New leader, new fund: Sequoia raises $7 billion to expand AI investments

Few venture firms are betting as aggressively on AI as Sequoia Capital, and they’re not slowing down.

The Silicon Valley heavyweight has raised about $7 billion for the new fund, according to Bloomberg. Sequoia declined TechCrunch’s request for comment. The funding will go toward what the company calls its “expansion strategy,” a late-stage investment arm focused on the U.S. and Europe, and is nearly double the $3.4 billion Sequoia’s last comparable fund raised in 2022.

The increase in fund size reflects something bigger. In short, late-stage investing has taken on a whole new meaning in the AI ​​era. Businesses can now scale at speeds and costs that were unimaginable a decade ago, and the companies that support them need to keep up.

This funding signals a future for Sequoia that is deeply embedded in AI, from large companies developing the underlying technology to startups putting it to practical use. The company is behind two of the most prominent companies in the AI ​​race – first OpenAI and more recently Anthropic, both of which are reportedly aiming to go public in 2026. This development could mean a big payday for the company.

However, Sequoia doesn’t just back basic AI heavyweights. It’s also betting on other hot startups, including Bay Area robotics startup Physical Intelligence and Factory, which builds AI agents for enterprise engineering teams.

The financing is also the first major financing under Sequoia’s new management team, with Alfred Lin and Pat Grady now serving as co-executive directors of the 54-year-old company.