New artificial intelligence tools released by US-based AI company Anthropic triggered a sharp selloff across global software stocks, rattling investors worldwide. Analysts estimate that nearly $285 billion was wiped off the market capitalisation of software, legal-tech and financial services companies in a single trading session—equivalent to roughly ₹23.6 lakh crore in Indian currency.
The sudden market rout followed Anthropic’s launch of 11 open-source AI plugins for its platform Claude Cowork. One plugin in particular—a legal workflow automation tool—set off alarm bells, as it can automate tasks such as contract review, NDA triage, compliance checks and legal briefings at scale.
Stocks hit the hardest (approximate impact)
- Thomson Reuters: ~15% decline
- RELX (owner of LexisNexis): ~14% fall
- LegalZoom: down nearly 20%
- Nasdaq Composite: slipped ~1.4%
- Impact on India: Infosys ADRs fell ~5.5%, Wipro declined ~5%
(Percentages shown; total estimated value erosion: ₹23.6 lakh crore)
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What exactly did Anthropic release?
Claude Cowork is an agentic AI assistant—meaning it does more than generate responses. It can read files, organise folders, draft documents and complete multi-step tasks with user approval.
The newly launched plugins allow organisations to define how work is done—which data sources are used, what tools are accessed and which workflows are automated. These span multiple functions, including productivity, sales, marketing, finance and legal operations.
Why did markets panic?
Analysts say this was not just another AI feature update—it signalled control over entire workflows.
Until now, AI models were largely offered as APIs, enabling software companies to build products on top of them. By releasing ready-made vertical solutions, Anthropic has effectively positioned itself as a direct competitor to many of the platforms that previously relied on its technology.
This shift—from AI as a helper to AI as a potential replacement—spooked investors. Brokerage firm Jefferies described the selloff as a “SaaSpocalypse”, calling it a near-worst-case scenario for the SaaS sector.
What it means for the software industry
The fallout was not limited to legal tech: DocuSign (~11%), Salesforce (~7%), Adobe (~7%) and ServiceNow (~7%) also slid sharply.
AI startups face mounting pressure, especially those dependent on large model providers that could eventually compete with them.
Anthropic’s growth pace is accelerating: its developer-focused product Claude Code reportedly reached nearly $1 billion in annual recurring revenue within months. The company is said to be preparing a $20 billion fundraise at a valuation of about $350 billion (≈ ₹29 lakh crore).
Bottom line
The market shock made one thing clear: Anthropic did not need a breakthrough innovation to unsettle investors. Simply demonstrating what Claude is already capable of was enough.
AI is no longer just supporting software—it is increasingly absorbing entire business workflows. For investors and companies alike, the message is stark: the winners in the next phase of the tech cycle will be those that rapidly redesign themselves around AI, rather than treating it as an add-on.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
