Investors were assessing on Wednesday whether a selloff in global software stocks this week had gone too far, as they weighed if businesses could survive an existential threat posed by AI. The answer: It's unclear and will lead to volatility. From a report: After a broad selloff on Tuesday that saw the S&P 500 software and services index fall nearly 4%, the sector slipped another 1% on Wednesday. While software stocks have been under pressure in recent months as AI has gone from being a tailwind for many of these companies to investors worrying about the disruption it will cause to some sectors, the latest selloff was triggered by a new legal tool from Anthropic's Claude large language model (LLM). The tool - a plug-in for Claude's agent for tasks across legal, sales, marketing and data analysis - underscored the push by LLMs into the so-called "application layer," where these firms are increasingly muscling into lucrative enterprise businesses for revenue they need to fund massive investments. If successful, investors worry, it could wreak havoc across a range of industries, from finance to law and coding.

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Anthropic said today that its AI assistant Claude will not carry advertising of any kind -- no sponsored links next to conversations, no advertiser influence on the model's responses, and no unsolicited third-party product placements -- calling Claude a "space to think" that should remain free of commercial interruption. The announcement comes days after Anthropic's chief rival, OpenAI, announced plans to bring ads to some of its ChatGPT offerings. Anthropic said its internal analysis of Claude conversations found that a significant share involve sensitive or deeply personal topics. An advertising-based model would also create incentives to optimize for engagement and time spent rather than usefulness, Anthropic said, noting that the most helpful AI interaction might be a short one that doesn't prompt further conversation. Anthropic generates revenue from enterprise contracts and paid subscriptions. The company said it is exploring agentic commerce -- Claude handling a purchase or booking on a user's behalf -- but stressed that all such interactions should be user-initiated, not advertiser-driven. Anthropic has also brought AI tools to educators in over 60 countries and said it may consider lower-cost subscription tiers and regional pricing.

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OpenAI's rivals are cutting into ChatGPT's lead. From a report: The top chatbot's market share fell from 69.1% to 45.3% between January 2025 and January 2026 among daily U.S. users of its mobile app. Gemini, in the same time period, rose from 14.7% to 25.1% and Grok rose from 1.6% to 15.2%. The data, obtained by Big Technology from mobile insights firm Apptopia, indicates the chatbot race has tightened meaningfully over the past year with Google's surge showing up in the numbers. Overall, the chatbot market increased 152% since last January, according to Apptopia, with ChatGPT exhibiting healthy download growth. On desktop and mobile web, a similar pattern appears, according to analytics firm Similarweb. Visits to ChatGPT went from 3.8 billion to 5.7 billion between January 2025 and January 2026, a 50% increase, while visits to Gemini went from 267.7 million to 2 billion, a 647% increase. ChatGPT is still far and away the leader in visits, but it has company in the race now.

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