In a move that underscores the intense interest in AI startups, SandboxAQ, a spinout from Google parent company Alphabet, is reportedly seeking to raise another funding round that would value the company at a whopping $5 billion. This comes just months after it raised a staggering $500 million in early 2023, which valued the company at $4 billion.

Led by CEO Jack Hidary, a longtime X Prize board member, and chaired by billionaire and former Google CEO Eric Schmidt, SandboxAQ is working at the intersection of quantum computing and AI. Instead of building a quantum computer, the startup is developing software based on quantum physics that can model molecules and make predictions of their behavior. Its products span life science, materials science, navigation, encryption, and cybersecurity, with impressive developmental contracts already in place.

The company's approach to AI, using large modeling techniques on equations, sets it apart from generative AI chatbots like ChatGPT. With its sights set on solving complex problems, SandboxAQ is attracting significant attention from investors, who are eager to back big-name AI startups.