AI That Touches the Real World: Why Quantitative AI Is the Future of Industry

Yesterday we shared a $95 million secondary offering – driven by investor confidence and our desire to provide long-term liquidity for our employees. This follows our $452 million primary raise in April, with participation from NVIDIA, Google, Ray Dalio, and others, bringing our total funding to just under $1 billion since we spun out from Alphabet in 2022. 

Investors such as Rizvi Traverse, Forge Global, and the Ava Family Office joined the secondary offering, reflecting investor confidence in our long-term mission and ability to deliver deep AI impact at scale.

“We chose to take a leading position in the SandboxAQ secondary because we believe quantitative AI is redefining entire industries – and SandboxAQ is pioneering that frontier,” said Suhail Rizvi, Managing Director of Rizvi Traverse. “Their unique approach to applying AI in domains like cybersecurity, drug discovery, and quantum simulation is unlike anything else we’ve seen in the market. The combination of technical depth, commercial traction, and long-term defensibility make SandboxAQ an exceptional opportunity for us to double down.”

Our CFO David Silverman also weighed in: “From day one, it’s been our intention to give our employees meaningful long-term liquidity, and this secondary is a key milestone in delivering on that promise. It’s incredibly encouraging to see such strong demand from both existing and new investors—it’s a testament to the confidence in our mission and momentum.”

While most of the AI world remains focused on analyzing or generating text, drafting memos, or creating marketing copy, we’re focused on something much bigger: building an AI platform that impacts the physical world and creates true enterprise value. The vast majority of enterprise challenges are not linguistic – they’re quantitative – so relying on probabilistic, language-based AI models will only take them so far. Industries that underpin the global economy – biopharma, energy, aerospace, automotive, defense, finance and others – don’t need probability. They need precision.

That’s where our Large Quantitative Models (LQMs) come in. These models are grounded in physics, chemistry, biology, and mathematics, and built to simulate how complex systems interact. They’re redefining what AI can do:

• In healthcare, our AQBioSim platform is collapsing drug discovery timelines from a decade or more to months, accelerating R&D for breakthrough treatments while significantly lowering costs
  
• In defense and automotive, our AQChemSim platform is designing stronger, lighter metal alloys to better protect occupants while reducing fuel consumption. .
  
• In energy, AQChemSim is improving battery chemistries, materials, designs and testing to support the growing global demand for electrification. At the same time, we’re working with leading petroleum companies to bring cleaner, higher-value products to market.
  
• In aerospace, our AQNav system is pioneering GPS-independent magnetic navigation to keep planes and passengers safe in contested environments.
  
• In cybersecurity, AQtive Guard is helping some of the world’s largest financial institutions, telcos, and government agencies proactively defend against AI- and quantum-based threats.

That’s just the tip of the iceberg. The potential for LQMs to create value, transform industries, and impact the physical world is enormous. We are a small but mighty team – more than 87 PhDs and 110 engineers working together to tackle some of the world’s biggest challenges. And we are backed by a powerful ecosystem, including Google, NVIDIA, and strategic financial partners who understand that true economic transformation doesn’t come from cost-cutting, it comes from innovation and invention.

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