Amazon (AMZN, Financial) has officially entered the quantum computing arena by unveiling its own quantum chip named "Ocelot." This development places Amazon alongside tech giants like Google and Microsoft in the fiercely competitive cloud computing sector, which is seen as the next frontier in technology.
Amazon, known for its e-commerce dominance, made a pivotal shift in 2006 with the launch of Amazon Web Services (AWS), now a $100 billion business and a key component of Amazon's over $2 trillion market value. Quantum computing is viewed by Amazon as the next major growth area for its cloud services.
Oskar Painter, AWS's Director of Quantum Hardware, emphasized the strong business rationale for Amazon's involvement in quantum computing, aligning with their cloud access model. Quantum computing is anticipated to offer significant returns, with McKinsey projecting the market to reach $173 billion by 2040.
Gene Munster from Deepwater Asset Management highlighted the potential for quantum computing to become a powerful segment within AWS, capable of solving complex problems in fields like drug development and cybersecurity, thus significantly boosting revenue.
Amazon's collaboration with Caltech, initiated in 2019, has resulted in the development of the "Ocelot" processor, showcasing advancements in error correction and scalability. This design, named after the Schrödinger's cat thought experiment, aims to reduce the resources needed for quantum error correction.
