Sequoia Capital is breaking a long-standing Silicon Valley taboo. The venture capital giant is reportedly investing in Anthropic, the AI startup behind Claude. The Financial Times broke the news. This move is surprising because Sequoia already has investments in OpenAI and Elon Musk's xAI.

The funding round is led by Singapore's GIC and U.S. investor Coatue. The exact amount of Sequoia's investment is not yet public. The timing is notable. OpenAI CEO Sam Altman testified last year about investor restrictions. He stated that investors with access to OpenAI's confidential information would lose that access if they made non-passive investments in competitors.

This investment could signal a shift in how venture firms approach the AI landscape. It raises questions about information sharing and competitive advantage. It also suggests Sequoia sees significant potential in multiple AI models.

Venture capital firms typically avoid backing direct competitors. The strategy focuses on maximizing returns by supporting a single winner in a sector. Sequoia's move challenges this conventional wisdom.

The AI community will be watching closely. The investment's impact on OpenAI, Anthropic, and the broader AI race remains to be seen. Further details on the funding round are expected soon.