Home topics news News News Anthropic’s automation sparks rethink on software valuations and recurring revenue models Yajush Gupta February 5, 2026 When AI can replicate premium software tasks in seconds, what happens to recurring revenue? What’s happening: A new AI automation tool from Anthropic sparked a $285 billion rout in stocks across the software, financial services and asset management sectors as investors raced to dump shares with even the slightest exposure. The selloff began before US markets opened on Tuesday and continued into Wednesday. Why this matters: Markets are reassessing whether software businesses built around information resale and process automation retain meaningful value when AI systems can deliver comparable results instantly. The software sector is experiencing a real-time valuation reset as investors recalibrate what businesses can charge in an era of AI automation, according to the chief executive of one of the world’s largest independent financial advisory organisations. A new AI automation tool from Anthropic sparked a $285 billion rout in stocks across the software, financial services and asset management sectors on Tuesday as investors raced to dump shares with even the slightest exposure. A Goldman Sachs basket of US software stocks sank 6%, its biggest one-day decline since April’s tariff-fueled selloff, while an index of financial services firms tumbled almost 7%. Nigel Green, chief executive of deVere Group, argues the selloff reflects a fundamental shift in market thinking about software valuations rather than fear of technological change. Economics, not fear “The selloff is not about fear of AI, it’s