SandboxAQ, a startup utilizing quantum computing techniques to create quantitative artificial intelligence models for businesses, announced it has secured $150 million in funding from new investors like Google, Nvidia, and BNP Paribas.
The investment has boosted SandboxAQ's Series E round to $450 million, with the startup now valued at $5.75 billion. This brings SandboxAQ's total funding to $950 million, with support from T. Rowe Price Associates and Breyer Capital.
The involvement of Google and Nvidia signifies a rising interest from tech giants in quantitative model development and their early investments in potential practical applications.
CEO Jack Hidary shared that SandboxAQ has demonstrated its ability to deliver on commitments to various clients, which attracted strategic investors impressed by these achievements.
Established as a spin-off from Google-parent Alphabet in 2022, SandboxAQ has developed Large Quantitative Models (LQMs) for processing extensive numerical data, conducting intricate calculations, and statistical analysis. These models, accessible through platforms like Google Cloud, hold promise for applications such as aiding drug discovery and creating advanced financial models.
Headquartered in Palo Alto with approximately 200 employees, SandboxAQ intends to use the new funding to expedite research and development initiatives and enhance collaborations with companies in sectors like biopharmaceuticals, chemicals, and energy.
Both Google and Nvidia have been intensifying their investments in quantum computing, which harness quantum mechanics to perform computations exceeding traditional computer capabilities. Nvidia, recognized for its chips driving generative AI advancements, is now emphasizing "physical AI."
Nvidia CEO Jensen Huang expressed optimism about the progress of practical quantum computing systems, noting accelerated advancements in the field as Nvidia establishes its quantum research lab.
Google's quantum computing advancements gained attention in December with the introduction of a new generation of quantum chips, resolving a significant challenge in the industry. In February, Google joined a $230 million funding initiative for QuEra Computing.