IBM CEO's statement that wiped away $70 bn has added millions for cybersecurity firm
IBM shares fell significantly after CEO Arvind Krishna cited concerns over AI models like Mythos for causing companies to pause technology spending. Conversely, cybersecurity stocks rallied as investors anticipate increased demand for digital protection in the evolving AI landscape.
Why it matters
This highlights a major market shift where AI-driven uncertainty is causing corporate budget reallocations, impacting both legacy tech giants and the cybersecurity sector.
IBM CEO Arvind Krishna said growing concerns over advanced AI models such as Anthropic's Mythos are prompting companies to pause technology deals and rethink how much they need to spend on cybersecurity. His comments came as IBM released preliminary second-quarter results that missed Wall Street expectations, sending the company's shares down as much as 26% and wiping out nearly $70 billion in market value. At the same time, cybersecurity stocks surged, as investors bet businesses would increase spending on cyber protection in response to the rapidly evolving AI landscape.IBM CEO says Mythos AI is making businesses rethink cybersecurity budgetsSpeaking to CNBC, Aravind Krishna said some large customer deals were delayed toward the end of the quarter as companies reassessed their spending priorities. “Mythos is making people pause to say, wait, how much do I need to spend on cyber?
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