Sequoia Capital is targeting approximately $10 billion for dedicated AI investments, representing the largest concentrated bet in the firm’s history since its founding in 1972. Under new co-stewards Alfred Lin and Pat Grady, the venture capital fund has reinvested in OpenAI at a $300 billion valuation and increased its stakes in Anthropic and xAI. Sequoia’s AI portfolio also extends to vertical applications, with holdings in Harvey (legal AI, $8 billion valuation) and OpenEvidence (healthcare AI, $6 billion valuation). This strategy marks a shift from the previous leadership’s cautious approach, as Lin and Grady already had personal track records of winning bets in the sector. For the limited partners in Sequoia’s funds, the $10 billion commitment represents an unprecedented concentration risk.
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