AI Startup SandboxAQ Seeks Funding at Over $5 Billion Valuation

SandboxAQ, a startup spun off from Alphabet Inc., is seeking to raise new equity funding at a valuation of more than $5 billion, according to people with knowledge of the matter.

The company is in discussions with prospective investors, said the people, who asked not to be identified because the talks are confidential. The more than $5 billion valuation figure represents a pre-money basis, meaning it doesn’t include the sum that is raised. Terms of the transaction haven’t been finalized.

A spokeswoman for the Palo Alto, California-based startup declined to comment.

The company, which is developing artificial intelligence ...