Sequoia Capital has raised approximately $7bn for a new expansion fund, as the venture capital firm scales its late-stage investment strategy under new leadership, according to sources familiar with the matter cited by Bloomberg.

The fund, which is roughly double the size of its $3.4bn predecessor raised in 2022, will focus on backing large, mature companies across the US and Europe, with a particular emphasis on artificial intelligence.

The raise reflects intensifying competition among private capital firms to secure exposure to high-growth AI platforms, where the cost of scaling has surged due to increasing demand for computing infrastructure and data capabilities.

Sequoia has already built a significant presence in the sector, with investments in leading AI companies including OpenAI, Anthropic, and xAI. Several of these businesses are expected to pursue public listings in 2026, potentially generating substantial returns for early investors.

The fundraising marks a new phase for the firm following leadership changes, with Alfred Lin and Pat Grady taking on co-steward roles, alongside broader organisational adjustments and new investment hires.

In addition, the fund will also allocate capital to mature companies outside the AI ecosystem, reflecting a diversified approach to late-stage investing.

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