Fastly, Inc. (FSLY) plummeted 10.75% intraday on Tuesday, extending recent losses for the edge computing and cybersecurity provider.

The sharp decline follows concerns about disruptive AI technology in the cybersecurity space. AI company Anthropic recently released its latest AI model "Mythos," which has been reported to be capable of identifying and exploiting vulnerabilities in mainstream operating systems and web browsers. Subsequently, Anthropic partnered with Amazon, Apple, Microsoft, Cisco, and other tech giants to establish an industry consortium called "Project Glasswing," aimed at leveraging its AI model for vulnerability scanning and remediation of critical software infrastructure.

The market is concerned that the business model of traditional cybersecurity and edge computing service providers like Fastly may face disruption from these AI-driven initiatives. Fastly had already plunged over 20% earlier in the week when the news first broke, and selling pressure has persisted. Within the Internet Services & Infrastructure sector, notable divergence is evident, suggesting that capital confidence in traditional service providers remains fragile relative to some peers.