US venture capital firm Sequoia Capital is reportedly planning to invest in Claude-maker Anthropic as part of a fundraising effort that could reach “tens of billions of dollars”, the Financial Times reported.

The round is being led by Singapore sovereign wealth fund GIC and US investor Coatue, which have each committed $1.5bn, the newspaper wrote, citing sources with direct knowledge of the discussions.

Anthropic aims to raise $25bn or more, valuing the company at $350bn, which would more than double its valuation from four months ago. The report added that Microsoft and Nvidia have pledged up to $15bn between them, with other venture capital firms and investors expected to contribute further funding.

Talks on the fundraising remain ongoing and the final total may change, according to the publication. The company has not yet confirmed which investors will take part, but the report said the round is expected to close in the coming weeks.

The Financial Times said Sequoia’s participation follows a leadership transition at the venture capital firm last year, when Pat Grady and Alfred Lin became co-leaders after Roelof Botha left. The report said Botha had been cautious about concentrating investments in highly valued start-ups, arguing that the approach did not necessarily produce successful companies.

Sequoia has previously backed companies including Google, Apple, Stripe, and Airbnb, and it holds stakes in OpenAI and xAI, both competitors to Anthropic. The report said this reflects a broader shift among venture firms towards supporting multiple rivals in the AI sector.

The report citing an insider, said that the scale of the Anthropic deal resembles a stock investment rather than traditional venture capital backing.

Anthropic is known for its Claude chatbot and for developing AI tools for software engineers.

The report said Anthropic has also been preparing for a possible initial public offering (IPO), potentially this year. The company has engaged Wilson Sonsini for legal work and has held talks with banks about a listing.

Earlier this month, Elon Musk’s AI venture xAI raised $20bn in a Series E funding round, surpassing its original target of $15bn. This capital will enhance AI model development and computing infrastructure.

Notable participants in xAI’s financing include Valor Equity Partners, StepStone Group, Fidelity Management & Research Company, and Qatar Investment Authority, with Nvidia and Cisco Investments joining as strategic partners.