IBMs Stock Crash Reignites Fears of A.I. Disruption in Software Sector

ImageAndrew here.There is a fascinating soap opera involving Big Law and the White House that has sprung into the open, thanks to The Times’s Michael Schmidt and Devlin Barrett.Early in President Trump’s second term, nine law firms struck peace deals brokered by Boris Epshteyn, one of Trump’s personal lawyers, which spared them from what they believed could be crippling executive orders in exchange for nearly $1 billion worth of free legal work.But those firms — including Paul Weiss, Kirkland & Ellis and Skadden — have now been issued federal subpoenas demanding their private communications.

The Justice Department is also seeking documents from four firms fighting the administration in court.Watch this space.Behind a historic sell-offTuesday was a bad day for IBM.Shares in Big Blue tumbled 25 percent for its worst trading day since at least 1968.

The company had previewed quarterly results that would fall well short of analyst expectations because of artificial intelligence.Now, the big question confronting older software and services companies like IBM is whether more rough times lie ahead as investor fears re-emerge over A.I.disruption of their industries, Niko Gallogly writes.IBM’s stock plunge dragged down shares in big software makers, including Workday, ServiceNow and Salesforce.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.

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