Sequoia Capital is reportedly preparing a significant investment in AI startup Anthropic, marking its first contribution to a funding round expected to raise tens of billions of dollars.



<h2>Sequoia Could Join $25 Billion Anthropic Round</h2>



The renowned venture capital firm is joining a funding round led by GIC, the Singaporean sovereign wealth fund, and US investor Coatue. Each of these entities is contributing $1.5 billion, reported the Financial Times on Sunday. 



The funding round is expected to bring in over $25 billion, setting Anthropic's valuation at $350 billion, more than twice its $170 billion valuation from just four months ago. Tech giants Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA) have pledged to invest up to $15 billion in total into the AI startup, with other investors contributing an additional $10 billion or more.



Sequoia’s previous investments in AI include OpenAI and Elon Musk‘s xAI. Notably, the decision to invest in Anthropic comes after the departure of Roelof Botha, who was cautious about the high concentration of VC investment in a few highly valued startups.



<h2>Anthropic Eyes Over 2026 IPO </h2>



Anthropic’s valuation has been a topic of interest. The startup is reportedly planning an IPO in 2026, while also negotiating a funding round that could push its valuation above $300 billion. The company’s projected IPO and its valuation have been viewed as a potential indicator of the AI market’s true value. 



Despite the concerns about a potential bubble, Anthropic is targeting $20 billion–$26 billion in annual revenue in 2026. Anthropic is shifting focus from experimental use to developer tools and Claude-powered business workflows, aiming to convert hype into recurring, long-term revenue instead of short-term, churn-prone usage.



Meanwhile, November reports suggested that Google (NASDAQ:GOOGL) (NASDAQ:GOOG) was planning a major investment in Anthropic, potentially valuing it over $350 billion. The deal, still under negotiation, could take the form of added cloud services, a convertible note, or a priced funding round early 2026. 



Image via Shutterstock



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Sequoia Capital is set to invest in AI startup Anthropic, joining a funding round expected to raise over $25 billion, led by GIC and Coatue. This investment will increase Anthropic's valuation to $350 billion, more than double its previous valuation. Microsoft and Nvidia are also contributing significantly. Anthropic plans an IPO in 2026, targeting $20–26 billion in annual revenue, shifting focus to developer tools and business workflows. Google is also negotiating a major investment in Anthropic, potentially further increasing its valuation.

- Sequoia Capital is set to invest in Anthropic's funding round, which is projected to raise over $25 billion and increase the startup's valuation to $350 billion.  
- The round, led by GIC and Coatue, also includes significant investments from Microsoft and Nvidia, contributing a total of up to $15 billion, with additional investments expected to exceed $10 billion.  
- Anthropic aims for a 2026 IPO, targeting annual revenues between $20 billion and $26 billion, focusing on developing business tools and workflows to ensure sustainable growth.

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Sequoia Capital To Join $25 Billion Anthropic Funding After OpenAI And xAI: Report