The Silicon Valley institution has closed roughly $7 billion for its expansion strategy fund, nearly doubling its comparable 2022 vehicle. Alfred Lin and Pat Grady, who took over as co-stewards in November 2025, are making the raise their opening statement on the AI era.
Sequoia Capital has raised approximately $7 billion for a new fund, according to Bloomberg, in what will be the firm’s largest fundraise in this vehicle category and the first under a new leadership structure.
The money will go towards Sequoia’s “expansion strategy”, its late-stage investing arm focused on the US and Europe, nearly doubling the comparable $3.4 billion fund raised in 2022.
The scale of the raise reflects the structural shift that AI has brought to late-stage venture investing. The largest AI companies, OpenAI and Anthropic among them, are raising at a pace and scale that has no precedent in venture capital history, driven by the capital intensity of training frontier models and building the compute infrastructure to run them.
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Sequoia has backed both companies: it was an early investor in OpenAI, and in January 2026 joined an Anthropic round led by GIC and Coatue, breaking from the VC convention against backing competitors in the same sector.
Both companies are reportedly eyeing public listings in 2026, which would represent a significant liquidity event for Sequoia.
The new fund is the first fresh capital raise under Sequoia’s new co-stewards Alfred Lin and Pat Grady, who succeeded Roelof Botha as joint managing partners in November 2025 after Botha was removed in a surprise vote.
The leadership transition came during a period of significant internal turbulence, including the resignation in August 2025 of COO Sumaiya Balbale over the firm’s handling of posts by a senior partner, Matt Maguire, which drew criticism from founders and led more than 600 to sign an open letter asking Sequoia to adopt a zero-tolerance policy on hate speech.
Lin and Grady’s “stewards” title reflects a model established by Sequoia’s founder Don Valentine.
Beyond the foundational AI companies, Sequoia has placed bets on a range of AI-adjacent startups including Physical Intelligence, the San Francisco robotics company that raised $400 million in late 2024, and Factory, which builds AI agents for enterprise engineering workflows.
The firm’s US and European operations are now separate from Peak XV Partners, the India and Southeast Asia entity, and from HongShan, the formerly affiliated China-focused business, following a 2023 restructuring that completed in 2024. The $7 billion expansion strategy fund covers US and European investments only.
As of January 2025, Sequoia had approximately $56 billion in assets under management globally.
