Sequoia Capital is making up for lost time in AI.
Since Alfred Lin and Pat Grady took over the firm last November, Sequoia has announced about 20 AI-related investments. It's also now willing to pay up for deals it once considered too expensive.
In May, Sequoia added another $2.5 billion to Anthropic — the largest single investment in the firm's 54-year history. The initial discussion was for $1 billion; the firm eventually decided to go to $2.5 billion.
Around the same time, Sequoia raised $10 billion for its growth and expansion funds, the first round of fundraising completed under its new leadership.
Sequoia also recently led a $300 million round in AI chip company Etched at a post-money valuation of $10.3 billion. To win the deal, it brought more than 10 partners to meet the founding team.
The previous boss, Roelof Botha, was more cautious about AI's high valuations. As a result, Sequoia missed the chance to invest in Anthropic at a lower price and repeatedly passed on increasing its stake in OpenAI.
This pivot has a clear catch-up feel: Sequoia would rather accept higher valuations than risk missing out on top AI companies again.