Sequoia Capital Breaks VC Taboos, Joins $25B Funding Round for Anthropic at a Whopping $350B Valuation
Sequoia Capital is making waves by joining a monumental funding round for AI startup Anthropic, the brains behind the Claude chatbot. This news, reported on January 18-19, 2026, shatters traditional venture capital norms, considering Sequoia’s existing investments in rival AI companies OpenAI and Elon Musk’s xAI.
The funding round, spearheaded by Singapore’s sovereign wealth fund GIC and U.S. investor Coatue (each contributing a hefty $1.5 billion), has an ambitious goal of raising $25 billion or more at a staggering $350 billion valuation. This is a significant leap from Anthropic’s $170 billion valuation just four months prior. Tech giants Microsoft and Nvidia are said to have pledged up to $15 billion combined, with venture capital firms and other investors chipping in an additional $10 billion or more.
This extraordinary move signifies a paradigm shift in Silicon Valley’s investment landscape. Traditionally, firms have shied away from backing competing companies within the same sector. The colossal valuation and funding underscore the extreme capital demands of cutting-edge AI development. These labs require billions for computing power, talent acquisition, and safety engineering. Rumor has it that Anthropic is also gearing up for a potential IPO in 2026.
Source: TechCrunch