April 4 - SandboxAQ, a startup drawing on quantum

computing techniques to develop quantitative artificial

intelligence models for enterprises, said it has raised $150

million from new investors including Google, Nvidia ( NVDA ) and

BNP Paribas.

The investment has increased SandboxAQ's Series E round to

$450 million, valuing the startup at $5.75 billion. With this,

SandboxAQ's total funding has reached $950 million, with T. Rowe

Price Associates and Breyer Capital among backers.

Participation of Google and Nvidia ( NVDA ) signals growing interest

from technology giants to gain exposure in quantitative model

development and place early bets on potential real-world

applications.

"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,"

SandboxAQ CEO Jack Hidary told Reuters.

SandboxAQ, a spin-off from Google-parent Alphabet

in 2022, has designed Large Quantitative Models (LQMs) to handle

extensive numerical datasets, perform complex calculations and

conduct statistical analysis. Its models, available through

first-party and third-party platforms such as Google Cloud, can

potentially be used to assist drug discovery and develop

sophisticated financial models.

The company is based in Palo Alto and employs about 200

people. It plans to use the new funds to accelerate research and

development and expand partnerships with enterprises in areas

including biopharmaceuticals, chemicals and energy, Hidary said.

Google and Nvidia ( NVDA ) have been increasing investment in-house

and externally in quantum computing, which leverages the

principles of quantum mechanics to perform computations beyond

the capabilities of traditional computers. Nvidia ( NVDA ), known for its

chips that powered the generative AI boom, has recently placed

emphasis on "physical AI."

Nvidia ( NVDA ) CEO Jensen Huang dialed back skepticism regarding the

timeline for practical quantum computing systems. At the

chipmaker's "GTC Conference" last month, Huang said advancement

in the field is progressing faster than anticipated as Nvidia ( NVDA )

set up its quantum research lab.

Google's work in quantum computing drew attention in

December when the firm announced a new generation of quantum

chips, overcoming a major challenge in the field. In February,

it participated in a $230 million funding round for QuEra

Computing.