| | | The Answer to “What’s Next” in Computing | | By Jeff Brown, Editor, The Bleeding Edge | | Jeff’s Note: If you think the biggest AI gains are behind us, think again… | | Regular folks are turning out amazing profits using a quickfire trading strategy that’s rapidly gaining traction. Many have reported doubling their money – or more – in under 24 hours. | | That’s why, when I heard about this strategy, I knew I needed to learn more. So I went to veteran trader Larry Benedict for the answers. And together, on Wednesday, February 19, at 8 p.m. ET, we’re sitting down to show why these trades are so powerful… and how you can start taking part. | | So don’t miss The Overnight AI Gains Summit… Go right here to sign up with just one click. | | | | Last year was an incredible year in the quantum computing industry. | | But few would have known it. | | Developments in quantum computing were overshadowed by the incredible happenings in the world of artificial intelligence (AI)… | | And yet, quantum computing and AI are actually interlinked. | | Remember, 2024 culminated with Google’s announcement of Willow – its 105 quantum bit (qubit) quantum computing semiconductor – which had been more than four years in the waiting. | | We were entangled in Google’s latest announcement in The Bleeding Edge – Google’s Quantum Breakthrough last December… | | And for good reason: |
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| Willow can perform a computation in under five minutes that would take the world’s current fastest supercomputer – Frontier – 10 septillion years (1025 years) to accomplish. That’s: | | 10,000,000,000,000,000,000,000,000 years. | | The above number exceeds the age of the universe. | | To be clear, that is not a “reasonable” time frame… hence, clearly, quantum supremacy. |
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| Google’s new semiconductor itself is a massive development. | | But arguably more important was the announcement of new quantum technology… led by Google’s DeepMind division. | | Not Just an Expensive R&D Project | | In that December issue of The Bleeding Edge, I also wrote: |
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| AlphaQubit is designed to decode quantum computers, identify quantum computing errors, and correct those errors to improve the fidelity of a quantum computer. | | DeepMind, again, brings a breakthrough to solving a grand challenge. It’s the secret behind Google Quantum AI’s latest announcement. |
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| With the use of AlphaQubit, Google demonstrated something extraordinary. | | As Google increased the number of qubits in its quantum computing system (x-axis shown below), the error rate of the quantum computing system declined. | | | | Source: Google | | It’s an understatement to say that this symbolized a giant leap forward – towards a universal fault-tolerant quantum computer, which is quantum computing’s equivalent of artificial general intelligence (AGI) in the world of AI technology. | | This was the reason many publicly traded, small-cap quantum computing stocks rocketed higher. Institutional capital could easily see that quantum computing wasn’t just an expensive research and development project. | | Long time favorite of mine, Rigetti Computing (RGTI), skyrocketed more than 2,600% between October and early January this year. | | And while all the quantum computing stocks have pulled back since those highs… | | Rigetti is still up almost 1,500% since October. |
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| Companies to Watch | | Rigetti, like Google’s Quantum AI team, uses superconducting qubit-based quantum computers. | | In so many words, Google’s announcement was a validation of Rigetti’s approach. | | | | Rigetti’s Quantum Computer | Source: Rigetti | | Perhaps not surprisingly, 2024 was also a record year in terms of venture capital funding into quantum computing companies… | | Roughly $1.8 billion was invested into private quantum-computing-related companies. That’s more than double the investment levels of around $800 million that we saw in 2023 for the industry. | | More than half of the $1.8 billion was driven by a handful of deals, namely: | | About $620 million for PsiQuantum, which is building a quantum computer based on photonic qubits$300 million for Quantinuum, which is Honeywell’s quantum computing division, spun out and merged with Cambridge Quantum Computing$114 million for Q-CTRL, focused on quantum sensing and error correction $82 million on Riverlane, focused on quantum error correction | | Naturally, these are all companies to watch. | | One of the unique aspects of the quantum computing industry is that these companies tend to go public when they are still early-stage companies. | | Venture capital backers have preferred to take capital off the table and reduce their risk due to the heavy research and development costs and emerging technology. | | These latest developments have already spawned new investments in the industry. I fully expected this, and while we are only six weeks into the new year… it is happening quickly. | | Already, more than $500 million has been raised by quantum computing companies this year. | | That figure is largely driven by three major deals: | | A $230 million raise by QuEra, which is building neutral atom-based quantum computersAbout $100 million by Alice & Bob, a Paris-based superconducting quantum bit-based quantum computer, using a similar approach to Google and RigettiAnd $100 million for Quantum Machines , which is developing quantum control systems. | | One thing I’m certain of is that 2025 will be even bigger for quantum computing than 2024. | | The 2025 levels of investment in quantum computing will again set records. The progress from the last few months, in many ways, de-risks institutional investment in the sector and demonstrates a path toward a return on investment. | | Said another way, the technology is not theoretical. It is working now, improving quickly, already has utility in the real world, and shows a path toward universal fault-tolerant quantum computing. | | Aside from the incredible capital that’s been invested already this year, some exciting research was published just a few weeks ago by the team at Xanadu, a Toronto, Canada-based quantum computing company developing a scalable photonics-based quantum computer. | | The Other Aurora | | It may not look like much, but Xanadu announced Aurora, the world’s first networked photonics-based quantum computer. [NOTE: This is not to be confused with the Aurora supercomputer managed by the Department of Defense – the third fastest supercomputer in the world.] | | | | Source: Xanadu | | The entire quantum computing system is comprised of just four standard IT racks. Contained within are 35 photonics semiconductors, networked together using an incredible 13 kilometers of fiber optic cables. | | | | Source: Xanadu | | There are several advantages to a system like this. | | It is not necessary to use a dilution refrigerator to lower temperatures down to near absolute zero – colder than space. A photonics-based system can operate at room temperature, which is why the racks of equipment look similar to normal IT racks. | | The photonics semiconductors can also be manufactured at scale using existing semiconductor manufacturing technology. And the systems are modular and simple to network together, enabling nearly limitless computational power. | | Like all quantum computing systems, the biggest challenge at this stage will be improving the quantum error-correction technology for Xanadu’s Aurora, which is necessary to develop a fault-tolerant quantum computer. | | Xanadu’s latest progress is bullish for the industry. I also expect that Xanadu will be raising additional capital in the weeks ahead. It hasn’t had a formal venture round for more than two years and is overdue. If I had to guess, I’d say a round is in the works right now. | | Why is this worth tracking? | | Jeff’s IPO Predictions | | I expect at least two private quantum computing companies to access the public markets via an IPO this year. | | Awareness is high, institutional capital is suddenly interested, and the new economic and fiscal policies being implemented in the U.S. right now will bring interest rates down, which will be great for small caps and the IPO market in general. | | And there’s an even bigger motivation… | | For more than 10 years, many “experts” have been proclaiming the end of Moore’s Law. It hasn’t happened yet, and I’d like to be clear that it won’t happen. | | When silicon reaches its limits in terms of packing more transistors into a unit of space – and improving power efficiency per unit of compute – fault-tolerant quantum computers are going to accelerate Moore’s Law. | | And the immense efficiency and raw computational power of a universal fault-tolerant computer will be capable of running AI to solve the most computationally intense complex problems known. | | They’re the answer to “what’s next” in computing. We’ll still need the massive AI factories to train frontier AI models and to run those AI applications… | | And we’ll need quantum computers to use AI to crunch the most complex problems our human minds can define. | | Jeff | | |
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| Cristiano Roboto | | Companies are making major strides in bringing human-like agility to humanoid robots… |
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