Sequoia Capital is reportedly breaking a long-standing Silicon Valley taboo. The venture capital firm is joining a major funding round for Anthropic, the AI startup behind Claude, according to the Financial Times. This move is notable because Sequoia already has investments in OpenAI and Elon Musk's xAI.

The funding round is led by Singapore's GIC and U.S. investment firm, I. This investment signals a shift in how venture firms approach the competitive AI landscape. Traditionally, VCs avoided backing rival companies to maximize returns on a single winner.

The timing is particularly interesting. Last year, OpenAI CEO Sam Altman testified about potential restrictions on investors backing competitors. Altman stated that investors with access to OpenAI's confidential information would lose that access if they made non-passive investments in rivals. This was framed as standard protection against misuse of sensitive data.

Sequoia's investment in Anthropic suggests a potential re-evaluation of this industry norm. It remains to be seen how this will affect Sequoia's relationship with OpenAI and xAI. The move could trigger similar investments from other firms, further intensifying competition in the rapidly evolving AI sector. The implications for AI development and its societal impact are significant.