VCs are investing money into AI firms, particularly those led by technology household names. Therefore, SandboxAQ is extending its hand again despite raising a whopping $500 million in early 2023 by Eric Schmidt.
According to Bloomberg, the spinoff from Google’s parent company Alphabet is looking to secure another round of funding valued at $5 billion. According to Reuters, Breyer Capital, T. Rowe Price funds, and Marc Benioff were among the investors in its most recent $500 million round, which closed in February 2023. PitchBook projected its post-round valuation to be $4 billion.
SandboxAQ originated as Alphabet’s moonshot AI quantum computing unit, helmed by Jack Hidary, a long-standing X Prize board member. It was spun off from Alphabet as a standalone startup in March 2022, with Hidary as CEO. Eric Schmidt, a billionaire and former Google CEO, has been named chairman of the startup.
Its objective is an alphabet soup of buzzwords: work at the confluence of quantum computing and artificial intelligence. However, Hidary stated in a recent episode of the Peter H. Diamandis podcast that it is not developing a quantum computer, even though its software solutions may one day be compatible with them.
Instead, it develops quantum physics-based software capable of modeling and predicting molecules’ behavior. Google is still working on the quantum computers part, but Hidary says SandboxAQ already has several quantum computing partnerships.
The business works on a wide range of products in life science, materials science, navigation, encryption, and cybersecurity.
It is not compatible with generative AI chatbots such as ChatGPT. Instead of predicting language, it applies large-scale modeling AI techniques to equations. Or, as Hidary put it, “Instead of the world of large language models, we’ve now entered the world of large quantitative models, LQMs.” LQMs use equations to generate data. That is the most efficient and accurate technique to generate data.
“Eric Schmidt’s SandboxAQ: The Next Big Bet in AI with Game-Changing Innovations”
To that purpose, it has already secured several impressive developmental contracts. For example, it is collaborating with battery company Novonix to extend the life of lithium-ion batteries; it has a contract with the United States Air Force to develop magnetic navigation systems that do not rely on GPS; and it is working with several US hospitals on an AI-powered “magnetocardiography system,” a new type of medical device for imaging the heart, among other projects.
So, this AI is aiming higher instead of producing term papers or making deepfake movies.
Interestingly, some signs are that SandboxAQ may become one of the AI startups VCs are eager to finance. Several investors established special purpose vehicles (SPVs) for the company’s shares throughout the year. As we previously noted, such SPVs have become a popular financial vehicle because so many investors want to own a piece of big-name AI businesses.
SandboxAQ did not promptly respond to our request for comment.
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Frequently Asked Questions:
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What is Eric Schmidt doing now?
He is currently the Chair of The Broad Institute’s Board of Trustees, a board member of The Mayo Clinic, and the Director of Science for America.
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How much of Google does Eric Schmidt own?
Schmidt was the former CEO of Alphabet, the holding company for Google, the world’s largest internet search provider. He owns roughly one percent of the Mountain View, California-based corporation. Google handles over 2 trillion queries each year, employs approximately 180,000 people, and generated $307 billion in revenue in 2023.
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What did Eric Schmidt do for Google?
Eric Schmidt is an accomplished technologist, entrepreneur, and philanthropist. As Google’s chief executive officer, he pioneered Google’s transformation from a Silicon Valley startup to a global leader in technology.
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Eric Schmidt’s net worth.
Eric Schmidt’s Net Worth was 2,290 crores USD in 2024.
