MUFG Bank acquires 18% of Groovenauts in quantum push

MUFG Bank has acquired approximately 18% of the issued shares of Groovenauts in a multi-billion yen transaction, with the aim of further utilizing AI and quantum technology. This is the first direct investment in a quantum computing startup among the three Japanese mega banks. Groovenauts will become an equity-method affiliate of MUFG Bank.

Groovenauts is a software company with strengths in the use of AI and quantum technology, developing and providing IT services that support digital transformation (DX) of private companies and local governments, centered on their own advanced technologies such as AI and quantum technology. The main product, a SaaS-type software called “MAGELLAN BLOCKS,” is equipped with state-of-the-art technology and advanced mathematical models, such as realizing the use of quantum annealing (e.g., suitable for combinatorial optimization problems) as the first implementation world-wide.

“MAGELLAN BLOCKS” provides functions essential for problem solving in the form of blocks, such as integration and analysis of data necessary for decision-making, prediction and classification by AI, and optimization using quantum computers. Combining these blocks enables simple construction and operation of the system, easier technology introduction, more efficient system development, and faster verification improvement.

Through this alliance, MUFG Bank and Groovenauts will promote DX at MUFG Bank and strengthen the development of digital human resources, as well as advance risk management such as credit portfolios and market portfolios that will lead to optimization of Asset-Liability Management (ALM), refinement of analysis on reputation risk and operational risk, and efficiency improvement of clerical work and operations.

In addition, the partners will promote the application of Groovenauts’ quantum technology to the financial sector and aim for deploying solutions implemented through the demonstration and operation of advanced technology to other financial institutions.

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