SandboxAQ Showed Large Quantitative Models Are the Future of Enterprise AI

Artificial intelligence has transformed how industries operate, but its application often focuses on language and text processing. Beneath this spotlight, another layer of AI innovation has been emerging, aimed at solving computational and quantitative challenges that traditional models cannot address. This vision forms the foundation of SandboxAQ, a company that spun out of Alphabet in 2022 under the leadership of Jack Hidary.

Focused on Large Quantitative Models (LQMs) rather than the more widely known Large Language Models (LLMs), SandboxAQ has carved out a unique space in the AI ecosystem. LQMs excel in tackling complex problems in areas such as drug discovery, quantum-inspired computing, and GPS-free navigation. This approach has propelled the company to a $5.6 billion valuation, supported by a recent $300 million funding round led by Fred Alger Management, T. Rowe Price, and Breyer Capital.

Pivot Toward Quantitative AI

Unlike language-based models, LQMs leverage numerical data and equations to provide solutions in industries where language models fall short. This focus addresses critical needs in healthcare, financial risk management, materials science, and more.

Jack Hidary, CEO of SandboxAQ, explained, “The majority of the economy is actually not based on language. It’s actually based on quantitative relationships.” The company’s innovations reflect this understanding, enabling breakthroughs that are reshaping traditional workflows and driving efficiency.

Eric Schmidt, chairman of SandboxAQ and former CEO of Google, underscored the importance of this shift: “Leading global enterprises are realizing that they must look beyond the capabilities and limitations of LLMs and embrace LQMs in order to maximize the ROI from their AI investments.”

How SandboxAQ Applies AI to Industry Challenges

SandboxAQ’s technology portfolio spans several high-impact sectors:

Drug Discovery:
SandboxAQ’s AQBioSim division has been instrumental in accelerating research into neurodegenerative diseases and identifying biomarkers that can change patient care. By collaborating with leading academic institutions and biopharma companies, the company has significantly reduced the time required to develop clinical molecules.

Materials Science:
Using advanced computational techniques, the AQChemSim division has contributed to improving battery technology and chemical development. Its collaboration with NVIDIA resulted in an 80x improvement in computational chemistry capabilities, dramatically reducing lithium-ion battery life prediction times by 95%.

“Our software today can run on GPUs, and in the future, we can also incorporate quantum processing units, QPUs,” Hidary noted. “At SandboxAQ, the AQ stands for AI and Quantum.”

Quantum-inspired algorithms further enable SandboxAQ to test millions of molecular permutations. These simulations provide researchers with unprecedented insights into the structure of materials or molecules, identifying viable candidates for further study.

“That dataset comes from taking a molecule and applying molecular equations to it to make small changes 100 million times,” Hidary explained. “Each permutation is then tested using quantum-inspired algorithms to predict how it might behave in the real world.”

Healthcare Diagnostics:
The AQMed division is advancing magnetocardiography (MCG) diagnostics through its CardiAQ device, which aims to provide more accurate and early detection of heart conditions.

GPS-Free Navigation:
The AQNav system has been adopted by the U.S. Air Force to improve aircraft navigation in GPS-denied environments. This technology addresses critical defense needs while offering potential applications in commercial aerospace.

SandboxAQ has also built an impressive network of collaborators, including consulting powerhouses such as Accenture, Deloitte, and EY. These partnerships extend the reach of its solutions to enterprise clients across multiple sectors.

Its work in quantum-inspired computing further cements its leadership position. By optimizing existing NVIDIA GPUs with enhanced CUDA capabilities, SandboxAQ has demonstrated the ability to solve computational problems that even quantum computers cannot yet address.

“Through SandboxAQ, Breyer Capital has a front-row seat to a generation-defining company with some of the most inspiring uses of AI technology,” said Jim Breyer, CEO of Breyer Capital.

Why LQMs Are Key to the Future

LQMs represent a critical leap forward in how AI is applied to quantitative fields. From optimizing financial risk to predicting material behavior, these models fill gaps left by LLMs, which rely heavily on text-based training.

Jack Hidary highlighted their practical utility: “If I have a portfolio and I want to know what the tail risk is given changes in this portfolio, I’d like to create 300 to 500 million versions of that portfolio with slight changes to it, and then look at the tail risk.”

Such capabilities are redefining industries that depend on quantitative data, paving the way for advancements in everything from supply chain optimization to climate modeling.

With its recent funding, SandboxAQ plans to scale its LQM offerings and deepen its influence across healthcare, aerospace, and beyond. Its approach to solving real-world challenges has already positioned it as a leader in quantitative AI. Bloomberg previously reported that SandboxAQ was seeking equity funding at a valuation exceeding $5 billion. With its $300 million funding round completed in 2024, the company plans to expand its workforce, including hiring more Ph.D.s and engineers to further its ambitions.

Hidary elaborated, “We now have upwards of 80 Ph.D.s in the company. We have more than 70 additional software engineers, and proceeds of this round will be used to continue to hire.”

Yann LeCun, a Turing Award-winning AI scientist, summarized the significance of SandboxAQ’s work: “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. SandboxAQ has emerged as a leader in novel applications of AI that solve the most pressing challenges in the world.”