The market sell-off in cybersecurity stocks like CrowdStrike and Okta wasn't about Anthropic's new tool's direct features. It reflects a broader, rational repricing of all software valuations as investors grapple with the existential risk that AI could render any business model obsolete with terrifying speed.

For the first time, the high-multiple software industry faces a potential existential threat from AI. Even the possibility of disruption is enough to compress valuations, causing massive dispersion where indices look calm but underlying sectors are experiencing extreme rotation.

The "SaaSpocalypse" is evolving. Initially focused on speculative threats, the danger is now concrete. As seen with startup Altruist impacting Charles Schwab's stock, rising companies are winning business from incumbents *today* by shipping superior AI features, causing immediate financial consequences.

Market reactions to new AI models diverge sharply between the US and China. In the US, releases from giants like Anthropic or Gemini cause widespread software sell-offs due to disruption fears. In China, new models lift related sectors, as the market sees them as enablers for a less mature software industry with less to lose.

IBM's stock plunged 13% after an Anthropic blog post about an *existing* AI capability (COBOL modernization). This indicates investors are finally grappling with the long-term disruptive implications of AI on legacy businesses, reacting to the strategic threat itself rather than waiting for a specific new product launch.

The $830 billion sell-off in software stocks wasn't a reaction to AI's current capabilities, but to a shift in investor perception. New AI agents made a future "software apocalypse" plausible enough to alter present-day company valuations.

The recent software stock wipeout wasn't driven by bubble fears, but by a growing conviction that AI can disintermediate traditional SaaS products. A single Anthropic legal plugin triggered a massive sell-off, showing tangible AI applications are now seen as direct threats to established companies, not just hype.

Wall Street believes AI is 'eating' software, causing stocks for giants like Salesforce and Oracle to plummet. AI tools like Anthropic's Claude Code, which can create software from simple prompts, threaten to undercut the value proposition of traditional Software-as-a-Service (SaaS) companies by democratizing and simplifying software creation.

The battleground for AI startups is constantly shrinking like the map in Fortnite. Foundation models like Anthropic's Claude are aggressively absorbing features, turning what was a standalone product into a native capability overnight. This creates extreme existential risk for application-layer companies.