New York-based investment firm XN is preparing to increase its exposure to Anthropic, signalling continued conviction in the AI company despite a sharp sell-off in technology stocks.

In a letter to investors sent on Thursday and seen by the Financial Times, founder Gaurav Kapadia said XN intended to be a “large participant” in buying additional Anthropic shares during the company's anticipated public listing.

XN, which first invested in Anthropic in 2025, has participated in three funding rounds. Its holding was valued at approximately $5.3bn at the time of the company's May fundraising, which valued the Claude developer at $965bn.

Anthropic had reportedly been targeting an IPO valuation of more than $1.5tn, with a listing potentially as early as this month. However, Thursday's broad-based sell-off in AI-linked equities could complicate those ambitions.

Despite the market volatility, Kapadia expressed confidence in Anthropic's financial position, highlighting its disciplined approach to capital allocation and balance sheet management amid rapid growth. He described the company as a potential “category-defining enduring” business.

XN's stance puts it alongside other major institutional investors seeking to capitalise on Anthropic's anticipated public debut. Coatue, led by Philippe Laffont, could see its stake exceed $13bn at the upper end of the expected IPO valuation range, while D1 Capital, founded by Dan Sundheim, is also among the company's early backers.

The growing exposure of hedge funds to private technology companies has generated significant returns for investors this year. D1, for example, was an early investor in SpaceX, with its position reportedly exceeding $20bn following the rocket company's public listing.