SandboxAQ Raises $450 Million in Series E, Backed by Google and Nvidia for Quantum AI Development

AI startup SandboxAQ adds Nvidia, Google as backers, raises additional $150 million

April 4 - SandboxAQ, a startup drawing on quantum computing techniques to develop quantitative artificial intelligence models for enterprises, said it has raised $150 million from new investors including Google, Nvidia (NVDA.O), opens new tab and BNP Paribas (BNPP.PA), opens new tab. The investment has increased SandboxAQ's Series E round to $450 million, valuing the startup at $5.75 billion. With this, SandboxAQ's total funding has reached $950 million, with T. Rowe Price Associates and Breyer Capital among backers. Participation of Google and Nvidia signals growing interest from technology giants to gain exposure in quantitative model development and place early bets on potential real-world applications. "We've proven ourselves from the first round in terms of delivering on our promises to a number of customers, and I think strategic investors were attracted to those breakthroughs," SandboxAQ CEO Jack Hidary told Reuters. SandboxAQ, a spin-off from Google-parent Alphabet (GOOGL.O), opens new tab in 2022, has designed Large Quantitative Models (LQMs) to handle extensive numerical datasets, perform complex calculations and conduct statistical analysis. Its models, available through first-party and third-party platforms such as Google Cloud, can potentially be used to assist drug discovery and develop sophisticated financial models. The company is based in Palo Alto and employs about 200 people. It plans to use the new funds to accelerate research and development and expand partnerships with enterprises in areas including biopharmaceuticals, chemicals and energy, Hidary said. Google and Nvidia have been increasing investment in-house and externally in quantum computing, which leverages the principles of quantum mechanics to perform computations beyond the capabilities of traditional computers. Nvidia, known for its chips that powered the generative AI boom, has recently placed emphasis on "physical AI." Nvidia CEO Jensen Huang dialed back skepticism regarding the timeline for practical quantum computing systems. At the chipmaker's "GTC Conference" last month, Huang said advancement in the field is progressing faster than anticipated as Nvidia set up its quantum research lab. Google's work in quantum computing drew attention in December when the firm announced a new generation of quantum chips, overcoming a major challenge in the field. In February, it participated in a $230 million funding round for QuEra Computing. Reporting by Krystal Hu in New York; Editing by Christopher Cushing Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence Krystal Hu Thomson Reuters Krystal reports on venture capital and startups for Reuters. She covers Silicon Valley and beyond through the lens of money and characters, with a focus on growth-stage startups, tech investments and AI. She has previously covered M&A for Reuters, breaking stories on Trump's SPAC and Elon Musk's Twitter financing. Previously, she reported on Amazon for Yahoo Finance, and her investigation of the company's retail practice was cited by lawmakers in Congress. Krystal started a career in journalism by writing about tech and politics in China. She has a master's degree from New York University, and enjoys a scoop of Matcha ice cream as much as getting a scoop at work.

SandboxAQ Adds $150M From Google, Nvidia And Others

Alphabet spinoff SandboxAQ -- an AI and quantum computing startup -- added another $150 million to its Series E from the likes of Google and Nvidia. The add-on comes less than four months after the company announced it had raised a $300 million round at a $5.6 billion valuation. Other investors in the Series E add-on include Ray Dalio, Horizon Kinetics and BNP Paribas. SandboxAQ is looking at the related effects of both AI and quantum -- which is where the company gets the "AQ" in its name -- to develop commercial products for telecom, financial services, healthcare, security and other computationally intensive sectors. The company already is working with a handful of customers on enterprise software and cybersecurity tools related to quantum computing. In March 2022, Alphabet officially spun off its 6-year-old quantum tech group -- SandboxAQ -- which emerged as its own company after closing a $500 million financing round and naming former Google CEO Eric Schmidt chairman. Investors in the round include Breyer Capital, Eric Schmidt, Thomas Tull, First Light Capital Group, funds and accounts advised by T. Rowe Price Associates, Guggenheim Investments, Time Ventures, S32, Parkway Venture Capital and other funds and investors. SandboxAQ has raised over $950 million, per the company. This is the second massive round from an Alphabet/Google spinout this week.

Nvidia And Google Bet Big On Quantum AI With $150M Investment In SandboxAQ, Raising Series E Round To $450 Million - Alphabet (NASDAQ:GOOGL), NVIDIA (NASDAQ:NVDA)

Quantum computing may still feel like science fiction to most, but for a handful of major players, the future is unfolding much faster than expected. Nvidia NVDA and Alphabet GOOGL GOOG)) are the latest to double down on that future, pouring a $150 million investment into SandboxAQ, a startup blending quantum tech with artificial intelligence. That latest funding boost brings the company's Series E total to $450 million and pushes its valuation to $5.75 billion. According to Reuters, SandboxAQ has now raised $950 million, with support from giants like T. Rowe Price Associates TROW and Breyer Capital, further solidifying its rise. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm -- invest pre-IPO from $0.55 per share now. Invest in the Future of Digital Engagement. Own a Piece of the $100 Billion Metaverse Today for Just $500. Tech Titans Zero In on Quantum AI Nvidia and Google's interest in quantum AI is a big step forward for the startup and the industry as a whole. At Nvidia's GTC Conference, CEO Jensen Huang broke down the speed at which quantum is developing, saying it is faster than almost everyone in the industry expected. A lot of quantum research thus far has been confined to academic circles, but we're starting to see momentum build around real-world applications, especially ones requiring massive computing power. SandboxAQ CEO Jack Hidary recently discussed the company's trajectory with Reuters. "We've proven ourselves from the first round in terms of delivering on our promises to a number of customers, and I think strategic investors were attracted to those breakthroughs," he said. Trending: With Shares Starting at Just $1.52, This Could be Your Chance to Invest in the Future of Healthcare. Spun out of Alphabet in 2022, SandboxAQ has focused on developing large quantitative models that consume vast datasets, perform complex mathematical tasks, and conduct complicated statistical analyses. These models are already available via Google Cloud, and the applications reach far out to real-world computing. From speeding up drug discovery to changing how financial institutions model risk, LQMs provide a real-world advantage in areas where speed and accuracy equal billions of dollars. Google and Nvidia Deepen Their Quantum Commitments The deal for SandboxAQ isn't Google's only play in this area. In December, the tech giant announced a new class of quantum processors that overcame an obstacle for the field that had been standing for many years. Only a few months earlier, Google had participated in QuEra Computing's $230 million round, indicating that the strategy is for the company to support in-house research and development. Nvidia, on the other hand, is going down a more corporeal path. Best known for its chips that ignited the generative AI boom, the company has begun to invest heavily in what it calls "physical AI," which links data to the real world. That encompasses the establishment of its own quantum research division, suggesting a far longer game at play. See Also: 'Scrolling To UBI' -- Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum. A Startup Powering the Next Wave of Technological Evolution SandboxAQ is based in Palo Alto, California, and employs around 200 people in various roles to accelerate quantum capabilities into the mainstream. With its newest cash infusion, the company intends to intensify research and development while growing partnerships in crucial domains including biopharma, chemicals, and energy. SandboxAQ distinguishes itself with the strategic partnerships it has secured. Furthermore, the company's LQMs are designed to scale, fine-tune, and adapt, which is particularly appealing in industries where innovation cycles are accelerating and regulatory environments demand precision. Now, with the transition from quantum computing theory to application in full swing, SandboxAQ is emerging as one of only a handful of companies that can command a leadership position in this space. Google's and Nvidia's backing only shows how serious that ambition is, and how soon we might see quantum AI reshape everything we know, from medicine to finance. Read Next: The $1.3 billion startup investment boom: How this company's explosive growth is opening doors for everyday investors with a new $500 minimum Deloitte's fastest-growing software company partners with Amazon, Walmart & Target - Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share! GOOGLAlphabet Inc $150.872.81% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum 50.26 Growth 64.46 Quality - Value 50.35 Price Trend Short Medium Long Overview NVDANVIDIA Corp $104.446.96% TROWT. Rowe Price Group Inc $83.412.14% Got Questions? Ask Which biopharma companies could thrive with quantum AI? How will financial institutions adapt to quantum advancements? What energy firms may benefit from SandboxAQ's tech? Could chemicals industry see innovation from quantum models? Which AI startups are competing with SandboxAQ? How might stock valuations change post-quantum AI adoption? What tech companies are best positioned for quantum advancements? Could cloud service providers partner with SandboxAQ? Which investors are backing quantum computing ventures? How will regulatory changes impact quantum AI applications? Powered By Market News and Data brought to you by Benzinga APIs

Nvidia- and Google-Backed SandboxAQ Raises $450 Million for Quantitative AI Platforms | PYMNTS.com

SandboxAQ raised over $450 million in a Series E round to support its development of large quantitative models (LQMs) that help enterprises leverage artificial intelligence (AI) to solve scientific and quantitative challenges. Its quantitative AI platforms are currently used in biopharma, chemistry, materials science, cybersecurity and financial services, per the release. "AI and advanced computing are having a powerful impact on financial services, and BNP Paribas Global markets is proud to be at the forefront of this trend," Olivier Osty, head of corporate and institutional banking global markets at BNP Paribas, said in the release. "I look forward to working with SandboxAQ to explore innovative solutions at the cross-roads of AI and quantum technologies." The merger of AI with quantum computing could have significant implications for financial services and other verticals, Chris Hume, senior director of business operations for SandboxAQ, told PYMNTS in an interview posted in February 2024. "The physical world is defined by quantum mechanics," Hume said. "The more effectively we can understand those interactions and then model those interactions, the more efficiently and effectively you can build predictive models. With the algorithms that we're developing combined with the classical computer hardware that's available today, you can build better predictive models, and that's the exciting part. And that's the opportunity at hand." SandboxAQ originated at Alphabet in 2016 and was spun off in 2022 to independently offer firms AI and quantum computing software. It formed an independent company to develop quantum AI solutions for financial services, healthcare, computer security, the U.S. government and other computer-intensive sectors. When SandBoxAQ raised more than $300 million in December, it was reported that the company works to stand out by adopting methods that differ from the approaches used by companies such as OpenAI. By running quantum physics algorithms on graphics processing units, it aims to move to more advanced machines.

AI startup SandboxAQ adds Nvidia, Google as backers, raises additional $150 million

SandboxAQ, a startup drawing on quantum computing techniques to develop quantitative artificial intelligence models for enterprises, said it has raised $150 million from new investors including Google, Nvidia and BNP Paribas. The investment has increased SandboxAQ's Series E round to $450 million, valuing the startup at $5.75 billion. With this, SandboxAQ's total funding has reached $950 million, with T. Rowe Price Associates and Breyer Capital among backers. Participation of Google and Nvidia signals growing interest from technology giants to gain exposure in quantitative model development and place early bets on potential real-world applications. "We've proven ourselves from the first round in terms of delivering on our promises to a number of customers, and I think strategic investors were attracted to those breakthroughs," SandboxAQ CEO Jack Hidary told Reuters. SandboxAQ, a spin-off from Google-parent Alphabet in 2022, has designed Large Quantitative Models (LQMs) to handle extensive numerical datasets, perform complex calculations and conduct statistical analysis. Its models, available through first-party and third-party platforms such as Google Cloud, can potentially be used to assist drug discovery and develop sophisticated financial models. The company is based in Palo Alto and employs about 200 people. It plans to use the new funds to accelerate research and development and expand partnerships with enterprises in areas including biopharmaceuticals, chemicals and energy, Hidary said. Google and Nvidia have been increasing investment in-house and externally in quantum computing, which leverages the principles of quantum mechanics to perform computations beyond the capabilities of traditional computers. Nvidia, known for its chips that powered the generative AI boom, has recently placed emphasis on "physical AI." Nvidia CEO Jensen Huang dialed back skepticism regarding the timeline for practical quantum computing systems. At the chipmaker's "GTC Conference" last month, Huang said advancement in the field is progressing faster than anticipated as Nvidia set up its quantum research lab. Google's work in quantum computing drew attention in December when the firm announced a new generation of quantum chips, overcoming a major challenge in the field. In February, it participated in a $230 million funding round for QuEra Computing. (Reporting by Krystal Hu in New York; Editing by Christopher Cushing)