against the company due to fears about AI's impact. Short interest has increased significantly, well above the average for European technology-services companies. Teleperformance's stock has declined 16% this year, and analysts are watching closely to see if the company can demonstrate that AI is helping improve profitability by cutting costs. The company previously warned that up to 30% of its volumes might become AI-automated.

Bitcoin Miner Bitdeer Sells All Holdings to Fund AI Infrastructure

Bitcoin mining firm Bitdeer has sold its entire Bitcoin treasury, totaling approximately $12 million, to invest in AI and high-performance computing infrastructure. This move signals a shift from traditional miner strategies of holding Bitcoin to focusing on data center growth. The company produced 189.8 BTC and sold it all, resulting in a net decrease in its Bitcoin holdings. Bitdeer is acquiring land for data centers and converting some mining facilities into AI data centers, supported by recent convertible notes and equity raises.

S&P 500 Rebounds as Traders Assess AI Slump Fallout

US stocks rose on Tuesday, with the S&P 500 Index gaining 0.6% as traders evaluated the impact of recent AI-related market swings. The rebound followed a significant drop on Monday, often referred to as the AI 'scare trade.' Anthropic's statement about its Claude AI integrating with existing systems rather than displacing them helped ease market concerns. Software stocks, which were heavily impacted, showed signs of recovery. Companies like Workday, Salesforce, and Snowflake are set to release earnings this week.

VoltaGrid Explores IPO or Sale Amid AI Growth

VoltaGrid, a company that provides gas-powered microgrids for data centers, is considering going public or being sold to private equity firms. The company is benefiting from the rapid growth in data center demand driven by AI. Oracle plans to pay VoltaGrid over $1 billion annually for power at its new data centers. VoltaGrid's earnings are projected to significantly increase by 2028, reflecting its expanding role in supporting AI infrastructure.

CrowdStrike Defends Role Amid AI Security Tool Competition

CrowdStrike is addressing concerns about its market position following the launch of Anthropic's AI tool, Claude Code Security, which scans and fixes software vulnerabilities. The company emphasizes its continued relevance, arguing that AI-driven threats will increase the overall need for its security platform. Management believes customers still require integrated detection and response beyond what autonomous code tools offer. Investors are evaluating how AI tools will change the cybersecurity landscape and CrowdStrike's ability to remain central in security stacks.

Letter AI Raises $40 Million for Sales Software

Sales startup Letter AI has successfully raised $40 million in a Series B funding round, bringing its valuation into the hundreds of millions. The company uses AI to provide real-time, deal-specific guidance to sales teams. This funding follows a previous $10.6 million Series A round just four months ago, highlighting rapid revenue growth. Letter AI is also launching a new feature called Letter Compass, which offers personalized coaching and messaging suggestions during sales. The funds will be used to expand product development and grow the global team.

AI Blog Post Rattles Wall Street Amid Fear

A recent blog post discussing AI has caused significant reaction on Wall Street, raising questions about whether fear is amplifying market movements. The situation draws parallels to historical market crashes, where media played a key role in shaping sentiment. The article suggests that current market volatility might be influenced by narratives and investor psychology, similar to past events. It prompts a consideration of how information and sentiment shape financial markets, especially in the context of rapidly evolving technologies like AI.

Sources

• CrowdStrike, Datadog and other cybersecurity stocks slide after Anthropic's AI tool launch
• AI Security Tool Sparks Major Stock Drop for Cybersecurity Companies
• CrowdStrike, Datadog and other cybersecurity stocks slide after Anthropic’s AI tool launch
• Basis Raises $100 Million to Build Up AI in Accounting
• AI-for-Accounting Startup Basis Hits $1.15 Billion Valuation
• Bears Again Target Teleperformance, One of AI’s First Victims
• Bitcoin Miner With No Coins: Bitdeer Empties Treasury After $12M Sale to Finance AI
• S&P 500 Rises as Traders Assess Fallout From AI-Fueled Slump
• VoltaGrid Weighs Public Listing or Sale as It Rides the AI Wave
• CrowdStrike Reassesses Role As Claude Code Security Shifts AI Risk
• Pitch deck: Letter AI raises $40M, unveils new sales software feature
• Citrini Research’s blog post on AI just rattled Wall Street, is fear is feeding on itself?