Google and Microsoft Push Quantum Computing Boundaries Amid Investor Interest

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Mar 26, 2025

Google's quantum computing research is making significant strides, with a key executive predicting that practical applications, currently beyond the reach of modern computers, could be realized within five years. Julian Kelly, Google's Director of Quantum AI Hardware, suggests that quantum computers may soon conduct advanced physics research and generate new types of data. This optimism follows Google's recent breakthrough in error correction, a critical step in quantum technology development.

Meanwhile, Microsoft has introduced a new quantum computing chip named Majorana. CEO Satya Nadella emphasized the need to create a "new state of matter" for the chip's effectiveness. Google's most advanced quantum computer currently features 105 qubits, but experts believe practical applications require one million or more qubits. Quantum computers, unlike traditional ones that use binary bits, operate on qubits based on probability, enabling them to understand the universe at a quantum level.

Kelly envisions the first applications of quantum computing in simulating advanced physics, exploring areas beyond the capabilities of classical computers. He also speculates on the potential for quantum computers to generate data for AI training, though current AI models are incompatible with quantum systems. The technology could revolutionize data generation, marking a significant shift in computational capabilities.

Investor interest in quantum computing has grown, partly fueled by the recent AI investment boom driven by graphics processors from companies like Nvidia. Although Nvidia does not produce quantum processors, it recently hosted a Quantum Day event where representatives from leading quantum companies, Amazon, and Microsoft discussed the technology's potential.

Nvidia's CEO Jensen Huang, who initially expressed skepticism about the near-term viability of useful quantum computers, has since retracted his earlier statements, acknowledging the technology's complexity and potential. Despite the challenges, the industry remains optimistic about the transformative impact of quantum computing.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.