Paresh David

(Reuters) – Sandbox AQ is a company that has long-term plans to assist clients using quantum computing. On Tuesday, it announced that Alphabet Inc (NASDAQ:) Inc) had spun off and secured “nine figures of funding.”

Sandbox AQ, which has Eric Schmidt (ex-Google Chief Executive) as its Chairman and large financial backing makes it one of the most prominent startups pursuing software for quantum computers.

Although they are not reliable and expensive now, quantum computers can boost artificial intelligence’s power within 10 years by crunching information millions of times more quickly than supercomputers.

Sandbox AQ’s first sales were from software running on older computers. However, it tries to stop quantum machines unlocking standard encryption. This can expose sensitive communications. New York’s Mount Sinai Health System is one of its customers, as well as telecoms provider Vodafone (NASDAQ:) Mobile and SoftBank Mobile.

David Reich, Mount Sinai president, told Reuters that Sandbox will over the next 12 months assess encryption in health system messaging tools and suggest possible algorithm upgrades.

Schmidt stated in an interview, that it would take a lot of work to convert large companies to quantum-secure communication.

Sandbox CEO Jack Hidary stated that Sandbox was close to a deal to sell its quantum simulation software, which could accelerate the development of drug and material. He added that AI could be used to analyze quantum-based data to enhance medical imaging, and to enable navigation using magnetic fields rather than GPS satellites to create new projects.

Some of the team and inspiration for Sandbox originated at Alphabet in 2016. However, the Google parent won’t be a shareholder. Hidary indicated that he wants outside investors to accelerate growth. It will make use of cloud computing, such as Google Cloud or other providers.

Alphabet expressed its delight in Jack’s transition to an autonomous company and said that they were “pleased” to do so.

T. Rowe Price funds, Schmidt and Breyer Capital are among the investors. Marc Benioff, founder of Salesforce.com Inc, is a TIME Ventures investor. Hidary refused to disclose the exact amount, and said he preferred that the focus be on technology.

California company, Palo Alto has 55 employees. They will use the funding to help them hire.

Hidary stated that the company has prioritized diversity, including racial and gender, and is currently looking to recruit residents from University of California, Merced. This university is not well-known as being a technology powerhouse.