New leaders, new fund: Sequoia raises $7 billion to expand AI bets

Few venture firms are betting more aggressively on AI than Sequoia Capital, and it’s not slowing down.

The Silicon Valley stalwart rose to approx 7 billion dollars According to Bloomberg, for the new fund. Sequoia declined TechCrunch’s request for comment. The money will go toward what the firm calls an “expansion strategy” — a late-stage investment arm focused primarily on the U.S. and Europe — and it’s roughly double Sequoia’s last comparable fund, a $3.4 billion vehicle raised in 2022.

This growth in fund size reflects something bigger: In the age of AI, late-stage investing takes on a whole new meaning. Companies are now able to scale at speeds and costs unimaginable a decade ago, and the firms that support them must keep up.

The money speaks to where Sequoia sees the future: from the giants building the underlying technology to the startups launching it, AI is deeply embedded. The firm has backed two of the most prominent players in the AI ​​race — first OpenAI and more recently Anthropic — both of which will go public in 2026.

However, Sequoia isn’t just making moves for mainstream AI heavyweights. It has also placed bets on other buzzy startups Physical IntelligenceBay Area robotics startup and Factorybuilds AI agents for enterprise engineering teams.

The fundraising is also the first major capital raise under Sequoia’s new leadership, with Alfred Lin and Pat Grady currently serving as stewards of the 54-year-old firm.