What is Anthropic's new Cloud Code that has ruined the game for IT companies and caused significant losses?
Since the AI company Anthropic launched a new tool called Cloud Code, shares of several major cybersecurity companies have seen a sharp decline. On the first day, this tool caused shares of IT companies worldwide to fall by up to 3%. This also affected Indian companies, with Infosys shares falling from ₹1,700 to ₹1,280. Here, we explain the tool and why Anthropic Cloud Code poses a significant threat to IT companies.
What is Cloud Code?
Cloud Code Security is an advanced AI tool designed to find security flaws in software code. According to Anthropic, this tool scans the entire codebase, identifies potential vulnerabilities, and suggests precise patches to fix them. Importantly, these suggestions are then submitted for human review for final decision. The company believes this will enable development teams to implement security improvements quickly and reliably. This tool specifically focuses on flaws that traditional scanners often miss.
Why is this AI different from traditional tools?
While typical static analysis tools search for vulnerabilities based on predetermined patterns, Cloud Code Security attempts to understand code like a human security researcher. It traces data flows, understands interactions between different software components, and detects complex flaws related to business logic. Anthropic says this approach significantly overcomes the limitations of rule-based tools. It can even uncover bugs that may have been hidden for years, and it does so in a very short time.
Multi-stage verification reduces false positives.
According to the company, not all findings from Cloud Code Security reach the user directly. The AI first re-examines its findings and attempts to prove or disprove them. This multi-stage verification process aims to reduce false alerts or false positives. Only then are the results sent to human analysts. The tool also rates each vulnerability based on severity so teams can focus on the most important fixes first.
Cybersecurity stocks fall after launch
The announcement of Cloud Code Security is also having an impact on the market. Reports indicate that shares of several major cybersecurity companies have fallen, losing billions of dollars in value. Companies like CrowdStrike, Okta, Cloudflare, SailPoint, and Zscaler are affected. Experts believe investors fear that AI-based security tools could challenge traditional cybersecurity business models in the future. However, the long-term impact of this impact is not yet clear.
For which users is the new tool available?
Anthropic has currently released Cloud Code Security as a limited research preview. According to the company, this feature is currently available only to Enterprise and Team customers. There is no official timeline for its rollout to general users. The company says it will further refine the feature based on real-world user experience. In the coming times, this tool can bring a big change in the developer ecosystem.
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