Sequoia’s $350 Billion Gamble: Why the VC Giant Is Now Beting on All Sides of the AI War

Silicon Valley’s most famous VC firm is betting against itself in a $350 billion gamble.

Sequoia Capital is reportedly joining a $25B+ funding round for Anthropic at a $350B valuation, per Financial Times. This follows a four-month valuation surge that doubled Anthropic’s worth, with Microsoft and Nvidia committing up to $15B combined. The move marks a stark shift from Sequoia’s 2020 exit from Finix after a conflict with Stripe, a company it had previously invested in.

Sam Altman’s 2023 congressional testimony highlighted the tension: “If they made non-passive investments in OpenAI’s competitors, access to OpenAI’s confidential info would be terminated,” he said under oath. Sequoia’s current strategy—investing in both OpenAI and Anthropic, while also backing xAI—reflects a broader pattern of hedging bets in the AI arms race.

Leadership changes at Sequoia, including Alfred Lin and Pat Grady’s takeover from Roelof Botha, may explain the pivot. The firm’s history of severing ties with Finix over competitive conflicts contrasts with its 2024 approach of funding multiple AI rivals simultaneously.