Sequoia Capital has reportedly joined a funding round for AI startup Anthropic, which created the Claude model, according to the Financial Times. This investment follows Sequoia’s existing stakes in OpenAI and xAI.
OpenAI CEO Sam Altman stated last year under oath that investors with ongoing access to OpenAI’s confidential information would face termination of that access if they made non-passive investments in OpenAI’s competitors. He described this restriction as an “industry standard” protection against the misuse of competitively sensitive information.
Anthropic, which develops the Claude model, is targeting a raise of $25 billion or more at a $350 billion valuation. This valuation marks an increase from its $170 billion valuation four months prior. Singapore’s GIC and U.S. investor Coatue are leading the round, each contributing $1.5 billion. Microsoft and Nvidia have committed up to $15 billion combined, with venture capitalists and other investors expected to provide an additional $10 billion or more. Earlier reports from The Wall Street Journal and Bloomberg had indicated a $10 billion target for the round.
Sequoia’s investment in xAI has been viewed as strengthening ties with Elon Musk, rather than solely as a bet against OpenAI. Sequoia has invested in X, SpaceX, The Boring Company, and Neuralink. Michael Moritz, a former Sequoia leader, was an early investor in Musk’s X.com, which became part of PayPal.
In 2020, Sequoia divested from payments company Finix, forfeiting its $21 million investment, board seat, information rights, and shares. The firm’s exit occurred after it concluded Finix competed with Stripe, another Sequoia portfolio company.
The reported investment in Anthropic follows recent leadership changes at Sequoia. Roelof Botha, the firm’s global steward, was succeeded by Alfred Lin and Pat Grady.
Anthropic is reportedly preparing for an initial public offering potentially this year.
