Sequoia to invest in Anthropic, breaking VC taboo on backing rivals: FT (techcrunch.com)

Sequoia Capital is making headlines by investing in AI startup Anthropic, known for its language model Claude, as part of a massive funding round to raise over $25 billion at an astonishing valuation of $350 billion. This decision marks a significant departure from traditional venture capital practices, where firms typically avoid backing competing companies. Sequoia is already invested in key players like OpenAI and Elon Musk's xAI, making this a notable shift, particularly as OpenAI CEO Sam Altman previously described restrictions on investor participation in rival firms as an "industry standard." The funding round, led by Singapore's GIC and U.S. investor Coatue, features massive commitments from Microsoft and Nvidia, contributing up to $15 billion. Sequoia’s pivot raises questions about its historical stance on conflicts of interest and signals the firm's evolving strategy in a rapidly changing AI landscape. Furthermore, the investment comes amid significant leadership changes at Sequoia and speculation about Anthropic's imminent IPO, emphasizing the shifting dynamics and competitive landscape in AI and machine learning industries.