Eric Schmidt’s SandboxAQ is targeting a $5 billion valuation for its Google AI/quantum Moonshot

VCs are spending huge amounts of cash on AI startups – especially those run by big names in tech – which is why SandboxAQ is reaching out again, regardless that it raised a whopping $500 million in early 2023.

According to reports, the corporate spun off from Google’s parent company, Alphabet, is trying to boost one other round that can value it at $5 billion. sources tell Bloomberg. The most up-to-date $500 million round, accomplished in February 2023, had backers equivalent to Breyer Capital, T. Rowe Price Funds and Marc Benioff, Reuters was reported then. PitchBook estimated its valuation after this round at $4 billion.

SandboxAQ began as Alphabet’s moonshot AI quantum computing unit, led by Jack Hidary, also often known as a longtime X Prize board member. In March 2022, it was spun off from Alphabet and transformed into an independent startup, with Hidary as CEO. Billionaire and former Google CEO Eric Schmidt became the startup’s president.

His mission is a veritable alphabet soup of buzzwords: working on the intersection of quantum computing and artificial intelligence. But he isn’t constructing a quantum computer, although his software should in the future work with them, Hidary said in a recent episode of the show Podcast by Peter H. Diamandis. Instead, it creates software based on quantum physics that may model molecules and predict their behavior. Google is still there works on a quantum computer part, but Hidary says SandboxAQ already has a variety of partnerships in the sector of quantum computing.

The startup has a large and somewhat wild portfolio of products within the fields of life sciences, materials science, navigation, encryption and cybersecurity.

Does not work with the AI ​​generative chatbot variant AI ChatGPT. Instead of predicting language, it uses large-scale artificial intelligence modeling techniques on equations. Or as Hidary explained: “Instead of a world of large language models, we have now entered a world of large quantitative models, LQM. LQM is about starting with equations to generate data. …It is the most efficient and accurate way to generate data.”

To this end, it already has a list of impressive development contracts. For example, it is working to increase the lifetime of lithium-ion batteries in collaboration with battery company Novonix; has a contract with the United States Air Force to develop magnetic navigation systems that don’t depend on GPS; is also working with a variety of US hospitals on a man-made intelligence-based “magnetocardiography system” – a recent variety of medical device for cardiac imaging, amongst other things.

So this AI chooses larger hurdles than writing term papers or creating fake videos.

Interestingly, there are some indications that SandboxAQ could change into considered one of the AI ​​corporations that VCs are desperate to back. Many investors all year long established special purpose vehicles (SPV) for company shares. As we have now previously reported, such special purpose vehicles have change into a popular financial tool because so many investors want to amass shares in well-known artificial intelligence startups.

SandboxAQ didn’t immediately reply to our request for comment.