Sandbox AQ, the quantum security technology firm recently spun off from Google parent Alphabet has had a busy week. First, the company said in a Bloomberg report that it raised new funds from In-Q-Tel, which is the venture capital arm of the CIA, and Paladin Group. Also this week, Sandbox AQ landed two major partners, Deloitte and Ernst & Young (EY), to help the company drive its products into enterprise organizations.
The Bloomberg report quoted Sandbox AQ CEO Jack Hidary as saying that the funding round In-Q-Tel and Paladin participated in was “well into the nine figures,” though no further details on the amount were reported. Paladin Group also separately confirmed the investment. The connection to the CIA likely will help Sandbox AQ forge closer relationships to government agencies at a time when concerns are growing over the cybersecurity threat posed by quantum computers.
Meanwhile, Sandbox AQ announced its first two partnerships since spinning off from Alphabet earlier this spring. Deloitte is becoming a Platinum Global Systems Integrator, providing Sandbox AQ’s “quantum-readiness” solutions to organizations looking to prepare for disruptions caused by maturing quantum technologies – both potential benefits and security threats, according to a press release. This will include helping joint customers of the two firms upgrade their cybersecurity infrastructures, including transitioning to quantum-resistant cryptographic algorithms. Other use cases the partners will pursue include leveraging AI and quantum for applications in financial services, biopharma, and chemistry modeling and simulation.
Deborah Golden, Deloitte US Cyber and Strategic Risk leader and principal, Deloitte & Touche LLP, added, "As our clients explore nascent quantum technology and its potentially transformational impacts, we're very focused on cyber considerations. We're scaling Deloitte's quantum security ecosystem with technologies, academic institutions, and industry to help organizations preempt threats, transform securely and work toward a competitive market advantage that could result from early adoption."
In the second partnership move, EY is becoming a Strategic Alliance Partner of Sandbox AQ, which means the two companies will work together to bring clients the systems integration and implementation experience of EY teams along with practical AI and quantum technology solutions from Sandbox AQ, according to a press release issued separately from the Deloitte announcement.
Dave Burg, EY Americas Cybersecurity Leader, said in a statement, "One of the significant business implications of quantum computing is the challenge that today's encryption technologies face. Businesses and consumers use encryption to protect information and business processes in many ways – all of which will need to be upgraded to be effective. This is an important and urgent business issue that must be addressed to make a better and more secure working world in a time of unprecedented cyber risk. This alliance with Sandbox AQ will offer the opportunity to combine quantum's leading-edge experience of science and technology with the vast consulting and business transformation experience offered by EY teams."