Quantum computing stands at the frontier of technological innovation, poised to disrupt the very foundation of how we process information. In a world where advancements often feel incremental, quantum computing has the potential to revolutionize hardware and software, opening the door to unimaginable possibilities.
A few months ago we wrote about the important progress IONQ is making. Over the last few years, the once-abstract concept of quantum computing has transformed into a tangible reality. Companies like IONQ have been at the forefront of this technological revolution. In recent months, IONQ has made substantial strides towards commercializing quantum computing, asserting that it's no longer just a theoretical concept. However, IONQ isn't alone in this race. The quantum computing arena is bustling with various research labs and companies exploring different technologies and approaches. Among the frontrunners are industry giants like IBM and Honeywell, all vying to establish a quantum advantage over the next decade.
A report by the Boston Consulting Group highlights that early adopters of quantum computing stand to gain a disproportionate share of its value. This underscores the importance of being the first to offer a commercially robust quantum computing solution.
An excellent opportunity to delve into the developments of quantum computing is the IBM Quantum Summit 2023, held on December 4th. IBM, a key player in this arena, has recently unveiled significant updates. The introduction of the IBM Quantum System 2, after five years, signals a major leap in quantum processing power. Accompanied by the Quantum Software Kiss Kit 1.0 and a refined 10-year roadmap, IBM's announcements reinforce the progress the company is making. However, for us, the most important storyline is that IBM stated that we've entered the era of quantum utility.
IBM's affirmations not only validate IONQ's earlier statements but also emphasize the imminent commercialization of quantum computing. As we witness this transformative period, it's evident that two technological revolutions—Generative AI and quantum computing—are set to reshape our world more profoundly in the next decade than computers and traditional software have in the past 40 years.
Now, as these companies take the necessary steps towards commercialization and mass production, the race for quantum supremacy intensifies. Will Honeywell, IBM, or IONQ emerge as the ultimate victor? In this race, don’t focus on the number of qubits. It's essential to recognize that the true measure lies in delivering clean, reliable output. In the current phase, a high number of cubits might be a red flag for the stability of the quantum output. Presently, ion trap-based technology, embraced by both IONQ and Honeywell, seems to be taking the lead in this pursuit in our view. We like IONQ, because it is the only pure play in this sector that is close to commercialization.
Disclaimer: we hold IONQ shares.