Anthropic, valued at $965 billion, has confidentially filed paperwork for an initial public offering (IPO), potentially opening the door to the largest ever in tech. The move comes as AI labs compete for funding to fuel their research.

The filing with US regulators is just the start; the exact amount of money sought and valuation have yet to be determined, and the timing depends on market conditions and other factors. Days after announcing a $65 billion fundraising round, Anthropic joins SpaceX in this race to the top, with both companies aiming for massive valuations.

Leading the charge is CEO Dario Amodei, whose company has already set itself apart by focusing heavily on business customers. Claude Code, one of its models, is considered best-in-class. However, Anthropic faces challenges, including sanctions from the US Department of Defense over ethical stances on AI use.

The IPO could bring about a wave of wealth in San Francisco, where Anthropic is based. Employees who have already cashed out before the IPO may sell larger stakes during this process, turning many paper millionaires and billionaires into real ones. But complications due to a public benefit corporation structure might delay or lower the valuation.