- SandboxAQ is going to acquire Good Chemistry in a reported a $75 million cash and stock deal.
- SandboxAQ emerged from Google’s parent company Alphabet and Good Chemistry is a Vancouver-based spinoff from quantum computing firm 1QBit.
- The Wall Street Journal reported the acquisition.
The good chemistry is obvious in the first quantum-related acquisition of 2024. SandboxAQ, an artificial intelligence and quantum company, is set to acquire Good Chemistry, the Wall Street Journal is reporting.
Sources tell the WSJ that it’s a $75 million deal, comprising cash and stock, and marks a pivotal step in advancing technologies that could revolutionize the development of new drugs and materials.
SandboxAQ, which emerged from Google’s parent company Alphabet in 2022, specializes in quantum-technology and AI tools for commercial use, including molecular simulations. The acquisition of Good Chemistry, a Vancouver-based spinoff from quantum computing firm 1QBit, is aimed at expanding SandboxAQ’s customer base and enhancing its quantum talent pool, according to WSJ. Good Chemistry, known for its work with Dow Chemical, leverages quantum technology and machine learning to predict and simulate chemical properties.
Jack Hidary, Chief Executive of SandboxAQ, sees huge potential for this combination of forces.
“Combining forces, we absolutely can serve this market at a bigger scale and with more capability,” he told the WSJ.
Good Chemistry’s CEO, Arman Zaribafiyan, will join SandboxAQ as head of product for AI simulation platforms. The integration of Good Chemistry’s software into SandboxAQ’s enterprise portfolio may create a transformative suite of products.
This acquisition, SandboxAQ’s second after purchasing cybersecurity firm Cryptosense in 2022, was finalized last Friday, the paper reported. Both SandboxAQ and Good Chemistry use algorithms designed to harness the power of quantum computing for simulating material behaviors at a molecular level. According to Hidary, this capability is crucial for training new AI algorithms in drug discovery and material development. Zaribafiyan also pointed out the efficiency of this approach, noting the potential to significantly speed up and reduce the cost of developing new drugs or materials by simulating chemical behaviors instead of physical testing.
A growing demand for these services drove this move, according to the paper. Hidary told the WSJ he sees a future where AI’s impact on sectors like healthcare, automotive, aerospace, and renewable energy will be profoundly shaped by these technologies. Reema Khan, founder of Green Sands Equity and an early investor in Good Chemistry, cited the influential backing of SandboxAQ by figures like former Google CEO Eric Schmidt and Salesforce CEO Marc Benioff, acknowledging the deal’s potential to scale Good Chemistry’s technology.
Carl Dukatz, Next-Gen Compute lead at Accenture, told the WSJ he viewed the merger as a promising combination that could yield highly beneficial products, particularly in the active quantum and AI ecosystem.