Sequoia Backs Claude's Anthropic, Vows to 'Stop Playing Favorites' Between AI Children

Sequoia Capital is reportedly investing in Anthropic, a move that breaks the traditional venture capital taboo of backing rival companies in the same sector. According to the Financial Times, Sequoia is joining a funding round for Anthropic, the AI startup behind the Claude platform. This decision is significant as venture capital firms have historically preferred to place their bets on a single winner in a given sector, avoiding investments in competing companies. The investment in Anthropic marks a shift in this approach, with Sequoia opting to back a company that operates in the same space as some of its existing portfolio companies. The move is likely to have implications for the AI sector, where competition is intense and investors are eager to back winners. The exact terms of the investment, including the amount and valuation, have not been disclosed, but the deal is expected to be a blockbuster funding round.