Sequoia Capital is preparing to invest in Anthropic, the artificial intelligence company behind the Claude chatbot, in a move that challenges long-standing venture capital norms, according to a report by the Financial Times.

The decision is drawing attention across Silicon Valley because Sequoia already holds stakes in other leading AI players, including OpenAI and Elon Musk’s xAI—an uncommon strategy in an industry that traditionally avoids funding direct competitors.

The investment is particularly notable in light of previous comments by OpenAI chief executive Sam Altman, who acknowledged last year that investors with access to OpenAI’s confidential information could lose that access if they made non-passive investments in rival firms.

While Altman described such safeguards as industry standard, Sequoia’s reported participation in Anthropic’s funding round suggests a growing willingness among top venture firms to rethink conflict boundaries as competition in AI intensifies.

The Financial Times reported that the latest funding round is being led by Singapore’s sovereign wealth fund GIC and U.S.-based investor Coatue, each contributing about $1.5 billion.

Anthropic is reportedly seeking to raise at least $25 billion at a valuation of roughly $350 billion—more than double its valuation just four months ago.

Major technology players Microsoft and Nvidia are said to have committed up to $15 billion combined, with additional billions expected from venture capital firms and other investors.

Sequoia’s relationship with Altman stretches back nearly two decades, beginning with its early backing of his first startup, Loopt, and later through his role as a scout who introduced the firm to Stripe, now one of Sequoia’s most successful investments.

The firm’s evolving stance is also underscored by its close ties to Elon Musk, having invested across Musk-led ventures such as SpaceX, Neuralink, and X. These relationships appear to have softened Sequoia’s once rigid position on avoiding portfolio conflicts.

The reported Anthropic deal follows recent leadership changes at Sequoia, with Alfred Lin and Pat Grady taking the helm after a surprise internal shake-up.

Anthropic is also said to be laying the groundwork for a possible initial public offering as early as this year. Sequoia Capital has not yet commented on the reported investment.

Source: Techcrunch