Anduril CEO Brian Schimpf has voiced concerns about the timing of initial public offerings (IPOs), particularly for companies in the booming defense technology sector. Speaking with CNBC's Julia Boorstin at the Allen & Co. Sun Valley Conference, Schimpf emphasized that Anduril is in no hurry to go public, stating, "We're not in a rush to go out." He elaborated that a "bad time to do that is in the middle of a hype cycle," warning that some current valuations are "crazy high."
The defense tech industry is currently experiencing a significant demand surge, partly driven by President Donald Trump's emphasis on military reindustrialization. The defense budget is projected to reach an unprecedented $1.5 trillion. Despite this robust sector, the broader market for tech IPOs remains somewhat subdued, even following SpaceX's high-profile but volatile public debut.
Companies like OpenAI and Anthropic, leaders in AI, have confidentially filed for IPOs but have not yet set timelines, with some investors questioning whether public markets will support their near-$1 trillion valuations. Anduril itself, a manufacturer of drones and AI-powered weaponry, saw its valuation double to $61 billion in May, positioning it as one of the most highly valued private tech firms. Schimpf indicated plans for aggressive investment in scaling defense systems for the U.S.
However, Schimpf cautioned against the prevailing market sentiment, noting, "We're seeing crazy high valuations on the expectations of future growth and all of those different things." He expressed skepticism about the current market's rationality in pricing. While Anduril founder Palmer Luckey has expressed a definitive aim to IPO, no target date has been set. Schimpf warned that many companies are "dangerously leading into overvalued territory in a way that could backfire."
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