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A year of strong funding coupled with sturdy underlying fundamentals and significant technological advances reflected strong momentum in quantum technology (QT).

Updated McKinsey analysis for the third annual Quantum Technology Monitorreveals that four sectorschemicals, life sciences, finance, and mobilityare likely to see the earliest impact from quantum computing and could gain up to $2 trillion by 2035 (see sidebar What is quantum technology?).

Private and corporate funding for quantum technology start-ups in pursuit of that value, however, took a notable dip. Investments decreased 27 percent from the previous year, with the biggest drop in quantum sensing start-ups. This decline, however, was smaller than the 38 percent decline in all start-up investment worldwide. Notably, the majority of funding (62 percent) went to companies founded five or more years ago, reflecting a shift in investments toward more-established and promising start-ups, with a focus on scaling them.

In contrast to the private sector, public investments increased more than 50 percent over 2022, making up almost a third of all investments in quantum technology. A range of countries, led by Germany, the United Kingdom, and South Korea, have announced significant new funding for QT development, bringing the global public funding total to date to about $42 billion.

Underscoring this momentum was continued strong growth in QT foundations. There was a wave of new or enhanced offerings (for example, start-ups that made their quantum computing accessible through the cloud) and significant technological advancementsespecially in quantum error correction and mitigationas well as a small increase in patents filed. In addition, we found a notable increase in quantum technology programs offered by universities, with the European Union taking the lead in the number of graduates in QT-related fields.

In this article, well go into these and other findings in greater detail (for more on the research, see sidebar About the Quantum Technology Monitor research).

In 2023, $1.71 billion was invested in QT start-ups, which represents a 27 percent decrease from the all-time high of $2.35 billion in 2022 (Exhibit 1). Nonetheless, the decrease is smaller when compared to the 38 percent decrease for all start-ups globally. The slowdown in the number of new QT start-ups founded continues (13 in 2023 versus 23 in 2022). Deal sizes have decreased as well, with the average deal size being $40 million in 2023 compared to $105 million in 2022 and $107 million in 2021. In line with this development, deal counts dropped to 171 in 2023 from 206 in 2022.

There are several factors causing the decrease in private investment into QT, including a significant shift in focus toward generative AI as well as lingering perceptions of QT being a long-term technology whose potential in various sectors is still being understood and evaluated.

Public funding for quantum technologies, on the other hand, jumped more than 50 percent over 2022. While China and the United States have previously dominated QT public investment, new announcements from Australia, Canada, Germany, India, Japan, the Netherlands, South Korea, and the United Kingdom reflected a growing realization among a broader range of governments of the importance of QT; South Korea and the United Kingdom, in particular, made significant increases to their funding levels (Exhibit 2).

Most of these national initiatives aim to establish technological leadership and sovereignty and spur private investments for quantum technology development. For example, the aim of the United Kingdoms National Quantum Strategy, which includes $3.1 billion in public funding over ten years, is not only to allow the United Kingdom to be a leading quantum-enabled economy but also to generate $1.3 billion in private investment in quantum technologies.

Where did the funding go? The vast majority of investments have been in US companies (more than two times the amount compared to the next country), followed by companies in Canada and the United Kingdom. The majority of venture capital funding went to scaling up established start-ups, with more than 75 percent of the total investment value going to series B or later funding rounds. This suggests the establishment of more-mature technological platforms for quantum computing and signals investors potential risk aversion to early-stage start-ups and unproven technologies or approacheswhich also partially explains the 43 percent drop in new start-ups compared to 2022.

Talent development took a notable step forward in 2023, reflecting a positive focus on building QTs foundations. There were 367,000 people who graduated in 2023 with QT-relevant degrees. Meanwhile, the number of universities with QT programs increased 8.3 percent, to 195, while those offering masters degrees in QT increased by 10.0 percent, to 55. The European Union and the United Kingdom have the highest number and density, respectively, of graduates in QT-relevant fields. This surge helps explain why scientists from EU institutions contributed most often to quantum-relevant publications.

Building off of this talent and these investments to generate value is still a challenge because of limited access to state-of-the-art hardware and infrastructure, limited awareness and adoption of quantum technologies, and a lack of interdisciplinary coordination (such as between academia and industry) required to bring technologies to market. Collaboration between industry, academia, and government is essential to accelerating development of quantum technology to industrialize technology, manage intellectual property, and overcome talent gaps.

To address this issue, innovation clusters are emerging worldwide. These clusters are coordinated networks of partnerships between researchers, industry leaders, and government entities that contribute to the technological advancement of quantum technologies and drive regional value creation (Exhibit 3).

Most clusters share the following elements:

Developing and scaling such regional innovation ecosystems (including research consortiums) will be a determining factor for achieving wide adoption and commercialization of quantum technology.

The past year marked continued advances for all quantum technologies, with a range of enhanced and new QT offerings coming to the market. One advance was the transition from the NISQ era to the FTQC era. Other key breakthroughs included the following:

For the full set of insights and data, download the entire Quantum Technology Monitor.

Read more here:
Steady progress in approaching quantum advantage | McKinsey - McKinsey

BERKELEY, Calif., April 23, 2024 (GLOBE NEWSWIRE) -- Rigetti Computing, Inc. (Nasdaq: RGTI) (Rigetti or the Company), a pioneer in full-stack quantum-classical computing, announces the sale of a Novera quantum processing unit (QPU) to Horizon Quantum Computing. This marks the Companys third sale of a Novera QPU, and is the Companys first QPU located in Singapore. The Novera QPU will be installed in Horizon Quantum Computings new hardware testbed in Singapore, and will be Horizons first quantum computing system. The system is expected to be installed by early 2025.

The system will integrate Horizons software stack, Triple Alpha, and Quantum Machines OPX1000 processor-based quantum controller.

The 9-qubit Novera QPU is based on the Companys fourth generation Ankaa-class architecture featuring tunable couplers and a square lattice for denser connectivity and fast 2-qubit operations. The Novera QPU is manufactured in Rigettis Fab-1, the industrys first dedicated and integrated quantum device manufacturing facility.

We are witnessing the emergence of a vibrant on-premise quantum computing market. Quantum computing researchers need hands-on access to quantum technology to gain a deeper understanding of how to work towards useful quantum computing. We launched the Novera QPU to address this need and we are thrilled that our longtime partners at Horizon selected our hardware to advance their quantum computing journey, said Dr. Subodh Kulkarni, Rigetti CEO.

Tight integration between hardware and software will be necessary for quantum computing to reach its full potential. Thats why we have established a testbed for integrating our software development tools with quantum computing systems," said Dr. Joe Fitzsimons, CEO at Horizon Quantum Computing. "We are delighted to work with our longtime partner Rigetti on the first testbed system, which will be powered by the Novera QPU. While we may be one of the first quantum software companies to embrace on-premises quantum computing, I doubt that we will be the last.

The Companys first two Novera QPU sales were to leading US government labs the Superconducting Quantum Materials and Systems Center (SQMS) led by Fermilab, and the Air Force Research Lab (AFRL).

About Rigetti Rigetti is a pioneer in full-stack quantum computing. The Company has operated quantum computers over the cloud since 2017 and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. The Companys proprietary quantum-classical infrastructure provides high performance integration with public and private clouds for practical quantum computing. Rigetti has developed the industrys first multi-chip quantum processor for scalable quantum computing systems. The Company designs and manufactures its chips in-house at Fab-1, the industrys first dedicated and integrated quantum device manufacturing facility. Learn more at http://www.rigetti.com.

Media Contact press@rigetti.com

Cautionary Language Concerning Forward-Looking Statements Certain statements in this communication may be considered forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Companys ability to achieve milestones, technological advancements, including with respect to its technology roadmap, help unlock quantum computing, and develop practical applications; the ability of the Company to obtain government contracts successfully and in a timely manner and the availability of government funding; the potential of quantum computing; the ability of the Company to expand its QPU sales; the success of the Companys partnerships and collaborations; the Companys ability to accelerate its development of multiple generations of quantum processors; the outcome of any legal proceedings that may be instituted against the Company or others; the ability to maintain relationships with customers and suppliers and attract and retain management and key employees; costs related to operating as a public company; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the Companys estimates of expenses and profitability; the evolution of the markets in which the Company competes; the ability of the Company to implement its strategic initiatives, expansion plans and continue to innovate its existing services; the expected use of proceeds from the Companys past and future financings or other capital; the sufficiency of the Companys cash resources; unfavorable conditions in the Companys industry, the global economy or global supply chain, including financial and credit market fluctuations and uncertainty, rising inflation and interest rates, disruptions in banking systems, increased costs, international trade relations, political turmoil, natural catastrophes, warfare (such as the ongoing military conflict between Russia and Ukraine and related sanctions and the state of war between Israel and Hamas and related threat of a larger conflict), and terrorist attacks; and other risks and uncertainties set forth in the section entitled Risk Factors and Cautionary Note Regarding Forward-Looking Statements in the Companys Annual Report on Form 10-K for the year ended December 31, 2023 and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements other than as required by applicable law. The Company does not give any assurance that it will achieve its expectations.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fe334fa3-a491-4e8c-ab3e-375b1af2c621

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Rigetti Computing Delivers Novera QPU to Horizon Quantum Computing for Singapore-Based Hardware Testbed - GlobeNewswire

NVIDIA has announced that Japan's new quantum supercomputer will be powered by NVIDIA platforms for accelerated and quantum computing.

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Japan's National Institute of Advanced Industrial Science and Technology (AIST) is building a hybrid cloud system of quantum computers and supercomputers called ABCI-Q. Quantum computers are still capable of making a lot of errors if they're operating solo, with supercomputers needing to solve the mistakes and make those complex operations smoother.

NVIDIA is providing the AI GPUs for the new ABCI-Q quantum supercomputer and quantum computing software through its cloud service. NVIDIA will provide over 2000 of its H100 AI GPUs in 500+ nodes interconnected by NVIDIA Quantum-2 InfiniBand, the world's only fully offloadable, in-networking computing platform.

ABCI-Q will enable high-fidelity quantum simulations for research across multiple industries. The high-performance, scalable system is integrated with NVIDIA CUDA-Q, an open-source hybrid quantum computing platform with powerful simulation tools and capabilities to program hybrid quantum-classical systems.

Tim Costa, director of high-performance computing and quantum computing at NVIDIA, said: "Researchers need high-performance simulation to tackle the most difficult problems in quantum computing. CUDA-Q and the NVIDIA H100 equip pioneers such as those at ABCI to make critical advances and speed the development of quantum-integrated supercomputing".

Masahiro Horibe, deputy director of G-QuAT/AIST, said: "ABCI-Q will let Japanese researchers explore quantum computing technology to test and accelerate the development of its practical applications. The NVIDIA CUDA-Q platform and NVIDIA H100 will help these scientists pursue the next frontiers of quantum computing research".

ABCI-Q is part of Japan's quantum technology innovation strategy, where the country will create new opportunities for business and society to benefit from quantum technology. This includes AI, energy, biology research, and more.

Read more here:
NVIDIA is helping Japan build their bleeding-edge ABCI-Q quantum supercomputer with HPC and AI - TweakTown

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AI stocks have overshadowed other emerging technologies, including quantum computing stocks. However, it is only a matter of time before quantum computing stocks blow up, with BCC Research, forecasting the market to grow at a CAGR of 48.1% from $713.4 million in 2022 to $6.5 billion by 2028.

Furthermore, quantum computing enables businesses to solve the most complex problems that cant typically be handled by traditional computers. However, most of the pure plays in the sector are speculative and are still years away from turning a profit, but the potential for disruption remains massive. Moreover, the synergy between AI and quantum computing promises profound benefits, enhancing AIs capabilities with unparalleled computational speed and efficiency.

With that said, here are three quantum computing stocks that offer excellent stability and upside potential.

Source: shutterstock.com/LCV

International Business Machines(NYSE:IBM) is one of the pioneers in the quantum computing sphere, playing a key role in the commercialization of the technology. IBMs goal is to effectively scale up quantum computing technology to solve complex problems, reduce error rates, and develop practical applications for industries. In doing so, the company has been developing sophisticated quantum computers that can operate in the most demanding conditions. Moreover, these are available in its cloud-based IBM Quantum Experience platform, which limits the need for physical hardware.

To further cement its role in the sector, IBM has developed the robust IBM Quantum System Two and the IBM Quantum Heron processor, which is known for its effective outcomes and high performance. Moreover, its powerful IBM Quantum Network collaborates with over 250 businesses globally to foster quantum innovation. Hence, IBM stock remains a key stakeholder in the quantum computing realm, and its efforts are likely to pay many dividends down the road.

Honeywell(NASDAQ:HON) is one of the largest American multinational conglomerates, with its tentacles spread across multiple areas, including aerospace, building technologies, and performance materials.

Its also actively investing in quantum computing, which could open up new and profitable business avenues in the not-so-distant future. Like IBM, Honeywell boasts a robust core business with diversified revenue sources that underscore the stability of its operations. On top of that, investing in HON stock comes with a solid dividend, which the company has been paying consistently over the past 21 years.

Therefore, it has the internal resources to continue funding its quantum computing ventures, such as Quantinuum, which recently achieved a whopping $5 billion valuation . Moreover, one of my fellow InvestorPlace colleagues, Michael Que, discussed Honeywells acquisition of Civitanavi Systems in a recent article. The Italian aerospace firms acquisition enhances Honeywells aerospace operations and presents opportunities to integrate these with its quantum computing capabilities.

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IonQ Inc.(NASDAQ:IONQ) is one of the few pure-plays in the quantum computing space, that claims to have developed the worlds most powerful quantum computer, with a quantum capacity of 32 qubits.

As we advance, the goal is to develop modular quantum computers that are scalable and customizable to meet diverse needs. This approach allows for greater flexibility and potentially more powerful quantum computing solutions, streamlining the process of upgrades and expansion.

Furthermore, the company has been growing at a rapid pace of late, with year-over-year (YOY) revenue growth at an impressive 98%. Additionally, it recentlyset its sales expectationsbetween $37 million and $41 million for the current year, slightly behind analyst expectations. Encouragingly, analysts expect the company to generate sales upwardsof $82.4 millionfor fiscal 2025, a considerable jump from this year. Also, Tipranks analysts expect almost a 99% upside from current price levels in IONQ, making it an excellent stock to pick at this time.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelors of science degree in applied accounting from Oxford Brookes University.

Continued here:
3 Quantum Computing Stocks to Buy Now: Q2 Edition - InvestorPlace

Researchers have demonstrated a scalable method for quantum computing by successfully showing quantum interference among photons using temporal encoding, offering a potential path toward more accessible quantum technologies. Credit: SciTechDaily.com

An international collaboration of researchers, led by Philip Walther at University of Vienna, have achieved a significant breakthrough in quantum technology, with the successful demonstration of quantum interference among several single photons using a novel resource-efficient platform. The work published in the prestigious journal Science Advances represents a notable advancement in optical quantum computing that paves the way for more scalable quantum technologies.

Interference among photons, a fundamental phenomenon in quantum optics, serves as a cornerstone of optical quantum computing. It involves harnessing the properties of light, such as its wave-particle duality, to induce interference patterns, enabling the encoding and processing of quantum information.

In traditional multi-photon experiments, spatial encoding is commonly employed, wherein photons are manipulated in different spatial paths to induce interference. These experiments require intricate setups with numerous components, making them resource-intensive and challenging to scale.

In contrast, the international team, comprising scientists from University of Vienna, Politecnico di Milano, and Universit libre de Bruxells, opted for an approach based on temporal encoding. This technique manipulates the time domain of photons rather than their spatial statistics.

Figure 1. Resource-efficient multi-photon processor based on an optical fiber loop. Credit: Marco Di Vita

To realize this approach, they developed an innovative architecture at the Christian Doppler Laboratory at the University of Vienna, utilizing an optical fiber loop (Fig.1). This design enables repeated use of the same optical components, facilitating efficient multi-photon interference with minimal physical resources.

First author Lorenzo Carosini explains: In our experiment, we observed quantum interference among up to eight photons, surpassing the scale of most of existing experiments. Thanks to the versatility of our approach, the interference pattern can be reconfigured and the size of the experiment can be scaled, without changing the optical setup.

The results demonstrate the significant resource efficiency of the implemented architecture compared to traditional spatial-encoding approaches, paving the way for more accessible and scalable quantum technologies.

Reference: Programmable multiphoton quantum interference in a single spatial mode by Lorenzo Carosini, Virginia Oddi, Francesco Giorgino, Lena M. Hansen, Benoit Seron, Simone Piacentini, Tobias Guggemos, Iris Agresti, Juan C. Loredo and Philip Walther, 19 April 2024, Science Advances. DOI: 10.1126/sciadv.adj0993

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Compact Quantum Light Processing: Time-Bending Optical Computing Breakthrough - SciTechDaily