Sequoia Capital, the storied Silicon Valley venture firm, is poised to make its first major investment in Anthropic, the AI startup behind the Claude chatbot, joining a massive funding round led by Singapore’s GIC and Coatue Management. The deal, aiming to raise more than $25 billion at a staggering $350 billion valuation, marks a departure for Sequoia, which has backed rivals OpenAI and xAI. According to people familiar with the discussions, GIC and Coatue are each committing $1.5 billion, with Sequoia planning a significant check following its recent leadership changes.

The Financial Times first reported the move, noting that Sequoia is targeting a ‘major investment’ in Anthropic after a management overhaul that saw new partners take the helm ([Financial Times]). TechCrunch highlighted how this breaks a ‘VC taboo’ on backing direct competitors in the cutthroat AI sector, where Sequoia has deep ties to OpenAI through early investments ([TechCrunch]). CNBC confirmed Sequoia’s participation alongside GIC and Coatue, referencing Anthropic’s prior $15 billion commitments from Microsoft and Nvidia ([CNBC]).

Breaking Long-Standing VC Rivalries

SiliconANGLE detailed that Sequoia, an early OpenAI backer, is in talks for the mega-round, underscoring the blurring lines in AI funding where top firms increasingly spread bets across frontrunners ([SiliconANGLE]). Posts on X amplified the news: one investor noted, ‘Sequoia joining GIC/Coatue in $25B+ Anthropic round at $350B val. Wild,’ linking to the FT story ([X post by @ricburton]). Another observed, ‘Sequoia to invest in Anthropic despite OpenAI/xAI stakes—GIC & Coatue leading with $1.5B each,’ signaling market surprise ([X post by @thedealdirector]).

This convergence reflects the AI boom’s scale, where valuations eclipse those of tech giants. Bloomberg reported Sequoia’s ‘big investment’ plans, emphasizing the firm’s shift post-leadership refresh ([Bloomberg]). Reuters echoed the FT, specifying the $25 billion target and $350 billion valuation ([Reuters]). The round’s ambition surpasses Anthropic’s September 2025 raise of $13 billion at $183 billion post-money, led by Iconiq Capital.

Sequoia’s Strategic Pivot

Sequoia’s involvement stems from its post-2025 restructuring, including splitting into U.S. and non-U.S. arms and elevating partners like Grady Byers and Sonya Huang to focus on AI. Recent X activity from Sequoia underscores its AI push, with posts on funds targeting ‘outlier founders’ in the sector. Anthropic, founded by ex-OpenAI executives Dario and Daniela Amodei, has positioned Claude as a safety-focused alternative, securing Amazon and Google partnerships alongside Microsoft.

Investor reactions on X mix awe and skepticism. One post stated, ‘Sequoia Capital breaking its own rules: investing in Anthropic after OpenAI and xAI. GIC and Coatue leading the $25B round,’ highlighting the taboo breach ([X post by @dineshgovender]). TipRanks noted the $350 billion valuation as evidence of climbing AI multiples, with Sequoia joining despite portfolio overlaps ([TipRanks]).

Anthropic’s Funding Momentum

Anthropic’s trajectory accelerated in 2025 with commitments totaling tens of billions. Last year alone, Microsoft pledged up to $10 billion and Nvidia $5 billion in compute and cash. The current round, if completed, would value Anthropic higher than many public tech firms, fueled by Claude’s enterprise adoption in coding, analysis, and research. Economic Index reports from Anthropic highlight AI’s uneven labor impacts, bolstering its safety narrative.

GIC, Singapore’s sovereign wealth fund managing $770 billion, and Coatue, Philippe Laffont’s $50 billion tiger cub, bring global heft. Their $1.5 billion each signals state-level stakes in AI supremacy. Benzinga framed it as Sequoia joining after OpenAI and xAI bets, post-Anthropic’s prior rounds ([Benzinga]). Techzine Global called it Sequoia’s ‘first major investment’ despite rival holdings.

Implications for AI Capital Flows

For VCs, this deal erodes silos, as firms like Sequoia—$85 billion under management—diversify to capture AI’s trillions in potential. Risks loom: regulatory scrutiny on concentrated power, compute shortages, and model commoditization. Yet, with Claude 3.5 outperforming rivals in benchmarks, Anthropic’s moat in constitutional AI draws capital. Investing.com reiterated the GIC-Coatue lead ([Investing.com]).

Market whispers suggest closing soon, amid 2026’s funding frenzy. Sequoia’s move, post its AI Ascent keynote urging ‘maximum velocity,’ positions it centrally in the race. As one X post captured sentiment: the round’s scale is ‘wild,’ reshaping VC dynamics.

Broader Market Ripples