Anthropic AI Selloff Hits European Software Stocks

Anthropic’s release of an agentic AI tool for corporate legal teams on February 3, 2026, triggered a sharp selloff in European and Indian software and data stocks. The move intensified investor concerns that AI could disrupt revenue streams for established professional-services firms.

Market Impact and Stock Declines

The selloff began before the U.S. market opened, erasing $285 billion in market value across software, financial-services, and asset-management sectors. FTSE 100 companies RELX PLC, London Stock Exchange Group, and Experian PLC fell 12%, 8.1%, and 7.4%, respectively, on the same day. The decline spread across software, data analytics, advertising, financial services, professional services, and other business-to-business sectors. Indian IT exporters dropped 6% on February 4, following the global software sector weakness.

Anthropic’s Funding and Competitive Pressure

In January 2026, Anthropic raised its funding-round target from $10 billion to $20 billion, aiming for a post-financing valuation of $350 billion. The round was led by Singapore’s GIC and Coatue Management and included Sequoia Capital, Microsoft, and NVIDIA. Investors cited the product release and increased fundraising as evidence of growing competitive pressure from well-capitalized AI entrants. They fear that agentic AI could automate legal research, compliance, and analytics workflows, reducing demand for legacy software and data services.

Before the selloff, RELX, Experian, and London Stock Exchange Group had already declined about 37%, 34%, and 32% from their recent peaks, reflecting ongoing valuation pressure. The simultaneous product launch and funding increase highlight Anthropic’s accelerating capital deployment and competitive positioning against OpenAI, prompting investors to sharply revalue incumbent data-services and professional-services platforms.