Eric Schmidt eyes $5B valuation for AI and quantum technology

• SandboxAQ, a spinout from Alphabet, seeks to raise funds again after securing $500 million in early 2023.
• SandboxAQ’s effective approach utilizes large quantitative models (LQMs) to generate data from equations.

What happened

Former CEO of Google, Eric Schmidt’s pursuit of a $5 billion valuation for SandboxAQ signifies a strategic move in the evolving landscape of AI and quantum technology. This ambition reflects the growing importance and potential of these fields. As former CEO of Google, Schmidt understands the value of innovation in technology and its capacity to transform industries.

SandboxAQ, a spinoff from Alphabet, operates at the intersection of AI and quantum computing. Unlike traditional approaches, it focuses on developing software that applies quantum physics to model molecules and predict their behavior. This positions the company uniquely in a market increasingly dominated by generative AI and quantum solutions.

The proposed $5 billion valuation suggests that investors see significant potential in SandboxAQ’s mission. The company has already raised $500 million earlier this year, backed by high-profile investors. This funding indicates confidence in its technology and leadership, further fueling expectations for future growth.

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Why it’s important

Venture capitalists are heavily investing in AI startups, especially those led by tech industry veterans. In this landscape, SandboxAQ, a spinout from Alphabet, seeks to raise funds again after securing $500 million in early 2023. Sources indicate the startup aims for a valuation of $5 billion in its new funding round. Notable investors in its previous round included Breyer Capital, T. Rowe Price, and Marc Benioff.

Founded in March 2022, SandboxAQ is led by CEO Jack Hidary and chaired by former Google CEO Eric Schmidt. The company operates at the intersection of quantum computing and AI, developing software based on quantum physics rather than building quantum computers. This software aims to model molecules and predict their behavior, complementing Google’s quantum computing efforts.

SandboxAQ is involved in various fields, including life sciences, materials science, navigation, encryption, and cybersecurity. Unlike typical generative AI, its approach utilizes large quantitative models (LQMs) to generate data from equations. This method is considered more efficient and accurate.