QuTwo by Peter Sarlin: $380 Million for AI

QuTwo Reaches a Valuation of $380 Million

QuTwo, the Finnish artificial intelligence lab founded by Peter Sarlin, former CEO of Silo AI, has recently achieved an impressive valuation of €325 million, approximately $380 million. This milestone was reached through an angel funding round that raised €25 million, or $29 million. This success reflects the growing interest in AI, quantum computing, and sovereign technologies, particularly in Europe.

QuTwo OS: A Hybrid Approach

Although the name QuTwo suggests a focus on quantum computing, the company is not limited to this field. Its flagship product, QuTwo OS, is an orchestration platform that directs tasks to classical, quantum, or hybrid architectures. This approach allows for the use of classical chips to simulate quantum behavior, thus providing a more reliable solution for businesses. The idea is that enterprise use cases are often better served by "quantum-inspired" computing.

AI at the Core of QuTwo's Strategy

QuTwo primarily focuses on enterprise artificial intelligence. The company has already secured around $23 million in revenue through partnerships with retail giants like Zalando, for which it has developed AI assistants. Peter Sarlin, Executive Chairman of QuTwo, emphasizes that AI remains the priority, while quantum is viewed as a new type of computing. "AI is the North Star we will continue to steer towards. Quantum is just a new type of computing," he stated.

Comparison with Other Companies

A momentum is building around AI labs based in Europe, with several of them becoming unicorns overnight. For instance, former DeepMind researcher David Silver recently secured $1.1 billion for his new venture, Ineffable Intelligence. Although QuTwo's valuation and funding round size are modest in comparison, they allow the company to pursue its roadmap with less pressure. According to Sarlin, this decision was also influenced by his experience with Silo AI, which was acquired by AMD for $665 million in 2024.

Thoughtful Funding Strategy

Unlike other companies that opt for massive funding rounds, QuTwo has chosen a more measured approach. Until recently, QuTwo was entirely funded by Sarlin's family office, PostScriptum. Sarlin decided not to accept venture capital funding for the time being, preferring an angel round. This decision aligns with a long-term vision, with a horizon of five to ten years, to build a leading global AI company from Europe.

Support and Expansion in Europe

QuTwo enjoys significant support in Europe, particularly due to the interest in local technological solutions in the face of American giants. The company has recently expanded its operations in Sweden and has recruited around 50 scientists specializing in quantum and AI. Among QuTwo's angel investors are influential figures such as Yuri Milner, Xavier Niel, Nico Rosberg, Dieter Schwarz, and Niklas Zennström. These investors could open doors across Europe, facilitating QuTwo's growth.

Connection with IQM and Future Ambitions

QuTwo's connection with IQM, the Finnish quantum company poised to go public, underscores the company's commitment to the quantum era. Sarlin and his team firmly believe that Europe must play a key role in the development of AI for the next technological paradigm. "The question for repeat founders like [us] is how can we have an even greater impact," Sarlin said. In the short term, QuTwo aims to make a significant impact by supporting ambitious research and development projects in Europe.

Other Commitments of Sarlin

Sarlin is also involved in other initiatives. For example, NestAI, another company where he serves as Executive Chairman, raised approximately $115 million in a funding round led by the Finnish sovereign fund and Nokia. Additionally, he is an investor in Yann LeCun's Ami Labs, which raised $1.03 billion, and in the Anglo-American venture capital firm Recursive Superintelligence. However, he has not seen a billion-dollar round as suitable for QuTwo—nor venture capital money, at least for now.