Quantum computing has gained more attention in recent years as its promises become more palpable. Venture capital funding in the sector has reached new levels this year – perhaps thanks in large part to another hot sector: AI.
Quantum computing startups have already raised $1.5 billion in venture capital in 50 deals so far in 2024, according to Crunchbase data. This 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.
These totals include massive spins.
In January, based in Broomfield, Colorado Quantum – which comes from Honeywell in 2021 and merged with Quantum computing at Cambridge — locked up a A fundraising of 300 million dollars at a pre-money valuation of $5 billion.
Four months later, based in Palo Alto, California PsiQuantum secured $620 million in funding from the Australian Commonwealth and Queensland governments to build a quantum computer near Brisbane Airport, Australia. The round is actually a mix of equity, grants and loans.
Finally, in August, the UK-based company Riverway – specializing in quantum error correction technology – raised a $75 million, Series C.
AI helping hand
While enthusiasm for quantum technology and computing – a level of computing much faster and superior to traditional computers capable of performing many complex calculations simultaneously – has been growing for decades, the increase in funding figures is likely attributable to the latest technology darling.
Generative AI appears to be permeating every industry, and quantum may be no different, especially considering what quantum computing could mean for AI breakthroughs and developments.
Although many see great promise in generative AI, its enormous computing requirements and power consumption could dampen those hopes unless more efficiencies can be found in processing, as well as power consumption. and energy.
This is one of the reasons why billions of dollars have been invested in the data center sector. Big Tech players such as Amazon And Microsoft We can’t build such centers fast enough, as more computing power is needed to create large language models, and photonics technology is taking off in an effort to address challenges in energy, performance and scalability of AI data centers.
Quantum computing is likely experiencing a similar tailwind. In theory, quantum computing could accelerate the development of AI, because quantum is far more powerful than any supercomputer.
Additionally, the biggest benefit might be energy efficiency. Currently, quantum computing consumes enormous amounts of energy to perform its calculations, and the computer must be kept at a temperature of absolute zero to function properly.
However, some studies suggest that quantum computing could be up to 100 times more energy efficient than a classical supercomputer for comparable calculation time. So, in theory, a less powerful quantum computer could still be superior to a supercomputer while being more energy efficient.
While AI is certainly not the only driver of today’s increased quantum venture funding market – quantum has a multitude of applications ranging from life sciences to navigation — it would also be unwise to neglect its ever-increasing impact.
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Illustration: Dom Guzman
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