Nvidia And Google Bet Big On Quantum AI With $150M Investment In SandboxAQ, Raising Series E Round To $450 Million
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 (NASDAQ:NVDA) and Alphabet (NASDAQ: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 (NASDAQ:TROW) and Breyer Capital, further solidifying its rise.
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Hasbro, MGM, and Skechers trust this AI marketing firm — .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.
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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.
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.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.
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