Shares of several cybersecurity companies fell sharply after US-based AI firm Anthropic introduced a new feature capable of automatically detecting and helping fix software vulnerabilities. Following the announcement, stocks across the sector declined, with JFrog dropping around 24%, CrowdStrike down about 8%, Okta falling over 9%, and GitLab slipping more than 8%. Other cybersecurity players including Zscaler, Rubrik and Palo Alto Networks also saw notable losses.
Anthropic’s new tool, called Claude Code Security, is integrated into its Claude Code platform and is currently available in a limited research preview. The company said the feature can scan codebases, identify potential security flaws and recommend targeted patches for human review, helping teams address issues that traditional security methods may overlook.
The tool is designed to support developers and security teams in responding to emerging AI-driven threats while strengthening software protection. Anthropic noted that the early rollout to enterprise customers and open-source maintainers will help refine the technology before wider deployment.
The market reaction reflects rising investor concern that AI-powered coding and automation tools could disrupt traditional cybersecurity and software businesses, potentially affecting growth prospects and profit margins across the sector.
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