SandboxAQ has certainly touted its own rapid rise to prominence since its March 2022 spinout from Alphabet. Instead, the company is embroiled in a legal dogfight, as a former executive has made explosive claims against CEO Jack Hidary. The startup develops both quantum computing and AI technologies. Though still unprofitable, it has raised just over $1 billion in total and is now valued at near $5.75 billion, per PitchBook estimates.
In its latest funding round in April 2023, SandboxAQ successfully secured over $450 million in a Series E investment led by notable backers including Ray Dalio, Horizon Kinetics, BNP Paribas, Google, and Nvidia. Eric Schmidt, then-CEO of Google, didn’t just invest; he took on the role of the startup’s chairman. This new cash infusion has helped cement SandboxAQ’s role as tech’s next big thing.
The settlement comes after legal disputes that the company now faces. Robert Bender, who served as Chief of Staff to Jack Hidary from August 2024-July 2025, has filed a wrongful termination lawsuit. Bender alleges that Hidary engaged in unethical practices by misusing corporate resources and investor funds to “solicit, transport, and entertain female companions.”
Bender’s lawsuit claims that the revenue estimates shown to the board were wildly exaggerated. As noted in the audit, these amounts were 50% more than what was presented to prospective investors. Specifically, he alleges with great conviction that Hidary unloaded tens of millions dollars’ worth of his stock. He did so at a substantial markup—all premised on these factually inaccurate, misleading figures.
In reply to the allegations, SandboxAQ’s attorneys have categorized Bender’s accusations as lies concocted to shakedown the company. They called him a “professional liar.” They asserted, too, that his case pleads baseless allegations for maliciously improper and extortionate purposes. Orin Snyder, a partner at our own litigation firm Gibson Dunn, who is representing SandboxAQ, sounded buoyant when discussing the company’s fortunes.
“This case is a complete fabrication. We look forward to debunking these baseless allegations and exposing the lawsuit — as detailed in our answer — for what it is — an opportunistic and extortionate abuse of the judicial process.” – Orin Snyder
The dispute touches on personal matters, with Bender’s complaint suggesting that his dismissal was part of a “malicious scorched earth campaign to destroy his reputation.” His lawyers have pointed to numerous blacked-out parts of the suit that they say describe lewd behavior while on work trips.
The lawsuit arrives as SandboxAQ is reportedly experiencing tremendous success at a technology startup. The company is likewise absolutely focused on quantum computing and generative AI. This strategy is gaining increased attention from investors and industry players, positioning the U.S. for success in this burgeoning sector.
Even with the chaos over the lawsuit, SandboxAQ has further successes on which to lean. The startup’s valuation and total funding underscore the market’s confidence in its potential. As goes this legal battle’s outcome, so too does its civic romance and operational vitality in perpetuity.
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