SandboxAQ wins $500M award to accelerate AI-led materials discovery

The US Department of Commerce’s CHIPS Research & Development Office has announced the signing of a definitive agreement with California-based startup SandboxAQ for a USD 500 million award under the CHIPS and Science Act.

The award will accelerate the development and deployment of SandboxAQ’s AI-driven materials discovery platform to address critical semiconductor materials bottlenecks and supply chain risks, including developing new molecules and chemistries for alternatives to PFAS “forever chemicals,” advanced catalysts, rare earth-free magnets, and novel battery chemistries for semiconductor facility backup power systems, according to a media release. 

“This award will accelerate the discovery and innovation of critical materials and reduce our reliance on foreign-controlled materials,” said US Secretary of Commerce Howard Lutnick. 

“SandboxAQ’s large quantitative models are grounded in the engineering and physics needed to address the needs of our domestic semiconductor sector,” said Jack Hidary, CEO of SandboxAQ. “This award from the US Department of Commerce enables SandboxAQ to run advanced AI-driven programs across four critical material categories and then work with partners to scale the resulting formulations.”

In connection with the award, the Department of Commerce will receive a minority, non-controlling equity stake in SandboxAQ, the media release said. 

“By investing in AI-enabled materials discovery, we are advancing a capability that can identify novel chemistries and molecules for the semiconductor ecosystem, accelerate development timelines, and improve US supply chain resilience,” said Bill Fraunhofer, Executive Director of Semiconductor Investment and Innovation at the Department of Commerce.