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Last week was nothing short of a nightmare for the Indian IT sector. Nearly ₹1.5 lakh crore (approximately $1.5 trillion) vanished from the market cap of the country's five largest IT companies in one fell swoop. It's worth noting that the cause of this massive devastation wasn't a major recession, but rather the American AI company, Anthropic. Anthropic's new product, Cloud Cowork, has sparked fear among investors worldwide. This company, with just 2,500 employees, has raised questions about the future of IT companies worldwide.

IT stocks crashed rapidly.
Although Anthropic launched Cloud Cowork on January 12th, it didn't have any impact on the stock market at the time. However, as soon as Anthropic announced approximately 11 business plug-ins to automate IT companies' work, investors in IT companies were struck with fear. This resulted in a sudden collapse of investor confidence, leading to a catastrophe in the stock market.

In the US, investors lost $1 trillion in a week, while in India, investors in the top five IT companies lost Rs 1.5 lakh crore in one stroke. Following the announcement of Cloud Cowork, shares of TCS and Infosys fell by up to 7 percent on February 5th. Many experts even began to say that even the stock market is now immune to the "bloody game" of AI.

What is Cloud Cowork?
Until now, we've used chatbots like ChatGPT or Gemini to ask questions or get reports written. However, the Cloud Cowork launched by Anthropic is far more advanced than these. While a chatbot provides information that you have to copy and paste, Cowork becomes a part of your computer system directly.

In simple terms, a chatbot is like a freelancer you hire, while Cowork becomes a junior employee in your office. Its various plug-ins completely automate a business's operations. These AI tools can automatically handle tasks like coding, marketing, legal, and accounting. This means that service companies that typically perform coding, marketing, and maintenance for an IT company are now completely out of business.

Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.