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.
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