The moat is being rewritten by the underlying code. In February Anthropic claimed that Claude Code could modernize the ancient COBOL language, which directly threatened the survival foundation of IBM mainframes. Banks and insurers around the world rely heavily on hosts for mega-transactions, and if AI can easily refactor code, the cost of conversion for companies getting out of IBM systems will be dramatically reduced. The budget exclusion faced by AI hardware will persist long as the arms race does not end.
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