tech
January 20, 2026
Sequoia to invest in Anthropic, breaking VC taboo on backing rivals: FT
Venture capital firms have historically avoided backing competing companies in the same sector, preferring to place their bets on a single winner. Yet here's Sequoia, already invested in both OpenAI and Elon Musk's xAI, now throwing its weight behind Anthropic, too.
TL;DR
- Sequoia Capital is reportedly investing in AI startup Anthropic.
- This investment is unusual as Sequoia is already invested in competitors OpenAI and xAI.
- OpenAI CEO Sam Altman previously stated that non-passive investments in rivals could lead to termination of access to confidential information.
- Anthropic aims to raise $25 billion or more at a $350 billion valuation.
- Microsoft and Nvidia have committed up to $15 billion combined to Anthropic's funding round.
- Sequoia has deep historical ties with Sam Altman and Elon Musk.
- Sequoia previously forfeited a $21 million investment in Finix due to a conflict of interest with Stripe.
- The reported investment follows leadership changes at Sequoia.
- Anthropic is reportedly preparing for a potential IPO this year.