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

Few venture firms are investing more actively in AI than Sequoia Capital, and that’s not slowing down.

The Silicon Valley stalwart has raised about $7 billion for the new fund, according to Bloomberg. Sequoia declined TechCrunch’s request for comment. The funds will be used for what the company calls its “expansion strategy” – essentially a late-stage investment arm focused on the U.S. and Europe – and are nearly double the size of Sequoia’s last comparable fund, the $3.4 billion raised in 2022.

This growth in fund size reflects something larger. In other words, late-stage investing has taken on a whole new meaning in the age of AI. Businesses can now scale at speeds and costs unimaginable a decade ago, and those that support them must keep pace.

Money is a sign that Sequoia sees the future. It is deeply embedded in AI, from the giants building the underlying technology to the startups running it. The company originally backed two of the biggest names in the AI ​​race: OpenAI and, more recently, Anthropic. Both are reportedly aiming for a public listing in 2026. This is a development that could mean significant pay for the company.

But Sequoia isn’t just swinging for rudimentary AI heavyweights. It has also invested in other popular startups, including Physical Intelligence, a Bay Area robotics startup, and Factory, which builds AI agents for enterprise engineering teams.

The fund raising is also the first major capital raising under Sequoia’s new leadership, with Alfred Lin and Pat Grady now serving as co-managers of the 54-year-old company.