anthropic launches meta while amd expands its platform

Key Takeaways

• IBM's stock dropped over 13%, losing about $31 billion in market value, after Anthropic's Claude Code claimed to modernize COBOL, a language used in IBM mainframes.
• IBM countered that COBOL modernization is complex, involving more than just code translation, and highlighted its own AI tools like watsonX Code Assistant for Z mainframe.
• US tech stocks rebounded on Tuesday, partly due to a significant chip deal between Meta and AMD, following a Monday selloff driven by AI disruption fears.
• London-based AI startup Wayve, focused on autonomous vehicles, raised $1.2 billion, valuing it at $8.6 billion, with investments from Microsoft and Nvidia.
• Nvidia's upcoming earnings report is a critical test for the AI market, indicating the strength of AI-driven spending and assessing competition.
• The AI boom is reshaping venture capital, concentrating investments in leading AI and infrastructure companies and boosting vertical AI firms.
• Anthropic revised its safety policy, dropping a pledge to halt AI model training over unmitigated risks, citing the rapid pace of AI development.
• Cybersecurity startups are experiencing a surge in funding, with 70% of recent seed deals going to AI-focused ventures, driven by belief in AI's threat-combatting potential.
• Morgan Stanley views current AI-related market panic as a stock-picking opportunity, recommending "AI incumbents" and high-quality growth stocks.
• Investor Josh Brown suggests "AI-proof" retirement investments in companies with tangible products and consistent demand, such as McDonald's or Deere & Company.

IBM stock plummets after AI can modernize COBOL

IBM's stock experienced its biggest daily drop since 2000 after AI startup Anthropic announced its Claude Code tool can modernize COBOL. COBOL is a programming language used in many banking, insurance, and government systems on IBM mainframes. This news caused IBM shares to fall 13.2%, wiping out billions in market value. IBM stated that translating COBOL is only part of the modernization process, highlighting the complexity of data architecture and system integration. The company also pointed to its own AI initiatives like watsonX Code Assistant for Z mainframe.

IBM loses $31 billion as AI fears impact stock

IBM's stock dropped over 13% in one day, losing about $31 billion in market value due to fears that new AI tools could disrupt its business. AI startup Anthropic announced its Claude Code can help modernize COBOL code, a language used in IBM's mainframe systems. While IBM's stock has fallen about 22% this year, it has recovered somewhat. IBM argues that modernizing COBOL involves more than just code translation, pointing to its own AI efforts. Despite the recent drop, IBM's stock is still up significantly over the last three years.

Anthropic's AI claim rattles IBM investors

IBM investors reacted strongly to Anthropic's claim that its AI tool, Claude Code, can quickly modernize COBOL code. This caused IBM's stock to drop 13% on Monday, its largest single-day fall since October 2000. Investors worried this could hurt IBM's profitable mainframe services business. Anthropic stated AI can automate code analysis and implementation for COBOL modernization. IBM responded that code translation is only a small part of the complex modernization process. IBM's CEO previously highlighted strong revenue growth in its Z mainframes, partly due to its own AI tools.

Stocks rise as markets weigh AI impact and tariffs

Tech stocks recovered on Tuesday after a previous day's selloff, as markets considered the effects of artificial intelligence on tech companies and tariff uncertainties. Major US indices, led by the Nasdaq, gained ground. This rebound was partly due to a significant deal between Meta and chipmaker AMD, and a more positive view on AI's role in modernizing existing systems rather than replacing them. Markets also processed the Supreme Court's ruling on tariffs and President Trump's subsequent actions. Drugmaker Novo Nordisk saw its stock fall after announcing price cuts for its anti-obesity drugs.

Stocks rebound amid AI concerns and tariff news

US stocks recovered on Tuesday as investors assessed the impact of AI and new tariffs. Major indices bounced back after a significant drop on Monday, which was attributed to concerns about AI's disruptive potential, tariffs, and private credit issues. A deal between Meta and AMD for chip purchases boosted tech stocks. Investors remain cautious about AI's effect on corporate profits and employment, especially after a report highlighted potential economic risks from new AI tools. IBM's stock fell sharply due to Anthropic's claim about AI modernizing COBOL. Markets are also watching for clarity on trade deals following US tariff actions.

European AI startup Wayve raises $1.2 billion for driverless cars

London-based Wayve, an artificial intelligence startup focused on autonomous vehicles, has raised $1.2 billion, valuing the company at $8.6 billion. This funding round, which could reach $1.5 billion, is one of the largest for a European startup and highlights strong investor interest in AI. Wayve develops AI software that automakers can license, allowing them to concentrate on vehicle design and manufacturing. Their technology uses data from cameras and sensors for real-time driving decisions. The investment was led by Eclipse and Balderton Capital, with participation from major tech and auto companies like Microsoft, Nvidia, and Mercedes-Benz.

Ferrari stock poised for gains on new supercar

Ferrari's upcoming F80 supercar, priced at $3.8 million, is expected to significantly boost the company's earnings and potentially drive its stock price up by another 30%. The luxury automaker combines automotive excellence with high-end appeal, setting it apart from competitors. Ferrari's limited exposure to China's slowing economy also positions it favorably. Investors are optimistic about the car maker's ability to unite the auto and luxury markets, making rivals seem less appealing.

Morgan Stanley sees AI panic as stock picking opportunity

Morgan Stanley suggests that the current investor panic surrounding artificial intelligence presents opportunities for stock pickers. The firm advises investors to focus on 'AI incumbents,' strong growth companies, and high-quality stocks that are now available at lower prices due to market momentum. Strategists believe that the benefits of AI adoption will outweigh longer-term disruption fears for many companies. This approach aims to capitalize on the increasing adoption of AI technology while mitigating potential risks.

Nvidia earnings to test AI market sentiment

Nvidia's upcoming quarterly earnings report is a critical test for the artificial intelligence market, especially after recent tech stock selloffs. As the world's most valuable public company and a dominant supplier of AI chips (GPUs) and software (CUDA), Nvidia's results will show if AI-driven spending remains strong. Investors are scrutinizing potential competition from rivals and cloud giants seeking to reduce dependence on Nvidia. The company faces challenges from startups focused on inference chips, though Nvidia is also making strategic moves in this area. Nvidia's performance will signal the overall health of the AI boom.

AI boom reshapes venture market in 2026

The venture capital market in 2026 is being significantly reshaped by the accelerating AI boom, leading to capital concentration and compressed growth timelines. A few leading AI companies and infrastructure providers are attracting massive investments, while less established venture firms face a challenging fundraising environment. Vertical AI companies in sectors like law and healthcare are showing rapid revenue growth by integrating specialized models into complex business processes. This phase focuses on application-layer execution and workflow integration, creating durable advantages for companies embedding AI into high-value operations.

Anthropic revises safety pledge amid AI race

AI company Anthropic has changed its core safety policy, dropping a previous pledge to halt AI model training if safety risks couldn't be guaranteed in advance. Anthropic's chief science officer, Jared Kaplan, stated that stopping training wouldn't help and that unilateral commitments are difficult when competitors are advancing rapidly. The revised policy focuses on greater transparency about AI risks and matching competitors' safety efforts. This change comes as Anthropic experiences significant success with its Claude models and raises substantial new investments. The company aims to be pragmatic in response to evolving political and scientific realities in the AI field.

AI fuels surge in cybersecurity startup funding

Cybersecurity startups are experiencing a significant increase in investment, largely driven by the hype surrounding artificial intelligence. From October to December, 70% of over 1,000 seed-funding deals went to AI-focused cybersecurity ventures. This trend shows that AI capabilities are now a crucial factor for startups seeking funding in the competitive cybersecurity market. Investors believe AI can offer more effective and scalable solutions to combat evolving cyber threats, leading to increased innovation and capital in the sector.

Wall Street expert suggests AI-proof stocks for retirement

Veteran investor Josh Brown advises focusing on companies with tangible products and consistent demand, like commodity producers, fast-food chains, and industrial manufacturers, to protect retirement savings from AI disruption. He argues that AI cannot replace physical goods or essential services like burgers, oil extraction, or heavy equipment manufacturing. Companies like McDonald's, Coca-Cola, and Deere & Company are highlighted as resilient investments. This shift towards companies with proven cash generation contrasts with the recent focus on technology stocks, with international markets showing stronger performance than US equities.

Sources

• IBM posts steepest daily drop since 2000 after Anthropic says AI can modernize COBOL
• IBM Lost $31 Billion in 1 Day on AI Fears. Should You Buy the Dip?
• Anthropic’s claim that AI can quickly refactor COBOL rattles IBM investors
• Stocks bounce as traders assess AI fallout, tariffs
• Stocks bounce as traders assess AI fallout, tariffs
• Wayve, an A.I. Driverless Car Start-Up in Europe, Raises $1.2 Billion
• The Bull Case for Corpay and Which AI Trades Are Working Right Now
• AI Panic Is Opportunity for Stock Pickers, Morgan Stanley Says
• With markets jittery after weeks of tech selloffs, Nvidia’s earnings are the next big test for AI sentiment
• The AI Megacycle: Five Forces Reshaping The Venture Market In 2026
• Exclusive: Anthropic Drops Flagship Safety Pledge
• Cyber Startups Ride AI Wave to Funding Highs
• Wall Street legend reveals the AI-proof stocks to protect your 401(k) and IRA... and the logic is flawless