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Sequoia Capital is backing Anthropic in a major AI deal, marking a rare move that places it across competing artificial intelligence firms.

Sequoia Capital is reportedly joining a major funding round for Anthropic, the artificial intelligence company behind the Claude chatbot. The development was first reported by the Financial Times and is already drawing attention across Silicon Valley.

The move stands out because venture capital firms usually avoid investing in direct competitors within the same industry.

Sequoia, however, already holds stakes in OpenAI and Elon Musk’s xAI, making its reported backing of Anthropic an unusual shift.

The timing also raises eyebrows. Last year, OpenAI chief executive Sam Altman told a court that while investors were not fully banned from supporting rival firms, those with access to OpenAI’s confidential information could lose that access if they made active investments in competitors. He described the rule as standard practice in the industry.

According to the report, the funding round is being led by Singapore-based GIC and U.S. investment firm Coatue, each committing about $1.5 billion. 

Anthropic is said to be targeting a raise of $25 billion or more, with a valuation of roughly $350 billion. That figure would be more than double its estimated valuation just four months ago.

Earlier reports had placed the funding round at about $10 billion. Microsoft and Nvidia are now said to have committed up to $15 billion combined, while other venture firms and investors are expected to contribute at least another $10 billion.

Sequoia’s relationship with Sam Altman dates back years. The firm backed him during his early startup days and later worked closely with him through its network. 

Senior Sequoia partner Alfred Lin has also publicly expressed strong support for Altman in the past.

While Sequoia’s investment in Musk’s xAI already challenged traditional venture capital norms, that move was widely seen as part of the firm’s long-standing business ties with Musk, rather than a direct bet against OpenAI.

This latest decision appears even more striking given Sequoia’s history. In 2020, the firm walked away from a major investment in payments startup Finix after identifying a conflict with Stripe, one of its core portfolio companies. At the time, Sequoia gave up its board seat, shares, and information rights.

The reported Anthropic deal also follows recent leadership changes at Sequoia, where Alfred Lin and Pat Grady took over after an internal shake-up.

Anthropic is now said to be preparing for a possible initial public offering, which could happen as early as this year. Sequoia Capital has not yet publicly commented on the report.