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Sequoia Backs AI Rivals: A VC Policy Shift?
19 Jan
Summary
- Sequoia Capital is reportedly investing in AI startup Anthropic.
- This move comes despite Sequoia's existing investments in OpenAI and xAI.
- Anthropic aims for a $350 billion valuation in its funding round.
Sequoia Capital is reportedly set to invest in Anthropic, the AI firm behind the Claude chatbot. This move is drawing attention as Sequoia already holds investments in OpenAI and Elon Musk's xAI, breaking traditional venture capital norms of avoiding backing direct competitors. The firm's historical stance on portfolio conflicts was notably strict, exemplified by its forfeiture of an investment in Finix due to competition with Stripe.
Anthropic is reportedly aiming for a valuation exceeding $350 billion in a funding round that also includes significant contributions from GIC and Coatue. This latest investment comes amid significant leadership changes at Sequoia. The firm's investment in Musk's ventures, including X and SpaceX, is often viewed as being rooted in deep personal ties rather than direct competition with OpenAI.
The AI landscape is rapidly evolving, with companies like Anthropic preparing for potential IPOs. This reported investment from Sequoia signals a potential shift in venture capital strategies, possibly prioritizing market access and relationships over strict adherence to non-compete investment policies in the high-stakes AI race.
