Anthropic just threw down the gauntlet with a confidential IPO filing that could crown it one of the largest tech debuts ever. The AI startup behind the Claude models is racing toward a valuation near $1 trillion following a colossal $65 billion funding round.

This round catapults Anthropic’s post-money valuation to $965 billion, edging past OpenAI’s last reported $852 billion. The company aims to use the fresh capital to scale up cloud computing, hire aggressively, and accelerate AI safety research.

Anthropic’s imminent IPO is part of an escalating showdown among AI heavyweights. OpenAI is expected to file its own public offering within months, while Elon Musk’s SpaceX, linked to xAI, targets a $1.75 trillion market debut in June. The trio battles for investor cash to fuel the compute-hungry AI arms race.

The stakes are immense. Training advanced AI models demands billions in data center costs and specialized chips. Anthropic reportedly spends $15 billion annually just on cloud infrastructure, underscoring the capital intensity of competing at AI’s frontier.

Anthropic’s corporate structure complicates the picture. It’s a public benefit corporation, answerable not only to shareholders but also a Long-Term Benefit Trust committee. This unique governance could slow the IPO timeline or depress the valuation.

Still, Anthropic has carved out a distinct niche by courting business customers and emphasizing ethical AI use. Its Claude Code model is widely regarded as best-in-class for code generation. But the company faces hurdles beyond market forces.

The U.S. government has sanctioned Anthropic, banning its AI models from military and federal agencies due to national security concerns. Anthropic resists government demands to deploy AI for weapons targeting or mass surveillance—stances that could cost billions in sales and spark ongoing legal battles.

Despite these risks, investor appetite remains voracious. Huge investment firms are lining up to back Anthropic and its rivals. Debt financing deals worth tens of billions, including custom AI chips, highlight the lengths investors go to secure a piece of the AI future.

Anthropic’s IPO could transform paper wealth into real billions for founders, employees, and early investors like Amazon and Skype co-founder Jaan Tallinn. The company’s Silicon Valley roots mean the local tech ecosystem stands to benefit too.

The AI IPO frenzy signals a broader shift in tech funding. Artificial intelligence has become the dominant theme for venture capital and public markets. Companies that master the next generation of AI could rewrite the rules of technology—and wealth creation—for decades.