SandboxAQ secures $300m to advance AI quantum tech

SandboxAQ has announced a funding round exceeding $300 million, valuing the company at $5.3 billion on a pre-money basis.

The Palo Alto-based company emerged from Alphabet and operates at the intersection of AI and quantum technologies. The funding was led by Fred Alger Management, T. Rowe Price Associates, and Mumtalakat, among other investors.

This recent capital injection aims to accelerate the development of SandboxAQ's Large Quantitative Models (LQMs) and other AI applications. These models will be applied in fields such as drug discovery, materials sciences, cybersecurity, navigation, and medical devices.

Jack D. Hidary, Chief Executive Officer of SandboxAQ, stated, "Large Quantitative Models are the next wave of AI as they provide a powerful ability to solve science and business problems for large industries including aerospace, biopharma, chemicals, defense, energy, finance, and more. The capital raise we are announcing today gives us additional resources to drive deep impact at scale."

Eric Schmidt, Chairman of SandboxAQ, emphasised the significance of moving beyond the limitations of LLMs, saying, "Leading global enterprises are realising that they must look beyond the capabilities and limitations of LLMs and embrace LQMs in order to maximise the ROI from their AI investments. Jack Hidary and his team at SandboxAQ have shown the ability to create significant customer value across key industries such as biopharma, chemicals, and financial services."

Jim Breyer of Breyer Capital remarked on the growth potential for LQMs across various sectors, noting, "We see significant growth potential and opportunity for LQMs across a broad range of industries, which is why investing in SandboxAQ is an investment in AI's future."

Yann LeCun, a leading AI scientist, also commented on his investment in the company, highlighting, "I am investing in SandboxAQ because of their industry-leading approach to quantitative AI. While LLMs are very helpful tools for consumers, it is quantitative AI that will define work in large sectors of the economy including biopharma, chemicals, and financial services."

In 2024, SandboxAQ has seen notable achievements across a range of industries. The company's AQBioSim division has made advances in neurodegenerative disease therapies, partnering with academic institutions and biopharma companies to identify new biomarkers.

In materials science, the AQChemSim division has upgraded its capabilities in material design and computational chemistry, notably enhancing battery life prediction accuracy and efficiency in lithium-ion technologies.

SandboxAQ also made strides in the medical field with its AQMed division's product, CardiAQ, which is undergoing clinical research to potentially improve cardiac diagnostics through MCG technology.

In navigation, AQNav has reached important milestones in aerospace applications, particularly in GPS-devoid navigation systems, culminating in a contract extension with the U.S. Air Force.

Finally, the AQtive Guard initiative has expanded through a partnership with Accenture, deploying cryptography management solutions in financial services and life sciences.

J.P. Morgan provided advisory services to SandboxAQ for the financing round. The company continues to leverage its position at the forefront of AI and quantum technology with this strategic financial boost.