Peter Sarlin’s QuTwo reaches $380M valuation in angel round

QuTwo, a Finnish AI lab led by former AMD Silo AI CEO Peter Sarlin, has reached a valuation of €325 million (around $380 million) following a successful €25 million angel funding round (approximately $29 million). This achievement underscores the ongoing momentum for AI, quantum computing, and homegrown technology in Europe. While QuTwo's name references quantum computing, the company does not focus solely on that area. Its main offering, QuTwo OS, serves as an orchestration layer that efficiently allocates tasks across classical, quantum, and hybrid computing architectures. Sarlin emphasizes that many enterprise applications benefit from what he terms "quantum-inspired" computing, which utilizes classical chips to mimic quantum processes on dependable hardware. He predicts that enterprise AI will be the cornerstone of QuTwo’s strategy. The company has already secured around $23 million in committed revenue through collaborations with notable partners, including retail leader Zalando, for whom it has developed AI-driven assistants. Sarlin stated, “AI is the North Star that we will continue to aim for. Quantum is just a new type of compute.” The rise of European AI labs has been notable, with several reaching unicorn status in a short time. Recently, former DeepMind researcher David Silver raised $1.1 billion for his new venture, Ineffable Intelligence. Although QuTwo’s valuation and funding round may appear modest in comparison, they provide the flexibility to pursue its long-term vision without excessive pressure. Sarlin, who also served as executive chairman of Silo AI before its acquisition by AMD for $665 million in 2024, expressed a desire for QuTwo to focus on a 5- to 10-year roadmap rather than immediate financial influx. “Given that Europe did not succeed in building the leading AI company for this era, we are on a mission to establish one for the next paradigm,” Sarlin remarked. He acknowledges his support for European AI initiatives and investment in other ventures that have raised significant capital. However, he chose not to pursue a billion-dollar funding round for QuTwo, preferring to maintain independence from venture capital for the moment. Initially funded by his family office, PostScriptum, which also incubated another project, NestAI, QuTwo’s recent soft launch attracted considerable attention. This prompted Sarlin to opt for an angel funding round, leveraging the current geopolitical climate that favors local tech alternatives in Europe. The appetite for homegrown AI solutions is palpable, particularly in sectors where Europe has established players, such as automotive, life sciences, and gaming. Sarlin anticipates that QuTwo’s angel investors will help facilitate connections across Europe, including influential figures like Yuri Milner, Xavier Niel, and others from the startup ecosystem. With recent expansion into Sweden and a growing team of around 50 quantum and AI scientists, QuTwo aims to make a significant impact in ambitious R&D projects. The team includes experienced entrepreneurs, such as Sarlin’s former co-founder at Silo, Kaj-Mikael Björk, and Kuan Yen Tan, co-founder of the Finnish quantum company IQM, which is preparing for a public offering. Sarlin believes we are on the brink of entering the quantum era, and QuTwo is eager to lead the charge. “In the long run, it’s critical for Europe to establish the leading AI company for the next paradigm. In the short term, we can significantly influence ambitious R&D initiatives across the continent,” he concluded.