Sandbox AQ Acquires Cryptosense

Post-Quantum Cryptography for Enterprises

Image: Cryptosense team (2021)

Hey Everyone,

This is going to read more like a traditional PR, and the I think it’s pretty important news.

Sandbox AQ is a startup to watch at the intersection of Quantum computing, cybersecurity and A.I. This is not a sponsored post, but Sandbox AQ is of particular interest to me in my overreaching coverage of A.I., the future and the QC space.

SandboxAQ is an enterprise SaaS company combining AI + Quantum tech to solve hard problems impacting society.

Cryptosense, based in Paris, is a pretty major company in cybersecurity. Cryptosense is a leading platform for cryptography lifecycle management.

By integrating in CI/CD, it finds compliance violations and vulnerabilities in your encryption and key-management, it lets your Devs self-serve the fixes, and auto populates an inventory so you’re always ready for tomorrow, according to its LinkedIn.

Sandbox AQ’s solutions include post-RSA cybersecurity modules that migrate enterprises to higher levels of security. These SandboxAQ modules enable post-quantum cryptography (PQC) in line with the new standards that are now emerging in this field. 

SandboxAQ (TechCrunch) just announced it has acquired Cryptosense, a French cryptography company. Terms of the deal were not disclosed. 

However it’s a relatively big deal since Cryptosense already has an established client and customer base. Cryptosense is used by leading technology and financial services organizations and is a fellow NIST NCCOE partner.

Why is Sandbox AQ so Important?

• Sandbox AQ has funding directly from the CIA’s own Venture Capital Arm (Bloomberg).

• Jack Hidary (interview with Classiq), who was formerly the director of AI and quantum at Sandbox and is a longtime X Prize board member, now runs the company.

• According to my source, the acquisition is part of SandboxAQ’s larger Strategic Investment Program, which invests in AI + quantum tech (AQ) startups to grow and support the quantum ecosystem.

• Recently, SandboxAQ invested in evolutionQ and will soon announce a third investment.

Quantum Cryptography (PQC)

As you may already know, adversaries are already engaged in SNDL attacks to steal encrypted data for decryption when quantum computers become available.

Both SandboxAQ and Cryptosense were developing similar technologies to help companies migrate to Post-Quantum Cryptography (PQC) and protect their data, so the M&A makes perfect sense.

Also, both SandboxAQ and Cryptosense were among only 12 tech companies (e.g., AWS, Dell, MSFT, Cisco, etc.) chosen by NIST for its National Cybersecurity Center of Excellence, which is developing model PQC migration strategies and hardware/software solutions. 

So the intersection of cybersecurity, A.I. and Quantum technology is really heating up.

With Cybersecurity growth booming, Sandbox AQ is well positioned with this acquisition. This is going to be a B2B gold-mine for Sandbox AQ to help the U.S. combat cybersecurity threats from malicious actors who may be working from places like North Korea, China and Russia.

The acquisition of Cryptosense complements and accelerates the deployment of SandboxAQ's Post-Quantum Cryptography (PQC) solutions to corporations and government institutions worldwide. SandboxAQ's cybersecurity products enable large enterprises to scale cryptography management across their IT infrastructure, providing CISOs with a single, 360° view of how encryption is used throughout the enterprise – a critical first step in migrating to PQC.

AI Meets Quantum: The AQ Era is Here

• SandboxAQ’s acquisition comes just weeks after the company unveiled its Strategic Investment Program and initial investment in evolutionQ.

• Not only has Alphabet spun out Sandbox AQ, they themselves now are also looking at related startups. With the SandboxAQ SIP, Sandbox AQ are themselves investing in the themes that connect with AI + Quantum (AQ) technologies (Sandbox AQ blog). These include quantum communications, quantum sensing, quantum computing and quantum algorithms and simulation. 

1. Quantum Communications

2. Quantum Sensing

3. Quantum Computing

4. Quantum algorithms and simulation

From a macro standpoint as Quantum Insider notes as well, this is rather important for the context of the geopolitical unrest we have been witnessing.

This migration to stronger cybersecurity is important for critical infrastructure sectors such as: financial services, technology, energy, biopharma, logistics, and government.

Jack on the Acquisition

“Rapid advances in quantum computing and AI challenge the effectiveness and performance of existing cryptography-based cybersecurity solutions. The combined leadership, talent, and expertise that SandboxAQ and Cryptosense bring to the marketplace accelerates the deployment of more effective cryptography solutions to protect the world against the security threats of today and tomorrow,” said Jack D. Hidary, CEO of SandboxAQ.