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Venture capital firms spend big money on AI startups — especially those run by big names in tech — so SandboxAQ is reaching out again, despite having raised a whopping $500 million in early 2023.
The spin-off from Google’s parent company Alphabet is reportedly seeking to raise another round that would value it at $5 billion. Sources tell Bloomberg. Its latest $500 million round, which was completed in February 2023, had backers such as Breyer Capital, T. Rowe Price Funds, and Marc Benioff. Reuters reported at the time. PitchBook estimated its value after that round at $4 billion.
SandboxAQ started out as Alphabet’s AI quantum computing unit led by Jack Hydari, also known as the long-time X Prize board member. It was spun off from Alphabet to become an independent startup in March 2022, with Heidari serving as CEO. Billionaire and former Google CEO Eric Schmidt has become president of the startup.
Its mission is a veritable alphabet soup of buzzwords: to work at the intersection of quantum computing and artificial intelligence. But it’s not building a quantum computer, although its software products should one day work with it, Heydari said in a recent episode of the podcast. Peter H. Podcast Diamandis. Instead, it is building software based on quantum physics that can model molecules and predict their behavior. Google still Work on a quantum computer Part, but Heydari says SandboxAQ already has a number of quantum computing partnerships.
The startup has a fairly large and diverse portfolio of products in life sciences, materials sciences, navigation, cryptography and cybersecurity.
It does not work with the AI of the Chatbot AI ChatGPT variety. Instead of predicting language, AI techniques are used for large-scale equation modeling. Or as Heydari explained, “Instead of the world of big linguistic models, we have now entered the world of large quantitative models, LQMs. TQM is about starting with equations to generate data. …This is the most efficient way to generate data, and the most accurate way to generate data.”
To that end, it already has an impressive list of development contracts. For example, the company is working on how to extend lithium-ion battery life with battery company Novonix; It has contracted with the US Air Force to develop magnetic navigation systems that do not rely on the Global Positioning System (GPS); It is working with a number of US hospitals on an AI-powered “magnetocardiography system,” a new type of medical device for imaging the heart, among other projects.
So, this AI is swinging for bigger fences than writing research papers or creating fake videos.
Interestingly, there are some indications that SandboxAQ could become one of the AI companies that venture capitalists are keen to back. Throughout the year, a number of investors Created special purpose vehicles (SPVs) of a company’s shares. As mentioned earlier, such SPACs have become a popular financial instrument because many investors are keen to get a share of big-name AI startups.
SandboxAQ did not immediately respond to our request for comment.
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