Quantum computing has been getting more attention in recent years as its promise becomes more palpable. Venture funding in the sector has hit new levels this year — perhaps thanks in large part to another red-hot sector: AI.
Quantum computing startups have already raised $1.5 billion in venture funding in 50 deals so far in 2024, according to Crunchbase data. That nearly doubles the $785 million raised last year in 67 deals, and surpasses the all-time high raised in 2022 of nearly $963 million in 77 deals.
Those totals include some massive rounds.
In January, Broomfield, Colorado-based Quantinuum — which was spun out of Honeywell in 2021 and merged with Cambridge Quantum Computing — locked up a $300 million equity fundraise at a pre-money valuation of $5 billion.
Four months later, Palo Alto, California-based PsiQuantum landed a financial package of $620 million from the Australian Commonwealth and Queensland governments to build a quantum computer at a location near Brisbane Airport in Brisbane, Australia. The round is actually a mix of equity, grants and loans.
Finally, in August, U.K.-based Riverlane — which specializes in quantum error correction technology — raised a $75 million Series C.
AI helping hand
While the excitement for quantum technology and computing — a level of computing much faster and superior to traditional computers that can perform many complex calculations simultaneously — has been growing for decades, the boost in funding numbers are likely attributable to tech’s latest darling.
Generative AI seems to creep into every industry, and quantum may be no different — especially considering what quantum computing could mean for breakthroughs and developments in AI.
While many see big promise in generative AI, its huge computing needs and energy consumption may hold those hopes back unless more efficiencies can be found in processing, and power and energy usage.
That’s one reason why billions of dollars have been poured into the data center sector. Big Tech players such as Amazon and Microsoft can’t build such centers fast enough as more computing power is needed for building large language models, and photonics technology is taking off in an effort to address the energy, performance and scalability challenges of AI data centers.
Quantum computing is likely seeing a similar tailwind. In theory, quantum computing could speed up the development of AI — as quantum is much more powerful than any supercomputer.
In addition, perhaps the biggest advantage could be power efficiency. Currently, quantum computing consumes vast amounts of energy to do its computations, and the computer must be kept at a temperature of absolute zero to work properly.
However, some studies suggest quantum computing could be as much as 100x more energy efficient than a typical supercomputer for a comparable calculation time. So, in theory, a less powerful quantum computer could still be superior to a supercomputer while also being more energy efficient.
While AI is certainly not the sole driver of the current heightened quantum venture funding market — quantum has a multitude of applications ranging from life sciences to navigation — it also would be unwise to discount its ever-widening impact.
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Illustration: Dom Guzman
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