📊 Market Pulse: SandboxAQ Scores $150 Million Funding from Google and NVIDIA, Boosting Valuation to $5.75 Billion

SandboxAQ, a quantum-tech startup spun off from Google’s parent Alphabet in 2022, has raised an additional $150 million from Google, NVIDIA, and other investors. The infusion brings the company’s valuation to $5.75 billion, with total funding to date nearing $950 million. This latest funding – which also saw participation from BNP Paribas and notable venture backers like T. Rowe Price – signals growing confidence in SandboxAQ’s approach to blending quantum computing techniques with AI for real-world business applications.

What Does SandboxAQ Do?

SandboxAQ specializes in developing Large Quantitative Models (LQMs) – a class of AI models designed for number-heavy, scientific and financial tasks. In simple terms, LQMs are to numbers and scientific data what large language models (LLMs) are to text.

These models draw on algorithms inspired by quantum physics but run on classical computing platforms, including cloud services like Google Cloud. Crucially, LQMs complement the text-focused AI that many businesses are familiar with.

In other words, while chatbots and language AIs might draft an email or answer questions, SandboxAQ’s quantitative models crunch equations and data at a massive scale – no quantum computer required.

Real-World Applications

SandboxAQ’s technology is already being applied across a range of industries:

1. Drug Discovery: In biotech and pharmaceuticals, LQMs simulate molecular interactions and identify promising drug candidates faster.

2. Financial Modeling: SandboxAQ’s AI powers advanced financial tools – including risk analysis, portfolio optimization, and market simulations – well beyond traditional spreadsheets.

3. Other Industries: The company is expanding into chemicals, energy, aerospace, and defense, leveraging LQMs for materials science and logistics challenges.

Big-Name Backers and a $5.75B Valuation

The latest $150 million funding tranche – an extension of the Series E – was led by Google and NVIDIA, joined by BNP Paribas and other institutional investors. The Palo Alto-based company, with about 200 employees, says it will use the new capital to accelerate R&D and scale enterprise partnerships. "We’ve proven ourselves from the first round in terms of delivering on our promises to a number of customers, and I think strategic investors were attracted to those breakthroughs” Hidary told Reuters.

Google’s involvement is particularly strategic – the company originally incubated SandboxAQ, and Google Cloud already hosts some of its AI models. NVIDIA’s participation also aligns with its broader “AI + physics” thesis, including recent collaborations to accelerate SandboxAQ’s computational chemistry simulations by 80× using NVIDIA GPUs.

Google and NVIDIA: Strategic Support from Tech Titans

Google’s Quantum Vision: Google has been a key player in quantum computing research for years. It recently announced quantum chips with improved error correction, while also investing in startups like QuEra. Backing SandboxAQ gives Google both a software ally for classical infrastructure and a future customer for its quantum stack.

NVIDIA’s “Physical AI” Strategy: NVIDIA’s new quantum research lab in Boston and investments in quantum-AI hybrids reflect its belief in accelerated computing beyond today’s LLMs.

By investing in SandboxAQ, NVIDIA is betting on AI models that push the limits of GPU performance and build a bridge to quantum applications.

How SandboxAQ Compares to 2025’s Other Big Tech Fundraises

To understand the scale of SandboxAQ’s raise and valuation, here’s how it compares with other notable 2025 funding rounds:

SandboxAQ’s valuation places it among the most valuable startups in quantum-related AI, ahead of most quantum hardware peers and on par with fast-growing enterprise AI firms.

Why It Matters: A Turning Point for Quantum-Inspired AI

SandboxAQ’s round represents more than just capital:

1. Validation of Hybrid Models: LQMs show that value can be unlocked today from quantum principles, even without quantum hardware.

2. Mainstream VC Interest: Investors now see quantum and AI hybrids as near-term opportunities, not just research gambles.

3. Big Tech as Catalysts: Google and NVIDIA’s participation sends a signal to the broader market – SandboxAQ isn’t just viable, it’s strategic.

4. Broader AI+X Trend: As AI matures, investors are funding “AI-plus” sectors – AI + quantum, AI + bio, AI + materials – and SandboxAQ sits at this crossroads.

As AI and quantum continue to converge, SandboxAQ appears well-positioned to define the next frontier of enterprise software.