SandboxAQ was built within Alphabet as an exploratory initiative to blend artificial intelligence (AI) with quantum technologies (Q), marking the beginning of what would become one of the most forward-thinking ventures in the tech world. Officially spinning out as an independent company in 2022, SandboxAQ has since focused on applying its AQ expertise to tackle some of the most pressing global issues—ranging from cybersecurity and healthcare to navigation and climate change.
Led by Jack D. Hidary, a veteran tech entrepreneur, SandboxAQ is positioning itself in quantum computing, cryptography, and AI. By combining these disciplines, the company is spearheading innovation in areas that are poised to undergo significant transformations in the coming decades. This unique approach to solving global problems has attracted the attention of investors, partners, and governments worldwide, fueling the company’s rapid rise. “SandboxAQ focuses on leveraging the combined power of AI and quantum technologies to address critical challenges in cybersecurity, healthcare, navigation, and financial services.” says Jack
The Vision of AQ
SandboxAQ’s journey began in 2016 within the halls of Alphabet Inc., where Jack D. Hidary and his team started working on quantum AI projects. After six years of development, the company emerged as an independent, venture-backed entity in 2022. This spinout marked the beginning of a new era for the company, allowing it to pursue its ambitious goals with greater flexibility and focus.
A Quantum Leap in Funding
The company’s last funding round in February 2023 raised an impressive $500 million, bringing its total funding to $500 million across four rounds. Notable investors include Breyer Capital, T. Rowe Price funds, Time Ventures, Guggenheim Partners, and individual investors like Salesforce CEO Marc Benioff and Thomas Tull. This round reportedly valued the company at around $4 billion, according to PitchBook estimates.
Now, barely a year later, SandboxAQ is looking to push that valuation even higher, aiming for the $5 billion mark. This rapid increase in valuation demonstrates the high level of interest and potential that investors see in SandboxAQ’s technology and vision.
Leadership That Inspires Confidence
At the helm of SandboxAQ is CEO Jack D. Hidary, a serial entrepreneur with a remarkable journey from teenage coder to quantum AI visionary. Hidary’s early success with EarthWeb, which went public in 1998, set the stage for his later ventures into cutting-edge technologies. His vision and leadership have been instrumental in guiding SandboxAQ’s direction and securing key partnerships.
Adding to the company’s credibility is its chairman, Eric Schmidt, the former CEO of Google. Schmidt’s involvement not only as chairman but also as an investor speaks volumes about the potential he sees in SandboxAQ’s mission. This high-profile leadership team underscores the company’s ambitious goals and potential for impact across various industries.
The Power of Large Quantitative Models
While many AI companies are focused on generative AI and language models, SandboxAQ is charting a different course. As Hidary explains, “Instead of the world of large language models, we’ve now entered the world of large quantitative models, LQMs. And LQMs are about starting with equations to generate data. …That’s the most efficient way to generate data, and the most accurate way to generate data.”
This unique approach sets SandboxAQ apart in the AI landscape. Rather than building quantum computers, the company is developing software based on quantum physics that can model molecules and predict their behavior. This focus on “large quantitative models” (LQMs) applies AI techniques to equations for generating data, a method that differs significantly from generative AI chatbots.
The company’s technology stack includes:
- AQtive Guard: A solution that enables continuous inventory of existing cryptography and provides encryption remediation across IT infrastructure.
- Quantum Sensors: SandboxAQ combines quantum sensors with advanced AI to unlock new insights in navigation, medical devices, and imaging.
- Large Quantitative Models: These AI models are being developed to provide unprecedented insights in areas such as life sciences, energy, chemicals, and financial services.
Practical Applications Across Industries
SandboxAQ’s technology is not just theoretical; it’s being put to practical use across various sectors:
1. Cybersecurity
Developing post-quantum cryptography modules to help companies transition to more secure cyber architectures. The partnership with Accenture aims to help organizations secure sensitive data and strengthen encryption across their technology portfolios.
2. Healthcare
Working on projects to revolutionize drug discovery and improve patient care. The company has unveiled its AQMed division and CardiAQ™ medical device, which uses magnetocardiography (MCG) technology to detect magnetic fields of the heart using room-temperature sensors. Clinical studies are ongoing at institutions like UCSF Medical Center, Mount Sinai Medical Center, and Mayo Clinic.
“Right now, it takes on average 13 years to develop one drug. It takes on average 2.5 billion euros to develop one drug, and even after all that time and money, there’s an 80% failure rate in clinical trials,” Hidary said. However, he sees a solution in AI and quantum simulation: “We can run it through millions of simulations way before it ever gets to the first human.”
3. Navigation
Secured a contract with the US Air Force to research quantum navigation technologies. SandboxAQ successfully demonstrated AQNav, their real-time AI magnetic navigation system, on a USAF C-17 Globemaster III aircraft. The system operates without GPS, providing a crucial alternative in GPS-denied environments.
4. Battery Technology
Collaborating with Novonix to extend lithium-ion battery life. Their large quantitative models have shown remarkable improvements in predicting battery end-of-life, reducing prediction time by 95% and achieving 35 times greater accuracy compared to traditional approaches.
5. Financial Services
Applying LQMs to deliver critical advances in the financial sector, providing unprecedented insights and risk assessment capabilities.
6. Pharmaceutical Research
The acquisition of Good Chemistry for $75 million in January 2024 marks SandboxAQ’s entry into the pharmaceutical industry. This move aims to accelerate drug discovery by leveraging advanced computational methods to predict molecular behavior more accurately and efficiently.
Partnerships and Collaborations
SandboxAQ has established partnerships with leading organizations across various sectors:
- Vodafone Business, Mt. Sinai Health System, and Wix are among their customers.
- Professional services organizations are partnering with SandboxAQ to implement AI-driven solutions for enterprise clients.
- Collaboration with Nvidia to integrate SandboxAQ’s LQMs with Nvidia’s CUDA-accelerated Density Matrix Renormalization Group (DMRG) algorithm, achieving computing speeds over 80 times faster than traditional 128-core CPUs.
- Partnerships with major pharmaceutical companies like AstraZeneca, Sanofi, and Flagship Pioneering for target identification and drug discovery.
SandboxAQ boasts a diverse team of 55 engineers, scientists, and technologists collaborating across various disciplines, including physics, chemistry, AI, neuroscience, cryptography, and mathematics. This interdisciplinary approach allows the company to tackle complex problems from multiple angles.
The Road to $5 Billion
As SandboxAQ seeks to raise its valuation to $5 billion, it’s clear that investors see immense potential in the company’s approach to AI and quantum technologies. The combination of groundbreaking technology, practical applications across multiple industries, and a leadership team with a proven track record makes SandboxAQ an attractive prospect for venture capitalists.
“I would say that by the year 2029… we’ll start having the building blocks of about a thousand to 5,000 physical qubits in like these modular Lego blocks.”
However, the company faces challenges in a rapidly evolving technological landscape:
- Competition from other AI and quantum computing companies
- The need to deliver on its promises and demonstrate real-world impact
- Navigating regulatory environments across different industries and countries
- Scaling its technology and solutions to meet growing demand
Despite these challenges, SandboxAQ seems well-positioned to make a significant impact in the world of quantum AI. With its innovative approach to AI, strategic partnerships, and a growing portfolio of practical applications, the company is pushing the boundaries of what’s possible with LQMs and quantum-inspired technologies.
As we look to the future, the question remains: Can SandboxAQ use its unique technology stack, industry partnerships, and talented team to justify its ambitious $5 billion valuation? The tech world will be watching closely to see if SandboxAQ can indeed make the quantum leap.
As Jack Hidary says, “Information, not in a generic sense but in a very specific technical understanding of that word… is fundamental to the breakthroughs that we’re now seeing both in the AI world and we are now seeing in the application of quantum physics for the first time at scale.”