Sequoia Capital is breaking a major Silicon Valley taboo. The venture capital firm is reportedly investing in Anthropic, the AI startup behind Claude. The Financial Times broke the news. This is surprising because Sequoia already backs 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 move signals a potential shift in how venture firms approach the rapidly evolving AI landscape.

The investment raises questions about access to confidential information. OpenAI CEO Sam Altman testified last year about restrictions on investors backing rivals. He stated that investors with access to OpenAI's sensitive data would lose that access if they invested in competitors. It is unclear how this will affect Sequoia's relationship with OpenAI.

Venture capital firms typically avoid funding competing companies. They prefer to concentrate their resources on a single potential winner. Sequoia's investment suggests a belief that multiple AI models and companies can thrive.

The AI industry is watching closely. This investment could pave the way for more diverse funding strategies. It remains to be seen how OpenAI and xAI will respond. The development underscores the intense competition in the race to develop advanced AI.