QuTwo, a Finnish artificial intelligence laboratory founded by Peter Sarlin, the former CEO of AMD's Silo AI, has achieved a valuation of approximately $380 million following a $29 million angel funding round. The company raised €25 million, bringing its total valuation to €325 million. This investment underscores growing confidence in European technology, specifically in the sectors of artificial intelligence, quantum computing, and sovereign tech initiatives. Although the name QuTwo references quantum computing, the firm does not focus exclusively on quantum hardware. Its flagship product, QuTwo OS, serves as an orchestration layer that intelligently directs tasks across classical, quantum, or hybrid architectures. The company operates on the premise that many enterprise use cases are better served by quantum-inspired computing, which utilizes classical chips to simulate quantum behavior on more reliable infrastructure. While the ultimate goal is quantum integration, Sarlin emphasizes that current enterprise AI remains the company's primary focus. The business has already secured $23 million in committed revenue through design partnerships, including work with retail giant Zalando to develop AI assistants. Despite the success of other European AI labs raising massive sums recently, Sarlin opted for a more modest funding strategy to maintain long-term strategic freedom. He noted that his previous company, Silo AI, was acquired by AMD for $665 million in 2024, but he declined to pursue a similar rapid scaling path at that time. Similarly, QuTwo aims to operate with a five to ten-year horizon to build a globally leading AI company for the next paradigm, addressing the belief that Europe has yet to establish a dominant player in the current AI era. Prior to this round, QuTwo was funded entirely by Sarlin's family office, PostScriptum. However, following significant interest during a soft launch earlier this year, Sarlin decided to accept angel investment to capitalize on the geopolitical momentum favoring local European alternatives to US tech providers. The investor group includes notable figures such as Yuri Milner, Xavier Niel, Nico Rosberg, Dieter Schwarz, and Niklas Zennström, alongside founders from companies like Hugging Face, Supercell, and Wolt. These connections are expected to facilitate expansion and introductions across the European market. QuTwo is already scaling its operations, with recent expansion into Sweden and the hiring of approximately 50 scientists specializing in quantum and AI. The team includes experienced entrepreneurs such as Kaj-Mikael Björk, Sarlin's former co-founder at Silo AI, and Kuan Yen Tan, a co-founder of the Finnish quantum computing company IQM. Sarlin acknowledges the impending quantum era but argues that QuTwo's approach of driving ambitious R&D through classical and hybrid methods can deliver significant impact in the short term while preparing Europe for future technological shifts. The company plans to leverage its angel network to support these research initiatives in key sectors like automotive, life sciences, and gaming.