Sequoia Capital is preparing to join a $25bn funding round for AI developer Anthropic, which seeks a $350bn valuation, according to the Financial Times. Sovereign wealth fund GIC and Coatue Management are expected to commit $1.5bn each, joining a massive capital raise for AI infrastructure. Discussions are ongoing and final terms could shift.

The deal would rank among the largest private capital raises ever, underscoring intense investor hunger for AI platforms. Anthropic, founded in 2021 by ex-OpenAI staff, develops the Claude chatbot and competes with OpenAI and Google's DeepMind. It needs capital to fund rapid expansion and soaring computing costs for advanced models.

Microsoft and Nvidia have separately pledged up to a combined $15bn in Anthropic, showing how Big Tech is backing external AI models. This round consolidates capital among a handful of companies seen as long-term infrastructure winners. The move pressures rivals and signals AI's capital intensity is escalating quickly.