Google Parent's Spinoff Focused On AI, Quantum Computing Raises $500M

Alphabet Inc GOOGL GOOG spinoff Sandbox AQ, has raised $500 million.

What Happened: The enterprise software as a service company, with a focus on artificial intelligence and quantum software, counts former Google CEO Eric Schmidt as its chairman and investor.

Others that have invested in the startup include Breyer Capital, T.Rowe Price funds, and Salesforce Inc founder Marc Benioff’s TIME Ventures. Google is not a shareholder in Sandbox AQ. 

A spokesperson for Sandbox told Benzinga that this was not a new funding round but a disclosure of the “significant, nine-figure” funding round it announced when the company emerged from Alphabet in March 2022. 

Reuters reported on the development earlier on Tuesday.

See Also: Best Quantum Computing Stocks Right Now 

Why It Matters: Quantum computers are expected to be millions of times faster than today's supercomputers and Sandbox AQ helps users identify parts of cryptography that are vulnerable to the coming quantum evolution and bolsters encryption, according to its CEO Jack Hidary.

The company also sells simulation software to hasten the development of drugs and materials, but this doesn’t require quantum computers.

Last month, Sandbox reportedly won a contract with U.S. Air Force for research on quantum navigation technologies.

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