IBM shares plunged over 13% after AI startup Anthropic announced a tool to modernize COBOL, a key IBM programming language.

Elon Musk's AI venture, xAI, reportedly delayed a Grok chatbot update due to dissatisfaction with its knowledge of 'Baldur's Gate 3'. Musk is now prioritizing gaming expertise, even assembling a 'war room' to enhance Grok's understanding of titles like 'League of Legends'.

IBM still profits from mainframes running decades-old COBOL systems. Anthropic says AI can migrate that software elsewhere.

International Business Machines Corp. shares had their worst day in more than 25 years on Monday, after AI startup Anthropic PBC said its Claude Code tool can help modernize Cobol, a dated programming language that’s run on IBM computers.

IBM shares slumped on Monday, February 23, 2026, after Anthropic said its AI could speed up COBOL modernization. The stock fell about 13%, marking IBM’s sharpes

Feb 23 (Reuters) - Shares of International Business Machines recorded their steepest daily drop in more than 25 years on Monday, after AI startup Anthropic said its Claude Code tool could be used to modernize a programming language run on IBM systems.

Following the recent selloff, IBM’s valuation has become more compressed, according to analysts. The stock now trades at roughly 18 times projected 2026 earnings and about 16 times this year’s free cash flow, levels that some investors view as more attractive relative to historical averages.