Anthropic's restricted release of Claude Mythos AI model triggers software stock selloff amid growing concerns over AI-exposed vulnerabilities.

Anthropic limited access to its powerful Claude Mythos AI model to approximately 40 companies, including Microsoft and Google, due to discovery of thousands of cybersecurity vulnerabilities.

The restricted release revealed vulnerabilities in every major operating system and web browser, exposing weaknesses in legacy software systems.

U.S. software stocks declined sharply as investors fear AI models like Mythos pose a disruption threat to traditional software companies.

Michael O'Rourke of JonesTrading noted the model's power demonstrates both the weakness of current software and AI's rapid advancement over legacy systems.