rotative
wired ai · June 1, 2026

Is Anthropic's IPO doomed by its own ethics

anthropic filed for an ipo to fund its $965b valuation, but its refusal to let the military use its ai models has sparked a sanctions battle that could cost billions.

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anthropic confidentially submitted paperwork to us regulators for an ipo that could rival the largest ever, aiming to secure capital for expensive ai infrastructure. the company reported $47b in annualized revenue but remains unprofitable due to high cloud compute and staffing costs. this financial push collides with a major political risk: former defense secretary pete hegseth sanctioned anthropic, barring its claude models from federal agencies over ethical resistance to weapons deployment. the company is suing to overturn these sanctions, arguing its safety stance shouldn't preclude government work, setting up a high-stakes test of whether ai safety principles can survive public market demands.

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