Anduril CEO on employee tender offer: We’re not going to have employees distracted by stock prices

LATEST COMMENTS FROM PRESIDENT ZELENSKY. GUYS, BACK OVER TO YOU. >> OKAY. THANK YOU. I WAS IN DURHAM, REMEMBER LAST YEAR FOR COVERING ARAMCO. THAT THEIR HEADQUARTERS THANK YOU. EAMON JAVERS STICKING WITH GEOPOLITICS AND DEFENSE CONTRACTOR ANDURIL ANNOUNCING A NEW LINE OF AFFORDABLE MISSILE INTERCEPTORS AND THE LAUNCH OF A NEW MULTIBILLION DOLLAR SHIPYARD IN MARYLAND, WHICH INCLUDES A NEARLY $3 BILLION INVESTMENT FROM THE U.S. NAVY. THIS, AS THE COMPANY ALLOWS EMPLOYEES TO SELL INSIDER SHARES OF THE COMPANY AS PART OF A TENDER OFFER THAT VALUES THE DEFENSE TECH FIRM AT NOW ROUGHLY $90 BILLION. LET'S BRING IN BRIAN CHIMP AND CO-FOUNDER AND CEO FIRST ON CNBC INTERVIEW. BRIAN WE'RE HAPPY TO HAVE YOU. THANK YOU FOR JOINING US. >> THANKS FOR HAVING ME ON. >> SO SO MUCH TO GET TO. YOU'RE AT THE CENTER OF A LOT OF STORIES RIGHT NOW. BUT FIRST, MAYBE ON THIS TENDER OFFER $90 BILLION IS AN ALMOST 50% INCREASE IN THE VALUATION FROM JUST FIVE MONTHS AGO IN MAY. WHAT'S THE STORY THERE. WHAT'S HAPPENING IN THE BUSINESS. >> WE'RE SEEING. >> JUST AN INCREDIBLE DEMAND ACROSS EVERYTHING WE'RE WORKING ON. AND THE BIGGEST STORY FOR US RIGHT NOW IS JUST THE SHEER VOLUME OF PRODUCTION RAMP THAT WE'RE SEEING. THIS IS ACROSS MUNITIONS WHERE THERE'S, YOU KNOW, CRITICAL NEEDS THAT THE US HAS WITH ALL THE ONGOING CONFLICTS, ALONG WITH ALL THE ALLIES. WE'RE SEEING THIS ON THE AUTONOMOUS SYSTEM. SO ACROSS THE BOARD, WE'RE JUST SEEING A MASSIVE DEMAND UPTAKE. AND, YOU KNOW, I THINK IT'S REFLECTIVE OF THE FACT THAT, YOU KNOW, WE BUILT THE RIGHT PRODUCTS FOR WHERE CONFLICT IS GOING AND WE'RE RESPONDING TO THE SIGNAL WE'RE GETTING FROM ALL OF OUR CUSTOMERS. >> I MEAN, IF THE BUSINESS IS WORTH THAT MUCH, WHY NOT JUST GO PUBLIC, LET THE BROADER INVESTING PUBLIC PARTICIPATE? >> THE THE REALITY IS FOR WHERE WE'RE BUILDING RIGHT NOW, THE BIGGEST RAMP IS LEANING INTO PRODUCTION, LEADING INTO INVENTORY, DOING ALL THE THINGS TO SUPPLY THE CAPABILITIES OUR WARFIGHTERS NEED AND THE PRIVATE MARKETS. RIGHT NOW, WE CAN GET THE CAPITAL WE NEED, WE CAN STAY FOCUSED, AND WE'RE NOT GOING TO HAVE OUR EMPLOYEES DISTRACTED BY STOCK PRICES. YOU KNOW, THE TENDER OFFER IS A WAY TO GET THEM THE LIQUIDITY THEY NEED EARLY INVESTORS, ALL THESE THINGS, AND WE'RE HAPPY TO DO IT. BUT NOW THIS ALLOWS US TO STAY REALLY FOCUSED ON WHAT WE NEED TO DO, WHICH IS A MASSIVE, UNPRECEDENTED RAMP IN DEFENSE PRODUCTION THAT WE NEED TO EXECUTE ON OVER THE NEXT COUPLE OF YEARS. >> ALL RIGHT, LET'S TALK ABOUT THAT. SO SO WHERE WHAT ARE YOU SEEING THE BIGGEST DEMAND FOR IN TERMS OF WHAT YOU'RE MAKING? >> SO RIGHT NOW, THE BIGGEST DEMAND WE'RE SEEING IS REALLY AROUND, YOU KNOW, KIND OF ALL OF THE STRIKE CAPABILITIES AS WELL AS, YOU KNOW, WHAT WE'VE LAUNCHED RECENTLY AROUND DEFENSIVE CAPABILITIES IN THE US HAS CONSUMED SOMETHING LIKE 1500 PATRIOT MISSILES IN THE IRAN CONFLICT. AND THE ABILITY TO PRODUCE AND SCALE THAT IS IS VERY, VERY HARD. YOU KNOW, LOCKHEED IS LEANING IN ON THIS. WE REALLY APPRECIATE ALL THE EFFORTS THEY'RE DOING. IT'S CRITICAL FOR THE NATION, AND WE THINK COMPETITION HERE IS A REALLY GOOD THING. WE'VE HAD TOO MANY OF THESE MONOPOLY PROGRAMS ON THE US SIDE, AND IT REMOVES THE LIKE THE INCENTIVE TO REALLY JUST BE ABLE TO BE RESPONSIVE AND PROVIDE THE WARFIGHTERS WITH WHAT WE NEED TO ACTUALLY DEFEND THE NATION. SO WE'RE REALLY EXCITED TO, TO GET INTO THIS AND BE ABLE TO SUPPLY CRITICAL CAPABILITIES. >> I FEEL LIKE I ALWAYS THOUGHT OF ANDURIL, AND I FEEL LIKE YOU GUYS PAINTED YOURSELVES AS A DISRUPTOR IN THE DEFENSE INDUSTRY FROM SOME OF THESE WELL-ESTABLISHED PLAYERS LIKE LOCKHEED OR NORTHROP GRUMMAN. BUT INCREASINGLY NOW YOU'RE DEPENDENT AND YOU'RE BECOMING A DIRECT CONTRACTOR YOURSELF. >> YEAH, I THINK WE'VE REACHED THE POINT WHERE, YOU KNOW, BECAUSE OF OUR SCALE, BECAUSE OF OUR TRACK RECORD OF DELIVERING ON WHAT WE SAY, WE'RE GETTING TRUSTED WITH BIGGER AND BIGGER PROGRAMS AND BIGGER AND BIGGER CAPABILITIES. WHEN YOU LOOK AT THE SHIPBUILDING WORK WE'RE DOING, THIS IS A MASSIVE INVESTMENT. YOU KNOW, THIS IS SOMETHING THAT IS, YOU KNOW, THE NUCLEAR SUBMARINES ARE THE MOST COMPLEX AND CRITICAL WEAPON SYSTEM THAT THE US HAS TO BE ABLE TO SUPPLY AND WORK ON. THAT AT SCALE IS AN INCREDIBLY LARGE AND HARD UNDERTAKING. WE'RE TAKING IT VERY, VERY SERIOUSLY. BUT I THINK THAT THE REASON THE NAVY CAME TO US TO WORK WITH US ON THIS IS THEY NEEDED NEW AND DIFFERENT APPROACHES OF HOW TO SOLVE THESE PROBLEMS, HOW NOVEL MANUFACTURING METHODS, NOVEL STRATEGIES FOR MANAGING THE SUPPLY CHAIN, AND COMPLEMENTING THE EXISTING INDUSTRY THAT'S HONESTLY DOING QUITE WELL AND SOLVING REALLY HARD PROBLEMS, BUT JUST NEEDS MORE CAPACITY TO SCALE. AND SO WE'VE JUST REACHED