The global technology landscape has reached a historic pivot point as of February 2025. Anthropic, the San Francisco-based AI firm, has achieved a staggering post-money valuation of $380 billion following a massive $30 billion Series G funding round. This single private entity is now significantly more valuable than the combined market capitalization of India’s five largest IT services giants. The collective value of Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, and Tech Mahindra currently hovers around $240 billion to $250 billion. The valuation gap reflects a brutal structural shift. In February 2026 alone, the Nifty IT index in India plummeted by over 20%, marking its sharpest decline since the 2008 global financial crisis. This sell-off was triggered by the release of Anthropic’s "Claude Code" and "Claude Cowork" tools, which investors fear will dismantle the traditional labor-arbitrage model. Anthropic’s growth is explosive. The company’s annualized revenue run rate has surged to $14 billion, growing tenfold annually for three consecutive years. Its latest AI agents can now automate complex enterprise workflows, software modernization, and high-level coding—tasks that previously required thousands of human engineers at Indian IT firms. The market impact has been immediate and severe for legacy players. Stocks like TCS and Infosys have faced intense pressure as Anthropic demonstrated that AI can modernize COBOL-based systems—the backbone of global banking—faster and cheaper than manual teams. While the "Big 5" of Indian IT are witnessing billions in market value evaporate, Anthropic is preparing for a potential initial public offering in the second half of 2026. The company recently initiated a secondary share sale for employees at a $350 billion valuation to provide liquidity ahead of its listing. Despite the volatility, the Indian sector is attempting a pivot. Domestic IT spending is projected to reach $176 billion by 2026, with a heavy focus on AI-enabled software and data centers. However, the current "SaaSpocalypse" suggests that the premium once held by service providers is rapidly migrating toward frontier AI research labs. For the first time, a five-year-old AI startup has dwarfed an entire national industry that took four decades to build. The market has sent a clear message: innovation and agentic AI are now the primary drivers of technology valuations, overshadowing traditional scale and headcount.