Sequoia Capital Backs Anthropic in Record $25 Billion AI Round

Sequoia Capital, a top venture firm from Silicon Valley, is set to invest in Anthropic, the AI company that makes the Claude chatbot. This comes as part of a huge funding round aiming to raise up to $25 billion, which would value Anthropic at $350 billion. The deal brings together investors from around the world and marks a change in how venture firms handle bets on competing AI companies. Talks are moving fast, with a close expected soon.

Background

Anthropic started in 2021. Its founders came from OpenAI, another big name in AI. The company built Claude, a chatbot that businesses use for tasks like coding and data analysis. Claude stands out because Anthropic puts a lot of focus on making AI safe and reliable for companies and governments.

Over the past few years, Anthropic has raised billions from tech giants. Amazon and Google put in large sums early on. Microsoft and Nvidia have now committed up to $15 billion more in this round. These partnerships help Anthropic grow fast. Its revenue jumped from $1 billion a year ago to $10 billion by December. That kind of growth draws attention from all kinds of investors.

Sequoia has a long history in tech. It backed companies like Google, Apple, and Airbnb that changed whole industries. The firm also invests in other AI players. It has stakes in OpenAI and xAI, run by Elon Musk. For years, Sequoia stayed away from Anthropic. Its former leader, Roelof Botha, thought too much money was going to the same few AI companies. He stepped down in November. Now Pat Grady and Alfred Lin lead the firm. They see value in spreading bets across top AI teams.

Venture firms used to pick one company per field and stick with it. That avoided conflicts and focused resources. But AI money is so big now that rules are bending. Investors want a piece of every leader to avoid missing out.

Key Details

The funding round could top $25 billion. That makes it one of the largest ever for a startup. Anthropic's value would jump from $170 billion four months ago to $350 billion. GIC, Singapore's wealth fund, and Coatue, a US investment firm, plan to put in $1.5 billion each. Other venture funds and big players would add at least $10 billion more.

Investor Lineup

• Microsoft and Nvidia: Up to $15 billion combined.
• GIC and Coatue: $1.5 billion each.
• Sequoia Capital: A large but unspecified amount, its first in Anthropic.
• Others: More funds joining to hit the total.

Anthropic is still picking who gets in. The company hired the law firm Wilson Sonsini to prepare for an IPO. It is also talking to banks about going public later this year. That would line it up with OpenAI and SpaceX, both eyeing stock market listings.

"This round is so huge, it doesn’t even feel like venture investing anymore." – Person close to the deal

Claude powers workflows in engineering, finance, healthcare, and more. Businesses use it to automate tasks, boost productivity, and handle data. Demand keeps growing as companies weave AI into daily work.

What This Means

Sequoia's move shows venture firms are changing how they play in AI. Instead of one bet per sector, they back multiple frontrunners. OpenAI, xAI, and now Anthropic all get Sequoia money. Leaders at the firm believe these companies will head in different directions, creating space for all to win.

The $350 billion valuation prices in big future growth, not just today's sales. Investors bet on AI reshaping economies. Fields like software, education, and manufacturing will lean on tools like Claude. Sovereign funds like GIC join because they see AI as key to long-term growth.

This round fuels Anthropic's plans. More cash means hiring top talent, building better models, and expanding worldwide. It also heats up the AI race. Companies push harder to innovate as money pours in.

For Silicon Valley, the deal breaks old habits. Firms once shunned rivals to keep focus. Now, with AI valuations soaring, they chase every opportunity. That could lead to more overlap and tougher choices down the line.

Anthropic's safety focus draws trust from regulators and big customers. As AI spreads, that edge matters. Enterprises want tools they can rely on without big risks.

The IPO prep signals maturity. Going public would let Anthropic raise even more and spread ownership wider. It fits a pattern where AI pioneers shift from private funding to stock markets.

Global investors pile in because AI touches every industry. Finance uses it for trading, healthcare for diagnostics, and governments for planning. This funding locks in Anthropic's spot at the center.

Venture shifts like this reshape funding flows. Money heads to proven leaders, even at high prices. That sustains innovation but raises questions about sustainability if growth slows.

Anthropic's path shows how fast AI startups scale. From startup to $350 billion in five years is rare. It sets a bar for others and pulls more capital into the field.