Sequoia Capital is reportedly set to participate in a major funding round for Anthropic, the AI company behind Claude, according to the Financial Times. The move is drawing sharp attention across Silicon Valley because it challenges long-held venture capital norms. Sequoia is already an investor in OpenAI and Elon Musk’s xAI, and its reported backing of Anthropic suggests a willingness to support multiple front-runners in the fiercely competitive AI race rather than betting on a single champion.
The timing of Sequoia’s reported involvement is particularly striking in light of comments made last year by OpenAI CEO Sam Altman. While testifying under oath during OpenAI’s legal dispute with Elon Musk, Altman addressed speculation around restrictions placed on OpenAI’s 2024 funding round. He denied the existence of a blanket ban on investors backing rival AI companies but confirmed that those with continued access to OpenAI’s confidential information were warned that such access would be revoked “if they made non-passive investments in OpenAI’s competitors.” Altman described this as “industry standard” protection against the misuse of sensitive information.
According to the Financial Times, the Anthropic round is being led by Singapore sovereign fund GIC and US-based Coatue, each committing $1.5 billion. Anthropic is reportedly seeking to raise $25 billion or more at a valuation of around $350 billion—more than double its reported $170 billion valuation just four months ago. Earlier reports from The Wall Street Journal and Bloomberg had pegged the round closer to $10 billion. Microsoft and Nvidia are said to have committed up to $15 billion combined, with venture capital firms and other investors contributing an additional $10 billion or more.
Sequoia’s relationship with Sam Altman stretches back years. The firm backed Altman’s first startup, Loopt, after he dropped out of Stanford. Altman later served as a Sequoia “scout,” introducing the firm to Stripe, which became one of its most valuable investments. Sequoia’s current co-leader, Alfred Lin, has also maintained a close public rapport with Altman and voiced strong support during Altman’s brief removal from OpenAI in November 2023.
While Sequoia’s investment in xAI already blurred traditional conflict lines, it has often been viewed as part of the firm’s long-standing ties with Elon Musk rather than a direct competitive bet against OpenAI. Sequoia has backed several Musk-led ventures, including SpaceX, Neuralink, The Boring Company, and X.
The reported Anthropic investment appears especially notable given Sequoia’s past rigidity on conflicts. In 2020, the firm famously exited payments startup Finix—walking away from a $21 million investment—after concluding it competed with Stripe. Against that backdrop, Sequoia’s apparent willingness to back multiple AI leaders signals a significant evolution in how top-tier venture firms are approaching the generative AI era.
