Anduril CEO Warns AI and Defense Valuations Are Becoming Dangerously Overvalued, Says Company Isn't Rushing to IPO

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Anduril Industries is opting to stay private for now as CEO Brian Schimpf says soaring AI and defense company valuations make the current market an unfavorable environment for a public listing.

Anduril CEO Says Current AI Defense IPO Market Is Fueled by Hype

On Thursday, speaking with CNBC's Julia Boorstin at the Allen & Co. Sun Valley Conference, Schimpf said Anduril is focused on long-term shareholder returns rather than capitalizing on today's enthusiasm surrounding artificial intelligence and defense technology.

"We define a successful IPO as our investors got a good return three years from actually going out," Schimpf said. "A bad time to do that is in the middle of a hype cycle. So we're not in a rush to go out."

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His comments come as defense technology companies continue to attract investor interest amid rising military spending and growing demand for AI-powered defense systems.

CEO Questions Sky-High AI And Defense Valuations

Schimpf cautioned that many private companies are being priced on optimistic growth expectations rather than fundamentals.

"We're seeing crazy high valuations on the expectations of future growth," he said. "I'm not sure that the market is particularly rational on the pricing right now."

He added that some companies are "dangerously leading into overvalued territory in a way that could backfire."

The remarks are notable because Anduril itself has benefited from the AI investment boom. The defense startup doubled its valuation to $61 billion in May, making it one of the world's most valuable private technology companies.

The company develops autonomous drones, AI-powered weapons and other defense systems.

IPO Plans Remain On Hold

While Anduril founder Palmer Luckey has previously said the company "definitely" plans to go public eventually, no timeline has been announced.

Schimpf suggested waiting for a more balanced market could ultimately benefit investors, arguing that a strong IPO should deliver sustainable returns well beyond its debut rather than rely on short-term excitement driven by an AI-fueled market rally.

Tech IPO Market Cools Despite SpaceX Debut

Despite Space Exploration Technologies Corp's record IPO last month, the tech IPO market remains muted.

Shares of Elon Musk's space and AI company surged to $201.80 on their third trading day but have since dropped about 25%, trading just above their $150 debut price.

Meanwhile, OpenAI and Anthropic have confidentially filed for IPOs but have not set timelines. With valuations nearing $1 trillion, some investors are questioning whether public markets will support such lofty price tags.

Photo courtesy: Tada Images on Shutterstock.com

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