Anthropic is making waves in the stock market again. After rattling SaaS players such as Infosys and TCS with Claude Cowork, the AI startup has now announced Claude Code Security. This update brings cybersecurity functionality to Claude, and it seems that traditional cybersecurity companies are taking a hit already.
According to Anthropic, Claude Code Security is an AI-powered tool designed to identify and help fix software vulnerabilities. And in theory, this may allow users to replace cybersecurity firms with such a tool, albeit it is still in a limited research preview.
Cybersecurity stocks tumble
Following the release of Claude Code Security, stocks of leading cybersecurity firms experienced sharp declines. Crowdstrike Holdings dropped as much as 6.5 per cent, Cloudflare fell over 6 per cent, Zscaler slid 3.5 per cent, SailPoint was down 6.8 per cent, and Okta lost 5.7 per cent.
The Global X Cybersecurity ETF, a fund that invests in companies that benefit from increased adoption of cybersecurity technology, also fell 3.8 per cent, extending its year-to-date slide to 14 per cent.
The iShares Expanded Tech-Software Sector ETF is down more than 23 per cent this year, marking its biggest quarterly decline since the 2008 financial crisis. Much of this selling has been spurred by new AI tools from companies such as Anthropic, OpenAI, and Alphabet Inc.
What does Claude Code Security do?
Anthropic described the new feature as one that “scans codebases for security vulnerabilities and suggests targeted software patches for human review.” The timing of the release coincides with major compliance cycles for enterprises, intensifying the spotlight on how AI tools could disrupt established security workflows.
Unlike traditional cybersecurity tools that typically flag vulnerabilities for later human review, Anthropic’s solution works differently. Claude Code Security provides suggested patches alongside its findings, compressing the entire vulnerability lifecycle—from discovery through remediation—into a single workflow.
Why Claude Code Security could be a game changer
Traditionally human engineers would still need to work out a solution to any threats or bugs. But Claude can now suggest the possible solution on its own. This may not only allow firms to save time but also huge costs, as they may not need to acquire the services of cybersecurity firms such as Crowdstrike in the future.
Though, the final call will still be made by a human. Anthropic states, “Nothing is applied without human approval: Claude Code Security identifies problems and suggests solutions, but developers always make the call.”
Using Claude Opus 4.6, Anthropic’s team recently discovered over 500 vulnerabilities in open-source codebases, many of which had gone undetected for years.
Claude Code may replace a full engineering team
Claude Code Security adds another layer to the AI’s functionality that now encompasses almost all aspects one needs to run an app – this includes the design, code review, and cybersecurity checks. According to one user on X, Claude was now capable of being “a full engineering team that never sleeps, never argues about tabs vs spaces, and costs $20/month.”
At a time when companies have already laid off over 1 lakh workers in the IT sector, this may pave the way for more layoffs across different firms.
