Sequoia Breaks Ranks to Back Anthropic in $25 Bn Mega Round: Report

In a head-turning move, Sequoia Capital is set to join Anthropic’s cap table in a $25-billion funding round that will also see participation from Singapore’s GIC and US investor Coatue, the Financial Times reported. The investment would value the artificial intelligence startup at $350 billion—more than double its $170 billion valuation just four months ago.

Sequoia’s participation marks a notable shift from its traditional strategy. Venture capital firms typically avoid backing direct competitors, yet Sequoia already holds stakes in OpenAI and Elon Musk’s xAI, both rivals to Anthropic. Its investment in xAI, however, is widely seen less as a bet against OpenAI and more as an extension of its long-standing relationship with Musk. Sequoia also backed X when Musk acquired Twitter and rebranded the platform.

The $25 billion figure includes earlier commitments, with GIC and Coatue each planning to invest $1.5 billion. In late 2025, Microsoft and Nvidia pledged up to $15 billion to the company, while Anthropic also raised $13 billion in a Series F round in September last year, led by Fidelity, ICONIQ, and Lightspeed. The company plans to deploy the capital to develop more advanced AI systems and expand its technical infrastructure.

Anthropic reported sharp financial growth through 2025, with annualised revenue rising from $1 billion at the start of the year to $9 billion by December. The surge followed the success of its Claude chatbot, new tools for software developers, and the launch of specialised AI products for healthcare and financial services.

The company is also said to be preparing for a potential initial public offering, having consulted legal and financial advisers about a possible listing. 

The funding round is expected to close in the coming weeks, and would rank among the largest private investments ever made in the technology sector.

The investment also highlights how funding is concentrated around a handful of leading AI companies, as soaring computing costs and fierce competition push investors towards scale players with proven products and revenues.