Quantum computing may sound like science fiction, but it's rapidly emerging as one of the most transformative technologies of the next decade. That’s why companies like Nvidia Inc. NVDA and Alphabet Inc. GOOGL are not just watching from the sidelines—they're investing big. As reported by Reuters, their recent $150 million injection into SandboxAQ, a quantum-AI startup spun out of Alphabet in 2022, shows how serious these tech titans are about staying ahead of the next computing wave.
The investment brings SandboxAQ’s total Series E round to $450 million and its valuation to $5.75 billion. With previous backing from T. Rowe Price TROW and Breyer Capital, SandboxAQ has now raised a total of $950 million, positioning it as a frontrunner in commercializing quantum-powered AI solutions.
SandboxAQ stands at the intersection of quantum computing and artificial intelligence, a niche but powerful domain that combines cutting-edge computation with large quantitative models (LQMs). These models excel at processing massive datasets, performing high-level mathematics, and conducting complex statistical tasks—all core requirements in industries like drug discovery, financial modeling, and materials science.
Already available through Google Cloud, SandboxAQ’s LQMs are not just theoretical tools. They’re being actively deployed by enterprises seeking real-world advantages in speed, scale, and precision—where shaving milliseconds off computations can equate to millions saved or earned.
According to CEO Jack Hidary, the company has repeatedly proven its ability to deliver on commercial promises, which has only strengthened investor confidence like Nvidia and Google. “Strategic investors were attracted to those breakthroughs,” Hidary told Reuters.
The investment in SandboxAQ marks another chapter in Nvidia and Alphabet’s deeper commitment to quantum computing. As Nvidia pivots toward what it calls “physical AI”—integrating AI with real-world data, simulations, and now quantum modeling—this Zacks Rank #2 (Buy) company has formed a dedicated quantum division to sharpen its focus on long-term breakthroughs. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alphabet, for its part, has stepped up its quantum efforts in parallel. In December 2024, it unveiled a new generation of processors that cracked a major challenge in quantum error correction. The tech giant, currently carrying a Zacks Rank #3 (Hold), also participated in QuEra Computing’s $230 million funding round, reflecting its dual-track strategy of internal innovation and strategic external bets—like its continued support of SandboxAQ.
The tech industry is quickly approaching a plateau in traditional silicon-based computing. As Moore’s Law slows, the search for alternate pathways to computing power intensifies. Quantum computing, particularly when fused with AI, offers one of the few viable leaps forward.
By investing in SandboxAQ now, Alphabet and Nvidia aren’t just hedging bets—they’re positioning themselves in pole position for the post-silicon world. This is a strategic move to secure talent, infrastructure, and proprietary algorithms in a domain where early dominance could mean long-term industry control.
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