1、JANUARY 2024 State of Quantum 2024Understanding the 2023 trends and outlook for 2024STATE OF QUANTUM 20242Table of ContentsExecutive Summary 4Overview 42022 key takeaways 52023/4 insights 5Key takeaways 6Key figures for the quantum industry in 2023 vs 2022 6Theme 1:No Quantum Winter,Just A Bit Colde

2、r 7Theme 2:Availability and Advancement of Quantum Computing in Research Centers 8Theme 3:Quantum and AI Show Early Potential 9Theme 4:Appreciation and Understanding of Quantum Potential is Growing 10Outlook for 2024 11Forewords 12IQM Quantum Computers Foreword 13OpenOcean Foreword 15Lakestar Forewo

3、rd 182023 quantum market updates 21Investment landscape:are we in a quantum winter or has it just got a bit colder?27Funding Trends In 2023 281.Geographical differences 30STATE OF QUANTUM 202432.VC funding is down overall 313.Government funding 34Quantum Computer Deployment and National Hubs 41Pract

4、ical Quantum Computing in National Hubs 42Quantum Computing Deployment and Collaboration 49Quantum and AI 50Use Cases-Emerging Quantum Utility 55Use Cases Recap of the 2022 Report 56Four key industries affected or enabled by quantum computing 59Quantum Computings Growing Industry Use Cases 66Conclus

5、ion 67Theme 1:Investment Landscape 68Theme 2:Quantum Computer Deployments and National Centers 69Theme 3:Quantum and AI 70Theme 4:Use Cases 71Outlook for 2024 and beyond 72Acknowledgements 78Contact 79STATE OF QUANTUM 20244 4Executive SummaryThe 2024 State of Quantum report,developed by IQM Quantum

6、Computers,OpenOcean,and Lakestar,in partnership with The Quantum Insider(TQI),is the latest research investigating the preparedness of business leaders towards quantum technology,analyzing senti-ment across major geographies and industry sectors.The quantum computing field is advancing rapidly with

7、important breakthroughs in quantum hardware and soft-ware rendering it an increasingly strategic asset for organizational infrastructures who consider investing in it.The report offers insights on how quantum-focused firms can bridge the existing divide between the pace and direction of quantum tech

8、nological development,and the immediate requirements from customers to explore alternative approaches to compute.We cover the current status of investment trends(prob-ing the question:are we in a quantum winter)and investor sentiment;the delivery of operational quantum comput-ers,both on-site and cl

9、oud-based;and the actual use of quantum computing by corporations,exploring indus-try-specific focus areas,introductory use cases,internal investments,as well as challenges and barriers.The report leverages data from the quantum market,and valuable discussions with thought leaders from the indus-try

10、 performed in Q4 2023(for more detailed information,please refer to the Acknowledgements).OVERVIEWSTATE OF QUANTUM 20245The 2022 State of Quantum report revealed a strong inter-est in commercial quantum computing with over 60 per-cent of respondents expecting commercial applications within the next

11、five years.Based on these responses,we identified and predicted dedicated roles(e.g.Chief Quantum Officer)for quantum technologies in private and public entities,backing the exploration of quantum computings practical applications and adoption while addressing key skills and talent shortages.We also

12、 iden-tified the importance of building out the quantum software stack,with two thirds of respondents considering soft-ware to be a main priority for quantum investment in the near future.Our survey confirmed that cybersecurity,finance,and healthcare are the sectors most likely to be most impacted b

13、y quantum computing,in some cases as a potential dis-ruptor,others as a threat to existing systems.Business leaders anticipated multiple benefits from quantum com-puting,such as solving new types of problems,enhanc-ing operational efficiency,speeding up and resolving complex issues,and reducing data

14、 processing time.Yet,the report revealed a potential disconnect between the immediate needs of quantum end-users and the practical potential of the technology.Cutting through the excitement was a concern about the costs of realistically utilizing quantum technologies,either for research or smaller-s

15、cale use cases.Overall,the 2022 report aimed to provide a general sen-timent on quantum technologies.Now we are a year fur-ther on,this new report takes the logical next step and digs into how early adopters are really exploring quantum computings potential.In 2023,quantum technologies continued the

16、ir advance beyond their theoretical statements to initial practicality,seeing startups transitioning from the lab to the market whilst we also saw physical full-stack deliveries of quan-tum computers emerging in national labs and quantum centers.In our report,we highlight the practical applications

17、of quantum technologies we see today,from personalized interviews of select thought leaders current and planned quantum activities.In the process,the report will shed light on the emergent use cases developing from this research.2022 KEY TAKEAWAYS2023/4 INSIGHTSSTATE OF QUANTUM 20246Key takeawaysKEY

18、 FIGURES FOR THE QUANTUM INDUSTRY IN 2023 VS 2022in 2023$1.2BVC investments50%Americas:-80%APAC:-17%EMEA:+3%Global quantum industry private investment declined Several new national quantum research centers demonstrating sovereign commitments to quantumx2Enterprise end-users interested in or pursuing

19、 quantum technologies$40BGovernment commitment over ten years50%Global technology private investment declineSTATE OF QUANTUM 20247Venture investments in quantum technology reached a high of over$2 billion in 2022,indicating strong investor confidence in this emergent market.However,by 2023,this inve

20、stment decreased by approximately 50%,prompt-ing discussions of a“quantum winter.”In reality,industry experts refute the notion of a quantum winter,suggesting that the decline aligns with overall macro venture capital trends and does not reflect diminishing faith in quantums potential.If anything,th

21、e downturn in private investments has started to be increasingly picked up by government backed funding commitments and contracts,bridging the gap in investor apprehension.Insights from experts confirm that despite reduced invest-ment rates,the quantum industry continues to progressalthough at a slo

22、wer pace.A need for tempered expec-tations is called upon with a focus on long-term research and development,understanding that the practical appli-cations of quantum computing could be still years away.Quantum technology remains a niche sector,accounting for less than 1%of total VC funding.So,while

23、 the quantum technology industry is adjusting after a period of height-ened investment,it is not entering stagnation,and indus-try insiders maintain a cautiously optimistic outlook for its future trajectory.No Quantum Winter,Just A Bit ColderTHEME 1 Broad consensus that there is no quantum winter,ju

24、st a deep tech market slowdown counter-balanced by government investment.Some interviewees echo concerns that early-stage quantum startups will struggle as they progress to series B and beyond.While experts timelines differ,quantum computing use cases that classical computing cannot handle remain po

25、tentially years away.Experts agree that companies should manage expec-tations,raise awareness,and prepare the workforce for quantum today to develop true quantum scalability.All experts agreed a growing sense of open knowledge and community contribution is present in the quantum industry:although mo

26、re transparency and quantum roadmaps are needed to realize quantums full poten-tial.WHAT EXPERTS SAIDSTATE OF QUANTUM 20248In 2023,we saw commercial efforts by stakeholders such as IONOS and T-Systems to make quantum computing available to business customers,integrating the tech-nology into their ex

27、isting data centers.These two promi-nent providers have joined forces with quantum startups like QMware and PlanQK and research institutes such as Fraunhofer Fokus and the University of Stuttgart to bring quantum computing into industrial use.As governments adopted an increasingly critical role in q

28、uantum technology,so did quantum national labs and research facilities across Europe,North America,and beyond,advancing its development from theoretical quantum research to initial practical application.But more importantly,these new quantum research cen-ters act as the hub for growing ecosystems in

29、 quantum technology,bringing together partnerships between pub-lic bodies,researchers,and industry.1.House of Quantum in Delft is a collaborative hub for advancing quantum computing in broadening access to cryogenic quantum computing.2.Sherbrooke Quantum Innovation Zone in Canada,backed by over$435

30、million,aims to leverage quan-tum technology for local manufacturing and tech businesses.3.The Israel Quantum Computing Center is on track to receive a full-stack quantum computer to support research into multiple quantum types.4.Quantum Basel,part of the uptownBasel campus in Switzerland,offers clo

31、ud access to IBM Quantums platform and houses IonQs 20 algorithmic qubits computer for advancing Industry 4.0 and the pharma-ceutical sector.5.The UKs National Quantum Computing Center(NQCC),opening in 2024 aims to promote cross-sec-tor quantum collaboration to spur growth in the UK economy.6.VTT Te

32、chnical Research Center of Finland has recently scaled its quantum computing resources to a 20-qubit system and announced a national strategy to reach 54 qubits by the end of 2024,focusing on micro-and nanotechnology.7.The Polish Pozna Supercomputing and Networking Center(PSNC)recently received two

33、optical quantum photonics systems from ORCA Computing to sup-port research in biology and chemistry with machine learning.Availability and Advancement of Quantum Computing in Research CentersTHEME 2STATE OF QUANTUM 20249WHAT EXPERTS SAIDArtificial intelligence experienced a surge in public and corpo

34、rate awareness in 2023,overshadowing quantum technologies in attention and investment.Namely,gen-erative AI,due to its immediate impact compared to the prospective value of quantum technologies,prompted business leaders and VCs to park quantum and focus on GenAI.Businesses were taken by surprise wit

35、h AI,and have been reminded about the importance of preparing for technical disruption.As interest in AI calms,decision makers need to ensure they dont overlook quantum.A shared sentiment is that quantum computing is not a replacement for AI or machine learning but a potential complement.Quantum cou

36、ld enhance AI by accelerating high-performance computing(HPC).Current AI technol-ogy may also assist in overcoming technical challenges in developing quantum computing on its path toward prac-tical use.The two,in combination,could open applications such as generative chemistry and digital twin simul

37、ations,with artificial intelligence to handle sequenced tasks(with ongoing adjustments)and quantum computing to be bet-ter suited for the probabilistic computations involved in these operations.Most interviewees agreed that Quantum Machine Learning should continue to be explored and high-lighted the

38、 potential for AI in helping us build useful QCs.However,AI is cannibalizing attention,investment and interest away from quantum computing.THEME 3Quantum and AI Show Early PotentialSTATE OF QUANTUM 202410Although there is a shared anticipation for quantum tech-nologies to unlock billion-dollar value

39、s across industries,this depends on their maturation and merit over purely classical and hybrid systems.Key challenges persist in enabling the adoption of quan-tum computing,such as data privacy issues through cloud access and practical algorithms to take advantage of this new paradigm of computing.

40、Quantum computing remains particularly promising for drug discovery,which could significantly reduce the time and cost of developing new drugs while increasing the success rate.Yet,experts caution that the journey to real-izing this potential is filled with technical challenges and open questions.In

41、 cybersecurity,the value arises from the market oppor-tunity to thwart quantum computings threat to existing encryption algorithms.Meanwhile,financial services could benefit from quantum computing in portfolio opti-mization,risk management,fraud prevention,and market simulation,with significant adop

42、tion barriers such as reg-ulatory compliance and approval persist.While quantum technology potential in use cases is prom-ising,questions remain unanswered.Quantum needs to become more practical through the development of prim-itives and testing of real-world use cases.Considering the cost of useful

43、 computation compared to classical solu-tions,quantum computing has a long path ahead,but its potential is worth it.Experts agree that advancing quantum computing use cases are not a sprint but a marathon.Appreciation and Understanding of Quantum Potential is GrowingTHEME 4WHAT EXPERTS SAID Experts

44、are aligned that near-term advantages could come from hybrid quantum systems,whilst industry players must realize quantum progress is not linear or predictable.Broad consensus that quantum chemistry and sim-ulation,and security and cryptography are the most promising areas.Yet,regulatory compliance

45、and prac-ticality remain key challenges.While cautioning around the timing and business value,quantum computing on financial applications holds great potential.Universally recognized by all experts,adopting and integrating quantum technologies is more complex than just error-correction or scalabilit

46、y.Several interviewees noted useful primitives and solu-tions to concerns over data security/transferring sen-sitive information are issues that must be addressed to make quantum computing practical.While details differed,broad alignment that the quan-tum industry needs clear metrics to compare quan

47、-tum performance against classical computing while articulating clear use cases for quantum computing is required for the technology to succeed.STATE OF QUANTUM 202411Going into 2024,it is clear that there continues to be a gap between current business needs and the immediate capabilities of many qu

48、antum computing systems.End users are looking for transparency in quantum computing roadmaps,and continued delivery of milestones is essen-tial for building confidence and managing expectations.We will also begin to witness universities launch quantum computing programs and certificates,aiming to ad

49、dress skill and talent shortages called on by businesses,namely in collaboration with national research centers.Outlines of adoption barriers to quantum computing will also evolve beyond fault-tolerance and scalability into challenges such as data security and cost per functional computation hour to

50、 be solved.More primitives and prac-tical algorithms for industry players to explore quantum computation beyond theories and research questions must be implemented to realize the potential of this new paradigm of computing.2024 will be,by exception,defined by five areas:1.On-Premise versus Cloud Acc

51、ess:Concerns about data security and privacy regulations drive the need for on-premise quantum computing over cloud-based solutions,especially in sectors like finance,defense,and healthcare.2.Quantum Computings Cost:The high cost of quan-tum computing time compared to other high perfor-mance computi

52、ng systems poses a barrier to wide-spread adoption,although industries with long R&D timelines are less deterred by short-term costs.3.More teams in organizations will get quantum ready:Organizations are proactively developing their teams quantum readiness through targeted problem-solv-ing approache

53、s and are preparing for the eventual advancement of quantum technologies.4.The excited state of quantum:Sustaining interest in quantum technology requires strategic communi-cation and support,as quantum advantage remains a distant but significant milestone that necessitates ongoing enthusiasm and in

54、vestment.5.Hybrid Solutions Now and Pure Quantum Comput-ing Later:The focus on delivering immediate value through quantum-hybrid systems reflects a strategic approach that balances current business needs with the anticipated potential of pure quantum computing.Outlook for 2024WHAT EXPERTS SAID Hybri

55、d-quantum solutions are a growing pragmatic approach to leveraging quantum technologies.Interviewees are also concerned with the conflict between the long development timelines for quan-tum technologies and shareholder expectations and uncertainty of immediate business value.Yet,a shared recognition

56、 exists that being quan-tum-ready is crucial for companies to not fall behind while being cognizant of the technology being in the exploratory phase.STATE OF QUANTUM 202412ForewordsSTATE OF QUANTUM 202413We have all heard renewed discussions about a quantum winter following the economic uncertainty

57、and cautious investments that characterized 2023.However,amidst that concern,we should recognize that the quantum community is making strong progress and that declin-ing investments are a global phenomenon,not limited to quantum.This is what makes me optimistic.Whilst there is a long way to go,and w

58、e must remain patient,there has been no slowdown on the technological side.Change will not come overnight but it will come in stages.In the past year,weve seen a strong increase in the com-putational powers of quantum computers and examples of quantum supremacy experiments.1 Furthermore,we have seen

59、 new and more efficient ways to implement error-correction.In these instances,quantum machines have solved calculations or run simulations that high-per-formance computers were practically unable to complete.With more and more companies laying out their quantum roadmaps and following published roadm

60、aps effectively customers are confident about how the technology works and how its being developed.As we make steady progress on multiple fronts,the next stage will be to create machines that can solve commercial problems at scale.ADOPTION OF QUANTUM COMPUTINGComputing whether classical or quantum h

61、as always spent its infancy in the academic sector.When we look at the origins of classical computing,it all began with univer-sities and scientific institutions seeking to solve research problems.Similarly,when Tim Berners-Lee invented the World Wide Web whilst working at CERN,it was intended to al

62、low scientists across the world to share informa-tion automatically.2 I expect to see quantum computings 1Nature:IBM quantum computer passes calculation milestone2CERN,Accelerating Science:A short history of the Web3EuroHPC JU:One step closer to European quantum computing:The EuroHPC JU signs hostin

63、g agreements for six quantum computersdevelopment follow a similar path from the laboratory to the corporate boardroom.Today,we see a strong initial interest in quantum comput-ing from the scientific world as technical universities seek to solve challenging scientific problems.We are commit-ted to t

64、his development by providing an online learning platform and IQM Spark,a quantum computer produc-tized for universities.This is compounded by the fact that many of these universities are in possession of a high-per-formance computing(HPC)center to benchmark against,or use in combination with,quantum

65、 computers.We are already seeing the first wave of these HPC centers pur-chasing commercially available quantum computers.Indeed,early adopters of computing technology have always been those organizations working on long time scales:governments aiming to secure sovereignty or the R&D department of f

66、irms that need immense computing power,such as chemical or pharmaceutical companies.We see this trend in action with the European Commission purchasing six quantum computers for European HPC centers just this year.3 After the first wave of scientific HPC centers investing in quantum capabilities,we

67、will begin to see increased uptake among early adopters in govern-ment and R&D-intensive industries.HYBRID QUANTUM COMPUTINGWhen we chart the progress of quantum computing over the next decade,many people imagine large-scale,fault-tolerant machines.However,in the current Noisy Intermediate-Scale Qua

68、ntum(NISQ)era,we require con-ventional HPC systems to apply error correction.This is why hybrid quantum applications present such an excit-IQM Quantum Computers ForewordDr.Jan Goetz,CEO&Co-Founder at IQM Quantum ComputersSTATE OF QUANTUM 202414ing opportunity.Users can outsource very complex tasks t

69、o a quantum computer while using conventional HPC to handle the data processing.In the future,such a hybrid approach could also be the way to implement large-scale error correction.Were currently working with the VTT Technical Research Center in Finland to combine its quan-tum computer with LUMI,Eur

70、opes most powerful com-puter,with remote connections such as this representing a promising future for hybrid quantum applications.We see this use case for hybrid quantum computing in another key adoption sector:data centers.These centers have two types of problems to solve:the first are prob-lems in

71、volving huge quantities of data,such as processing high-frequency trading data to inform investment deci-sions.The other type of use case is very complex com-puting problems,such as molecular modeling for drug discovery or logistical optimization for flight paths.The latter is where quantum machines

72、 can shine,whereas the former is best suited for classical HPC methods,so we are focusing our HPC integration efforts on reflecting this development.Mainstream quantum adoption will be a smooth process but not an instant,black-and-white transition.We will pro-gess from scientific problem-solving to

73、R&D processes,such as discovering new drugs,and from these industry use cases into mainstream problems,like portfolio opti-mization.This is why were working with businesses,HPC centers,data centers,and governments to provide them a pathway to quantum advantage through our new IQM Radiance system,tak

74、ing them from a 54-qubit system to a 150-qubit machine in the near future.THE TALENT LANDSCAPEAnother silver lining to 2023 was the evolving talent land-scape and the arrival of Generation Z experts into the quantum computing industry.Five years ago,the quan-tum computing field was dominated by quan

75、tum physics professors at universities,but that is changing.Were now seeing professionals from non-quantum domains like electrical engineering and computer science contributing their invaluable experience designing large-scale classi-cal computers to the quantum industry.While quantum physicists rem

76、ain the primary talent base for quantum startups,the influx of process engineers,electrical engineers,software developers,and other pro-fessionals in adjacent industries adds credibility to the field and brings us closer to a fully-functioning quantum computer.However,with a changing talent base com

77、es new challenges for leaders.Effective management and mentoring across generations will be necessary to allow both new perspectives and hard-won wisdom to guide the field forward responsibly.LEVELING THE PLAYING FIELDWhile we see promising signs for quantum development,many quantum startups still f

78、ind it difficult to scale with-out support from governments and private investors.In order to enable the kind of fast growth weve seen in areas like AI,closer collaboration between government,private business,and other sources of funding is needed,espe-cially in Europe.Awareness is a major obstacle

79、for us to overcome in this space:for example,proving to stakehold-ers at technical universities how spin-off equity can drive success for the organization as a whole.While we must remain patient,I am optimistic about con-tinued progress in quantum computing through 2024 and beyond.With increased col

80、laboration between pub-lic and private capital,a growing talent pool from diverse technical backgrounds,and responsible leadership,we are making encouraging progress towards broad-based quantum adoption.STATE OF QUANTUM 202415OpenOcean ForewordEkaterina Almasque,General Partner at OpenOceanOllie Sel

81、lers,Senior Associate Data Scientist at OpenOceanQuantum computing has made great strides in the last few years,as evidenced by Google scientists using a 70-qubit Sycamore machine to make calculations instantly that would have taken classical supercomputers 47 years.4 However,investment in quantum h

82、as not been spread equally across the ecosystem.Last year,66%of busi-nesses we surveyed considered software development to be a main priority for quantum investment.5 While we have seen quantum software companies experience some success through 2023,such as Q-CTRL closing a Series B funding round at

83、$54 million or early-stage firm Algo-rithmiq raising$15 million for its Series A funding round,data reveals that VC investment in quantum computing startups from 2021-22 brought in only$98m for quantum software,compared to$362m for computers and proces-sors.6If we are to successfully commercialize q

84、uantum comput-ing,we cannot neglect quantum software.Investment in the quantum ecosystem is focusing far too heavily on the hardware layer and not enough on building out the soft-ware and middleware to build full-stack solutions.In our previous report,we encouraged organizations to start thinking st

85、rategically about how they will operate in the quantum era understanding how quantum software can and will be integrated into their existing stack.Without that understanding and investment into software,this missing layer will continue to hold us back from broad quantum adoption.To fully realize the

86、 potential of quantum computing,inves-tors have a once-in-a-lifetime opportunity to guide quan-4Arxiv-Cornell University:Phase Transition in Random Circuit Sampling,and The Telegraph:Supercomputer Makes Calculations in Blink of an Eye That Take Rivals 47 Years5IQM:State of Quantum 2022 Report6Dealro

87、om:The European Deep Tech Report 20237TechCrunch:Microsoft expects to build a quantum supercomputer within 10 years,and IBM Newsroom:IBM Debuts Next-Generation Quantum Processor&IBM Quantum System Two,Extends Roadmap to Advance Era of Quantum Utility8McKinsey Digital:Quantum technology sees record i

88、nvestments,progress on talent gaptum startups in strategic areas of the ecosystem and con-tribute to quantums strategic global growth.Profiting from this new paradigm of compute will require us to replicate the success of far-seeing investors in companies like Intel,Arm,and Nvidia.Achieving the mult

89、i-billion-dollar quan-tum companies of the future requires investors to focus their attention on building the nascent layers of the full quantum technology stack.We must ensure that we build the hardware,software,user interfaces,and human layers to work together as efficiently as possible.BUILDING G

90、LOBAL QUANTUM COMPANIESSeveral corporate giants with a global presence have made quantum investments in 2023.This includes Mic-rosoft launching the Azure Quantum Elements platform to accelerate scientific discovery by combining quantum,AI,and high-performance computing,and IBM unveiling Quantum Hero

91、n,a next-generation quantum processor.7 However,the tech giants are not the only place where quantum innovation can develop.It is startups not estab-lished corporations that have historically built the most disruptive solutions.There is an opportunity in the mar-ket to build truly international quan

92、tum companies:busi-nesses with customers,investors,and partners on every continent.Although 2022 saw investors commit$2.35 bil-lion to quantum technology startups,these startups often have a regional customer base and physical presence.8 In order to take these startups to the next stage,we must comm

93、it for the long term and think in time scales measur-ing in years and decades,not weeks and months.STATE OF QUANTUM 202416To better understand the quantum investment landscape,we should examine the previous paradigms of compute.From the launch of Intels 8086 processor in 1981,Intel pro-cessors and t

94、he x86 architecture dominated data centers for decades.With the increasing use of mobile devices came Arm and new battery-efficient,reduced compute chips.Then,Nvidia rose to prominence with the need for highly parallelized Graphics Processing Units(GPUs)to handle the exponential growth of AI workloa

95、ds.These successive shifts show how a single technology advance-ment can overturn the entire industry-as long as the soft-ware and hardware are co-designed for maximum effi-ciency.Take Nvidia as an example.As a private firm,it didnt raise a huge amount of capital but it then went on to raise$4 billi

96、on following its IPO.Before its IPO,GPUs were seen as primarily for gaming and graphics and AI was not a key focus area for Nvidia.Many private market investors missed out on Nvidia and high-potential returns because they didnt believe in AIs potential to alter the paradigm.Quantum computing will be

97、 a rapid paradigm shift and investors who dont invest now may not have the chance later.We can already see how the market is starting to transition into rapid commercial growth when we look at companies like IonQ,Rigetti,and Pasqal.In November 2023,IonQ announced it had reached its target of$100m in

98、 revenue,including Q3 revenue growth of 122%on the previous year,a whole quarter ahead of target.9 The mul-tinational quantum corporations of the future are being founded today.So,what is holding investors back?BARRIERS TO PRIVATE CAPITAL INVESTMENTPrivate investment in quantum at both the early and

99、 mature stages is resilient when compared to the overall 9Inside Quantum Technology News:IonQ hits$100 million in bookings,Rigetti revenue grows as commercial quantum market revs upinvestment landscape.The Quantum Insider(TQI)s data demonstrates that venture capital investment into quan-tum technolo

100、gy is in line with the broader venture capital market,at an approximate 50%decline in 2023 versus 2022.However,data from our internal investment platform,Sampo,also reveals that many investors who have tra-ditionally invested heavily in hardware technologies are reluctant to support quantum computin

101、g to the same degree.Sampo data has shown that,while there is no sig-nificant difference in average fund size between hardware and quantum computing investors,there are more than 5 times as many investors in hardware than in quantum.This suggests that the quantum ecosystem,across all layers of the s

102、tack,is lacking a diverse pool of potential investors.Some investors are cautious around quantum computing today in part due to a lack of clear understanding about how it will deliver value for end users.Most use cases today focus on benchmarking results against classical computing methods.However,w

103、ere not yet at the stage where quantum advantage is directly translatable into commercial use cases.Some major players in quantum feel we must move beyond the NISQ or ASIC quantum era,and are instead direct-ing their resources into pushing towards full,error-cor-rected machines However,we believe th

104、ere is value to be accrued along the way with more application-specific devices a development that will be driven by innovative startups striving towards more efficient design.Catalyzing more private investment means demonstrat-ing tangible use cases with clear commercial potential.This means active

105、ly partnering with enterprise end users across sectors like finance,energy,materials science,STATE OF QUANTUM 202417and healthcare.By co-developing quantum solutions for domain-specific problems together with corporate cli-ents,quantum startups can better understand commer-cial needs and design hard

106、ware/software accordingly.To make quantum machines a reality in the short to medi-um-term,we must change the rules of the game.We must focus on application-specific machines with more intelli-gent architectures.This will enable us to gain value from a smaller number of high-fidelity qubits,making us

107、e of quantum machines that are more feasible for a wide vari-ety of applications,such as IQM Spark,a 5-qubit super-conducting quantum computer,professionally designed and calibrated as a turnkey solution.REASONS FOR OPTIMISMHowever,theres no cause for pessimism.Achieving func-tional quantum computin

108、g and widespread adoption may be a challenge,but its a challenge with well-defined parameters.At its heart,it is a clearly articulated engineer-ing problem.Quantum is a realistic goal if we invest wisely and strategically.We have the chance to establish several multi-billion and due to the number of

109、 industries such as pharmaceutical research that quantum could turn on their heads,poten-tially even trillion-dollar companies that will reign over the software industry in the same way Nvidia currently leads in AI hardware.But to achieve this,we need to ensure that each layer of the quantum stack i

110、s co-developed and designed to work in harmony.As the industry seeks to construct a fully-functioning soft-ware stack,the experts we interviewed this year agreed that there is a growing focus on open knowledge,commu-nity contribution,and education in the quantum industry.10McKinsey Digital:Quantum t

111、echnology sees record investments,progress on talent gapFor example,Fabio Sanches,Quantum Computing Direc-tor at the Federal Reserve,emphasized that many orga-nizations would feel uncomfortable accessing quantum through the cloud due to data security concerns.So,this highlights the need for more sta

112、rtups focusing on clear governance protocols for remote access use cases and transparent data storage practices.Quantum algorithmic development is crucial,but the hardware and foundational level of software need to be developed in tandem,mirroring how Intel co-developed x86 assembly with its hardwar

113、e,or how Nvidia designed CUDA kernels to run code on its GPUs.We must focus on building scalable and programmable Quantum Process-ing Units(QPUs)a task that companies like IQM are likely to lead in years to come.However,alongside these tangible developments,theres another layer that needs attention

114、to fully realize quan-tum computings potential the human layer.We have an opportunity to overhaul our education systems:preparing for the quantum era requires the next generation to start thinking in quantum terms.A generation that grew up in the era of classical computing will need to adapt and lea

115、rn how to operate and code quantum machines.Indeed,this is already happening.2022 saw an increase of 72%in the number of universities with formal masters programs in quantum technologies.10 Imagine a world where schoolchildren learn about the principles of superposition alongside theories of gravity

116、 or light.Theyll gain an understanding of the physical princi-ples set to shape their lives for decades to come.STATE OF QUANTUM 202418Lakestar ForewordStephen Nundy,Investment Partner&Chief Technology Officer at LakestarChristina Franzeskides,VC Investor at LakestarIn the inaugural State of Quantum

117、 2022 report,we empha-sized the necessity of a hybrid cloud solution to abstract away hardware limitations.The ensuing months have val-idated that claim.However,not every development in this field could be so easily predicted.Since the release of last years report,we have witnessed a year of growing

118、 and profound geopolitical and eco-nomic uncertainty.Yet,amidst this uncertainty,the past 12 months have shown an encouraging surge of public sector investment into“Deep Tech”.This investment has aided the development of innovative technologies such as quantum and generative AI.Examples such as the

119、EuroHPC Joint Undertaking and UK National Quantum Strategy illustrate this dynamic.To successfully build on these endeavors,it is essential to understand how quantum affects and is affected by the wider ecosystem.This will be critical to extracting maxi-mum advantage from the quantum revolution for

120、a range of stakeholders.These include corporations planning their strategic roadmap,investors assessing their portfo-lio makeup,and policymakers drafting laws to cover the next wave of innovation and technological discovery.GOVERNMENT LEADERSHIPA major development in 2023 has been the rise of gov-er

121、nments as the primary early purchasers of quantum technologies,ahead of corporations,interestingly.The Quantum Insiders(TQI)data showcases the significant scale of this trend.If conservatively spread over 10 years($4bn-$5bn yearly),government funding for quantum is twice the peak of VC investment in

122、 2022.Governments are backing quantum as a national strate-gic imperative.In an increasingly uncertain geopolitical environment,governments are recognizing the capabili-ties quantum technologies offer across a range of areas from security to optimization of infrastructure.TQIs mar-ket monitoring sho

123、wed that more than 30 governments are actively involved in quantum technologies.Notably,two thirds of these governments have formulated a formal coordinated policy on quantum.This coordinated action from governments has marshaled investment and given R&D efforts a clear roadmap to fol-low.Government

124、s have an important convening power,bringing together investors,start-ups,and other key stakeholders to develop policies and incentives to ensure the continued growth of the quantum ecosystem.European governments are well positioned in this area.Exciting quantum startup ecosystems are growing up acr

125、oss Europe,centered in innovation hubs such as Munich,Paris,the Golden Triangle in the UK,the Neth-erlands,and Finland.These grassroots communities exhibit the key ingredients needed for major quantum breakthroughs-exceptional talent,academic excellence,access to capital,and government support.Howev

126、er,these European hubs require continued matu-ration and development to match the scale and commer-cial viability of quantum clusters in the US and China.In the EMEA and APAC regions,investment is being driven by governments seeking to establish local quantum capa-bilities as critical infrastructure

127、 needed to uphold tech-nological sovereignty and independence,particularly as quantum computing moves towards real-world applica-tions.SOVEREIGNTY AND SECURITYAs countries face growing cyber threats on Critical National Infrastructure(CNI),investing in long-term quan-tum security measures will be es

128、sential to securing sov-ereignty.STATE OF QUANTUM 202419The World Economic Forum has reported that govern-mental,business,and individual cybersecurity measures are increasingly being rendered obsolete by sophisticated and frequent cybercrimes.11 Indeed,the UK Governments 2023 Cyber Security Breaches

129、 Survey identified approxi-mately 2.39 million instances of cybercrime across all UK businesses.12 In this context,there has been surprisingly little discussion about how quantum will help us combat these threats at a time when data harvesting,for decryp-tion later,is well understood.Quantum securit

130、y presents an opportunity to protect data“once and for all”.Through Quantum Key Distribution(QKD),parties can encrypt communications by securely sharing secret keys at high speeds and over long dis-tances.Additionally Quantum Random Number Genera-tors(QRNG)allow users to use quantum mechanical phe-n

131、omena to generate true randomness for encryption keys or authentication protocols.Startups such as Terra Quantum are already using these quantum technologies to build proven quantum-safe encryption standards.In June,Terra Quantum shattered previous world records for quantum key distribution(QKD)by r

132、eaching a transmission rate of 34 bits per second(pre-viously 0.0034)over a distance of 1,032 kilometers.These breakthroughs will help national governments and large corporations to keep pace with evolving cyber threats,establish boundaries and exert control over their net-works,while securing natio

133、nal sovereignty.QUANTUM AND GENERATIVE AIOne of the biggest topics of discussion in technology over the past year has been the rise of Generative AI.Funding,innovation,and attention have focused on LLM companies 11World Economic Forum:Global Risks Report 202312UK Department for Science,Innovation&Te

134、chnology:Cyber security breaches survey 2023like OpenAI,Anthropic,Mistral,and Aleph Alpha for good reason.The immediately demonstrable nature of GenAI has excited the weekend hacker,enterprise engineers and non-coding population alike,with its easy to access mani-festations seemingly popping up ever

135、ywhere.Quantum on the other hand,by the nature of it,is difficult to grasp conceptually and has always felt distant.This is despite announcements by industry giants such as IBM unveiling a 1000 qubit machine being online and the emer-gence of hybrid quantum as a paradigm to bridge the gap between“no

136、w and then”.As a result,quantum has been pushed into the shadow of GenAI this last year as teams focus on the“here and now”.However,quantum computing and artificial intelligence are not separate discussions.If we fail to consider the long-term potential emerging from the intersection of the two,we r

137、isk overlooking a valuable opportunity to match the high-performance computing(HPC)capabilities of quantum with the needs of AI.This combination promises to be a driving force for future advancements in both fields-especially in regard to developing Artificial General Intel-ligence(AGI).Quantum comp

138、uters,with their unparalleled exponen-tial computational capabilities,promise to process vast amounts of data and perform complex calculations at speeds far beyond those of traditional computers.Conse-quently,quantum computers are uniquely suited to bolster advancements in AI,particularly with machi

139、ne learning requiring the rapid processing of increasingly large data-sets,as well as the growing number of variables and con-straints associated.We have already seen companies and national research laboratories combine quantum and AI.Building on their successful development of Japans first STATE OF

140、 QUANTUM 202420superconducting quantum computer to perform quan-tum chemistry calculations,Fujitsu and RIKEN have cre-ated a new drug discovery technology using generative AI to predict structural changes of proteins from electron microscope images.13These breakthroughs arent limited to incremental

141、improvements to existing systems.They have the poten-tial to pave the path towards AGI,the apex of AIs evolu-tion.This means the ability to understand,learn,and apply knowledge across a wide range of tasks at a level equal to or beyond human capabilities.However,reaching that point requires business

142、 leaders to plan their deployment on a realistic schedule.To take advantage of the varying pace of commercially available qubits,we must be hardware agnostic.With quantum cloud companies like QMware building this software stack for multi-hybrid(public or private)cloud access,busi-nesses will be able

143、 to provide engineers with the latest and highest-performing computing power whilst having the flexibility to collaborate with a hardware vendor of their choice.13 FUJITSU:Fujitsu and RIKEN develop AI drug discovery technology utilizing generative AI to predict structural changes in proteins and Fuj

144、itsu and RIKEN develop superconducting quantum computer at the RIKEN RQC-Fujitsu Collaboration Center,paving the way for platform for hybrid quantum computingCONCLUSIONIn the long term,quantum will be a strategic organizational capability on par with the cloud in terms of impact and necessity.Howeve

145、r,the patient capital and nurturing envi-ronment required for this progress demands substantial government participation.In this respect,governments will play a crucial role in supporting the development of national quantum capabilities as they seek to build a sov-ereign quantum strategy.Governments

146、 must catalyze growth by fostering quantum ecosystems,anchoring homegrown talent,and enabling domestic startups to access the growth capital they need.If nations facilitate the flow of knowledge,capital,and talent,this will lead to quantum innovation in hardware,software,and algorithms.To make progr

147、ess,we must col-laborate more.We should be pooling brain power across academic,corporate,and state institutions-sharing use cases,positive and negative experiences,and embarking on the quantum revolution together.Given the rapid maturation of quantum machines,hybrid architecture will allow business

148、leaders to seamlessly integrate diverse quantum hardware.For these initiatives to succeed,users must be able to scale computing per-formance with the hardware available.It will be thrilling to watch where the next generation of leading quantum startups emerge from and the partner-ships they will dev

149、elop.2023 quantum market updatesThe quantum technology landscape of 2023 was a pivotal year of academic achievements,com-mercial endeavors,financial investments and government strategiesall converging to accel-erate the transition of quantum from theoretical exploration to potential practical applic

150、ation and the end goal of quantum advantage.The indus-try witnessed significant milestones that not only demonstrated technical advancements but also set a foundational structure for quantum com-putings future.The below represents a quick snapshot of some of the key quantum market updates which will

151、by naturebe non-exhaustive.STATE OF QUANTUM 202421STATE OF QUANTUM 202422In research,a Harvard-led team of scientists,which included significant support from QuEra researchers,successfully executed large-scale algorithms on an error-corrected quantum computer with 48 logical qubits and hundreds of e

152、ntangling logical operations.As error correction is a critical hurdle for practical quantum com-puting,scientific thought leader Scott Aaronson called the experiment“plausibly the top experimental quantum computing advance of 2023”and added it moved time-lines for quantum fault tolerance forward.Top

153、ological quantum computing saw an increase of interest,as well.Scientists from Quantinuum,a joint venture between Honeywell Quantum Solutions and Cambridge Quantum Computing,made headway by successfully creating and manipulating nonAbelian anyonsquantum states that could potentially enable fault-tol

154、erant quantum comput-ing.This impressive advance provides a robust pathway towards scalable quantum computation.Researchers at Rice University furthered the understanding of topologi-cal states by demonstrating their entanglement with other quantum states,a discovery that could lead to new ways of s

155、toring,scaling and processing quantum information.The academic progress dovetailed with commercial strides,as industry players advanced the development and accessibility of quantum computing.IQM Quantum Computers,a European quantum computing company,unveiled IQM Radiance,an upgradable quantum com-pu

156、ting platform designed for businesses,high perfor-mance computing centers,data centers and govern-ments that comes in 54-and 150-qubit variants and“IQM Spark,”a superconducting quantum computer designed to provide tailored learning experiences for academic institutions and research labs.This initiat

157、ive is poised to nurture a new generation of quantum computing exper-tise.Meanwhile,IBM revealed that their experiments in error mitigation on superconducting quantum processors may be a critical step towards practical quantum comput-inga long-standing hurdle in the field.In December,IBM unveiled IB

158、M Condor,a 1,121 superconducting qubit quan-tum processor and the Heron processor,noted as offering new levels in stability and performance.Scientists also made strides in 2023 to develop and test technology that will underpin future ultra-secure quantum networks.For example,Terra Quantum set a reco

159、rd for securing long-distance communications with quantum encryption,sending quantum-secure communication on optical-fiber cables over 1,032 kilometers.ACADEMIC ADVANCES IN PRACTICAL QUANTUM COMPUTINGSTATE OF QUANTUM 202423The year also marked collaborations and expansions in the quantum computing s

160、ector.IonQ,a provider of trapped-ion quantum computing,and Hyundai Motors publicized the expansion of their partnership,which is focused on harnessing quantum computing for automo-tive innovationa move that could revolutionize how we understand and build vehicles.In Finland,VTT Technical Research Ce

161、nter and IQM completed the countrys sec-ond quantum computer,boasting a 20-qubit system that reaffirms Finlands position as a frontrunner in quantum technology.Furthermore,the OpenSuperQ Project,a col-laborative international effort,embarked on the ambitious goal of constructing an open superconduct

162、ing quantum computer,potentially democratizing access to quantum resources.In addition to the efforts to make quantum computing broadly accessible to business and industry,large corpo-rations are beginning to deepen their embrace of quan-tum and companies within the quantum industry.NVIDIA,a leader

163、more associated with classical and supercom-puting,announced numerous partnerships with quan-tum vendors,including,for example,QMware and Terra Quantum.In the first deal,QMware has integrated NVID-IAs DGX quantum-classical stack into its quantum-hybrid platform QMware Cloud,advancing its capabilitie

164、s.14 Terra Quantum also partnered with NVIDIA in 2023,to enhance data analytics across various industries using a hybrid quantum computing approach.15 Similar to the QMware partnership,Terra Quantum also has integrated quantum algorithms with NVIDIAs GPU computing platform,facili-tating advanced mac

165、hine learning and simulation.Work-ing with Quantum Machines,NVIDIA also announced new architecture for researchers working in high-performance and low-latency quantum-classical computing.Canada also positioned itself as a quantum hub with the launch of DistriQ,a quantum innovation zone.This proj-ect

166、,a collaborative effort among Quantonation Ventures,ACET,and others,exemplifies the growing global commit-ment to fostering quantum ecosystems that encourage innovation and commercialization.14 Switzerland Global Enterprise:QMware Collaborates With NVIDIA on Cloud Offering15 Terra Quantum:Terra Quan

167、tum Aims to Unlock Unprecedented Business Performance with Hybrid Quantum Computing in Collaboration with NVIDIACOLLABORATIONS AND EXPANSIONSTATE OF QUANTUM 202424CAPITAL MARKET PULLBACKFunding rounds entered 2023 strongly,but reflecting the general sluggishness of venture investing in gen-eral,bega

168、n to trail off by mid-summer.However,several companies secured substantial investments to fuel their growth.As part of a growing partnership with Microsoft,Canadian-based Photonic Inc.raised$100 million in a round led by BCI and Microsoft.PASQAL,a French com-pany specializing in neutral atoms quantu

169、m computing,completed a Series B funding round of 100 million.This investment,led by Temasek and supported by a consor-tium of new and existing investors,will support PASQAL in its next phase of its expansion.Q-CTRL,a quantum soft-ware company,welcomed Morpheus Ventures as a new investor in its Seri

170、es B funding round,which amassed$54 million.Additionally,Quantum Motion,a UK-based quan-tum computing scale-up,raised over 42 million in equity funding,with Robert Bosch Venture Capital and Porsche SE leading the charge.Whereas multiple quantum startups selected the special purpose acquisition compa

171、ny,or SPAC,as a pathway to public listing including IonQ,Rigetti,and D-Wave in prior years,in 2023 only one significant quantum SPAC was announced.Zapata AI,which has pivoted from a quantum software company to a generative AI company,announced in late 2023 that it would become a publicly traded comp

172、any through a SPAC.It should also be noted,several companies that chose the SPAC route suffered stock reversals during 2023,including Rigetti and D-Wave,which were both threatened with de-listing on the NAS-DAQ exchange when their stocks traded under a dollar for an extended period.We discuss the in

173、vestment land-scape in detail later.The picture changes when focusing on IonQ,a US-based quantum hardware and software vendor.Following its Q3 results,IonQ announced over$100 million in bookings,one of which is delivering two quantum computers to the US Air Force Research Lab(AFRL).16 The quantum co

174、mpa-nys newest quantum computer,IonQ Forte,joined IonQs existing quantum portfolio of IonQ Harmony and IonQ Aria on the AWS platform:Amazon Braket Direct.17 The Forte quantum computer is considered one of the most power-ful quantum computers commercially available to date.By late 2023,analysts did n

175、ote a new wave of private funds entering back into quantum,signaling a possible resto-ration of venture funding for the industry.Oxford Quantum Circuits,for example,announced a$100 million Series B in late November 2023.The round was led by one of the leading Japanese venture capital firms,SBI Inves

176、tment,however even here we saw significant implicit government backing from-for example-British Patient Capital.We provide a deeper dive into the 2023 quantum technology funding rounds later in this report.16 Quantum Business News:IonQ Hits$100M in Revenue,Targets Quantum Advantage17 IonQ Investor N

177、ews:IonQs Most Powerful Quantum System,IonQ Forte,Now Available through the Amazon Braket Direct ProgramSTATE OF QUANTUM 202425GOVERNMENT FUNDING PROVIDES AN IMPORTANT BACKBONEWhile interest from private sources showed signs of slow-ing in 2023,governments across the globe doubled down on quantum te

178、ch,recognizing the importance of the tech-nology to national security,defense and privacy.The UK and South Korea laid out strategic plans underscoring their commitment to quantum technologies.The UK gov-ernment,through its National Quantum Strategy,identi-fied quantum technologies as a key driver fo

179、r the countrys future economic,social,and environmental prosperity.South Korea announced a substantial investment of over 3 trillion won($2.3 billion),aiming to establish itself as a quantum leader.These national strategies indicate a rec-ognition of the critical importance of quantum technolo-gies

180、and the need for a structured approach to secure a leading position in this burgeoning field.SUMMARY:INNOVATION AND INTERVENTIONThe year 2023,therefore,was an interesting chapter in the story of quantum technologyone that shows the bene-fits of a strong,albeit nascent,ecosystem.While capital investm

181、ent in quantum for 2023 may have fallen short of previous years,research advances and government interest continued and,in fact,increased.This invest-ment slowdown,matched with academic innovation and government intervention,will likely resolve itself in future months and years.In fact,the concerted

182、 efforts of aca-demia,industry,investors and governments provide a potent mix to propel the field forward,promising a future where quantum computing is not an esoteric science but a tangible tool that addresses some of the most complex challenges faced by humanity.STATE OF QUANTUM 202426Investment l

183、andscape:are we in a quantum winter or has it just got a bit colder?In recent years,the quantum technology sector has witnessed a remarkable surge in venture investments,reaching a zenith in 2022 with over$2 billion invested annually.This influx of capital marked a significant vote of confidence in

184、an industry at a relatively nascent stage focused primarily on research and devel-opment.This sparked debate among observ-ers and analysts concerning if the market was over-inflated.Cautionary whispers of a“quantum winter”started to gain momentum,portraying a scenario of dwindling private investment

185、 com-bined with generative AI diverting attention away from quantum,leading to a slowdown in quan-tum technological development due to slowing private investment.This section aims to shed light on the dynamics of venture investment in the quantum technology market throughout 2023 and detach,somewhat

186、,the link between private investment and quan-tum advancement.It will explore the underlying factors contributing to the observed investment slowdown,examine the notion of a potential“quantum winter,”and provide insights into the key trends shaping the quantum private-public investment landscape in

187、this transitioning year.I wouldnt say a winter,it just got a little colder ALEXEY GALDA,ASSOCIATE SCIENTIFIC DIRECTOR,QUANTUM ALGORITHMS AND APPLICATIONS AT MODERNATHEME 1STATE OF QUANTUM 202427STATE OF QUANTUM 202428Private investments in quantum technology peaked in 2022,topping$2 billion.18 In 20

188、23,the landscape of ven-ture investment in quantum technology presents a con-trasting picture.The year saw a notable deceleration in funding(50%decline),with disclosed fundraising and number of investment roundssignificantly lower than the previous two years.Funding Trends In 202318 The Quantum Insi

189、der,The Quantum Intelligence PlatformSource:The Quantum Insider,Updated end of December 2023TOTAL PRIVATE INVESTMENT IN QUANTUM TECHNOLOGY($MILLION,ROUNDS)Left axis Sum of USD funding($million)Right axis-Sum of funding rounds2,5002,0001,5001,00050005020000

190、2120222023STATE OF QUANTUM 202429However,in this decline,there are critical nuances.2021 and 2022 were special years.For example,in 2021,we had the large IonQ SPAC and the PsiQuantum Series D roundtogether representing$1 billion alone.There is a huge amount of capital that needs to be raised thats w

191、hy we had the SPACs:to overcome the Valley of Death.There are going to be more hardware companies approaching Series C with no money and this is where we will see a problem.Gov-ernments are going to try and help with a program to help companies through this.MEKENA METCALF,SENIOR QUANTUM COMPUTING RE

192、SEARCH SCIENTIST AT HSBCIt is also important to consider the details when analysing the investment figures.1.Geographical differences2.VC funding is down overall3.Growth in government fundingSTATE OF QUANTUM 202430In 2023,the United States saw the biggest fall in venture funding(80%decline).Yet,this

193、 decrease was primarily explained by 2022 being a significant year for quantum technology investments with large rounds fueled largely by SPACs and some select large Series B and later financ-ing rounds.Comparatively,the APAC and EMEA regions have been relatively more resilient with declines of 17%i

194、n the former and 3%growth in the latter in 2023 versus last year1.Geographical differencesSource:The Quantum Insider,Updated end of December 20232022TOTAL PRIVATE INVESTMENT BY REGION($MILLION)2023STATE OF QUANTUM 202431The 10 years leading up to 2021 saw enormous growth in venture capital investmen

195、t.The USA alone saw$250 bil-lion of newly deployed capital in 2021,5x the amount seen in 2011.12The fall of venture investment into quantum technology is in line with the broader venture market as a whole,with both demonstrating 50%declines in 2023 versus 2022.19 OECD Statistics:Venture Capital Inve

196、stments,USA2.VC funding is down overallSource:The Quantum Insider,KPMG Venture Pulse.Updated only to Q3 2023 YTD for like-for-like comparison purposes.20022202380070060050040030020010003.02.01.00.0TOTAL PRIVATE INVESTMENT IN QUANTUM AND OTHER TECHNOLOGIES($MILLION)Left axis Total other ve

197、nture financing($billion)Right axis Total Quantum financing($billion)STATE OF QUANTUM 202432Some media have referenced a quantum winter,however perspectives from the boots on the ground are very dif-ferent.All interviewees rejected the blanket assertion of a quantum winter:Quantum computing enters 2

198、024 stronger than ever.We may have seen the players and investors shift around,but this is nothing like a quantum winter.And a quantum winter is nothing to fear when you remember the quantum ice age a decade ago when very few investors would go near quantum technol-ogy.Now we are in an era where inv

199、estors recognise the opportunities available with quantum and are rushing to back the tech,anxious about missing the arrival of a quantum spring.GEORGE GESEK,CHIEF TECHNOLOGY OFFICER AND CO-FOUNDER OF QMWAREI dont think we are in a quantum winter,but it is a great catchphrase.Investment is down acro

200、ss the board,so you could say we are in more of a deep tech winter.TAHMID QUDDUS ISLAM,QUANTUM TECHNOLOGIES LEAD AT CITI GLOBAL INSIGHTSI dont think we are in a quantum winter.In a sense,I see 2021 and 2022 as a sugar rush period.it is chal-lenging for most companies to invest in quantum computing b

201、ecause its practical value is between five to fifteen years away.QUANTUM RESEARCH MANAGER AT GLOBAL MULTI-IN-DUSTRY CONGLOMERATEPrivate investment will probably stay roughly flat with 2023 levels,but this is not as dramatic as a winter might suggest.FABIO SANCHES,QUANTUM COMPUTING DIRECTOR AT THE FE

202、DERAL RESERVEI wouldnt say were in a quantum winter research is continuing,progress is being made its just hap-pening at a slower pace.Think of it more as a quan-tum fall.MEKENA METCALF,SENIOR QUANTUM COMPUTING RESEARCH SCIENTIST AT HSBC“I think as long as the industry continues to focus on the deli

203、very of roadmaps and continues to develop the technology,we will likely be able to avoid a quan-tum winter.KEN DURAZZO,VP,DELL RESEARCHSTATE OF QUANTUM 202433Still,even if the data shows only a relative decline in quan-tum investment,this does not mean it will be an easy ride for companies in the co

204、ming years:I wouldnt say a winter,it just got a little colder.When the opportunity space is diluted with more invest-ment options across AI to classical.flow of capital will decrease specifically for quantum.ALEXEY GALDA,ASSOCIATE SCIENTIFIC DIRECTOR,QUANTUM ALGORITHMS AND APPLICATIONS AT MODERNAGiv

205、en the current state of technology,some startups could have a difficult time in the next couple of years.we were clear from the beginning that quantum com-puting is in the stage of basic research.and requires at least ten years to get to an industrial advantage.we need less hype and more realistic e

206、xpectations.MICHAEL STREIF,QUANTUM COMPUTING SCIENTIST AT BOEHRINGER INGELHEIMFinally,it is important to note that,despite significant growth in quantum investment over the past few years,quantum technology still represents only a fraction of total VC funding(1%).2020 The Quantum Insider,The Quantum

207、 Intelligence PlatformSTATE OF QUANTUM 202434Focusing purely on the private sector for investment misses a consistent and increasingly important factor in the quantum technology landscape:the public sector.Our interviews flagged quantum computing as a strategically important sovereign technology:I h

208、ave seen over the last three years quantum becoming more important because of competition with China and other countries.I think government support.is significant enough.to drive investment and research in quantum.FABIO SANCHES,QUANTUM COMPUTING DIRECTOR AT THE FEDERAL RESERVEInvestor sentiment towa

209、rds riskier investments has cooled with the sudden rise in interest rates.Conse-quently,the continued investment from governments is more important than ever.TAHMID QUDDUS ISLAM,QUANTUM TECHNOLOGIES LEAD AT CITI GLOBAL INSIGHTSGlobally,national governments have committed$40-50 billion in funding.Thi

210、s represents a combination of histor-ical spending and forward-looking commitments.While some of the commitments are subject to political approv-als,the message is clear:public commitments currently dwarf private funding.One notable example is the alignment of the USs CHIPS and Science Act both stre

211、ngthening the nations technol-ogy companies in response to geopolitical pressures,as well as signifying the nations public quantum investment commitment,an action that would energize the American ecosystem,as well as resound globally.21It further signals that quantum technology development is not an

212、 outlier in technological history for the key role governments have in their maturation.Like the internet and nuclear technology,quantum technologies cannot advance without government support and 2023 showed this public motivation.3.Government funding21 The Quantum Insider:Quantum Leaders:CHIPS And

213、Science Act Could Seed A National Quantum-Centric Supercomputer ProgramSTATE OF QUANTUM 202435If conservatively spread over ten years($4-5 billion yearly),government funding commitments to quantum represent 2x the quantum VC investment peak in 2022.Government fundingVenture captital investment$2.5 b

214、illionpeak in 2022$4-5 billion/yearlyspanning over ten yearsSource:The Quantum Insider analysisSTATE OF QUANTUM 202436More than 30 governments are actively involved in quan-tum technologies with expanding international collabora-tions.Over 20 of these have formulated a formal coordi-nated policy app

215、roach to the promising technology.During 2023,several governments committed to support-ing quantum technologies,realizing the practical appli-cations underpinning them,from secure communication,sensing and navigation to optimization of logistics and infrastructure.Growing global government interest

216、into quantum technology globally,with early regional leaders emerging.Out of 33 governments with ongoing material quantum technology initiatives,more than 20 have developed a formal coordinated policy approach to Quantum.National strategy with large scale fundingOngoing government initiativesSources

217、:The Quantum Insider Intelligence Platform$40-50Bcommitted public funding*33 governmentswith ongoing public quantum technology initiativesGOVERNMENTS ARE A CRITICAL SOURCE OF CAPITAL FOR QUANTUM INVESTMENTSTATE OF QUANTUM 20243722 Department of Science&Technology,India:Budget 2020 announces Rs 8000

218、cr National Mission on Quantum Technologies&Applications and Cabinet approves National Quantum Mission to scale-up scientific&industrial R&D for quantum technologies INDIAINDIA QUANTUM OVERVIEWTOTAL COMMITMENT$1.5 billionPRIMARY AGENCIESCenter for Development of Advanced Computing(C-DAC),Department

219、of Science and Technology,Quantum Research and Center of ExcellenceEXAMPLE QUANTUM PLAYERSBosonQ Psi,QNu LabsImplemented by the Indian Department of Science&Technology(DST),a quantum mission was initiated in 2020 aiming to advance the nations economy through quantum technologies and its applications

220、.In April of 2023,an update to the Indian 2020 plan allo-cated further government funding commitment which is active until 2025 and totals$1.5 billion to be allocated to seed,nurture and scale up scientific and industrial R&D in quantum while creating an innovative ecosystem in quan-tum technology.2

221、2STATE OF QUANTUM 202438 SOUTH KOREA SOUTH KOREA QUANTUM OVERVIEWTOTAL COMMITMENT$2.4 billionPRIMARY AGENCIESKorea Institute of Science and Technology,Ministry of Science and ICT,National Research Foundation of Korea,Korea Research Institute of Standards and Science(KRISS)EXAMPLE QUANTUM PLAYERSLG I

222、nnotek,NORMA,KQC,SamsungSouth Koreas quantum strategy formally started in 2019 with a national initiative titled“Quantum Computing Tech-nology Development Strategy.”But the nations core focus began as recently as this year with a total commitment of$2.4 billion until 2035.The plan aims to competitiv

223、ely position South Korea in the global quantum technologies industry by advancing core quantum areas and a research ecosystem.Specifically,South Korea seeks to build its own quan-tum computer,an ecosystem of quantum sensors,and an increase in its quantum research capacity to 2,500 researchers.While

224、South Koreas quantum journey is early,ties to the US have already been established with IonQ and IBM Quantum.For example,Sungkyunkwan Universitys Quan-tum Information Research Support Center,or“Q-Center,”entered a 3-year partnership with IonQ for research and quantum advancement.While further signin

225、g an agree-ment with the Korea Institute of Science and Technology to mature a regional quantum computing ecosystem.At heart,I am an optimist about quantum.There is so much change and innovation happening,with teams around the world pushing forward quantum hard-ware R&D.South Korea is a special plac

226、e for quantum development.It is leading the way as a global hub,showing the world the value of a complete quantum ecosystem,bringing together government support,a thriving start-up community,and the backing of world-leading universities.BRAD KIM,CHIEF QUANTUM OFFICER&SENIOR EXECUTIVE VPSTATE OF QUAN

227、TUM 202439The UK National Quantum Strategy pledged to commit 2.5 billion($3.1 billion)in 2022 with one of the most ambi-tious national plans seen in the quantum industry.23 UK Government Department for Science,Innovation&Technology:Policy paper THE UNITED KINGDOMTHE UK QUANTUM OVERVIEWPRIMARY AGENCI

228、ESDepartment of Science,Innovation and Technology(DSIT),National Quantum Computing Centre(UKRI),National Physical LaboratoryEXAMPLE QUANTUM PLAYERSARQIT,Oxford Quantum Circuits,Quantum Motion,Oxford Ionics,Quantinuum(HQ migrated to Colorado),RiverlaneTOTAL COMMITMENT$4.3 billion (new commitment of$3

229、.1 billion in 2023)The UK quantum road map spans the next ten years and focuses on maintaining the UKs strong position in quan-tum investment,technology,and corporate presence.The initiative further aims to establish a network of quan-tum research hubs and an accelerator program to align research,in

230、dustry and government on quantum while pushing for commercial viability.Namely,the national quantum strategy pushes for ecosys-tem clusters across the UK,such as advanced semicon-ductors in South Wales and photonics in Scotland.Finally,the UK is also active in forming numerous alliances with other n

231、ations and clusters,such as the EU,the USA,Canada,Japan,South Korea,Australia,and more.The latest came from an Autumn Update outlining five quantum missions acting as milestones for quantum tech-nology until 2035,covering aims such as gaining quantum advantage and establishing a quantum communicatio

232、n network.23STATE OF QUANTUM 20244024 The Quantum Insider:US Releases National Quantum Initiative Budget Supplement,Committee Passes NQI Reauthorization Act THE UNITED STATES OF AMERICAUSA QUANTUM OVERVIEWPRIMARY AGENCIESNational Institute of Standards and Technology(NIST),the National Science Found

233、ation(NSF),and the Department of Energy(DOE)EXAMPLE QUANTUM PLAYERSGoogle Quantum AI,IBM Quantum,Microsoft,IONQ,Sand-boxAQ,PsiQuantum,Rigetti,and InfleqtionTOTAL COMMITMENTAt least$4.0 billionNot accounting for material defense investments and other initiatives such as ones from DARPA,the US govern-

234、ment has pledged total quantum funding of at least$4.0 billion,through the National Quantum Initiative(NQI)and other funding initiatives.The NQI was passed by the House Committee on Science,Space,and Technology in December 2023,and focuses quantum technology around three findings published in a repo

235、rt while announcing 2024 to be a critical year for quantum in the US with a proposed budget to strengthen quantum research and advancement.24It further aims to accelerate quantum research and prac-tical development for its economy and security through select agencies such as the National Institute o

236、f Stan-dards and Technology(NIST)and the Cybersecurity&Infrastructure Security Agency(CISA).What signifies the US public quantum investment com-mitment is the alignment with the CHIPS and Science Act aimed at strengthening domestic technology companies in response to geopolitical pressures.Workforce

237、 advancement has been initiated to target mounting shortages in quantum skills,named the National Strategic Plan for Quantum Information Science and Technology Workforce Development.In addition to the nations healthy private investment eco-system,the United States significant governmental back-ing o

238、f quantum technologies and initiatives further fuels its notable private quantum players and research legacy.2023 saw significant progress in quantum com-puting with practical deployments at several national labs and research hubs across Europe and North America.These quantum innovation facilities h

239、ave emerged as focal points for quan-tum technologies,bridging theoretical research with small-scale real-world applications.They also represent tangible commitments by public bodies,supporting their quantum technology ecosystems by bridging research and industry.Quantum Computer Deployment and Nati

240、onal HubsTHEME 2STATE OF QUANTUM 202441STATE OF QUANTUM 202442Practical Quantum Computing in National HubsSituated in Delft,the Netherlands-a small city positioning itself as a central location for quantum technology-House of Quantum is a Dutch quantum hub with paired locations in Eindhoven,Twente,a

241、nd Amsterdam,many of which open in 2026.House of Quantum connects experts,researchers,and industry players to advance quantum computing from theory to practice,providing availability to cryolabs,clean-rooms,and offices.Notable members and partners include Fujitsu,Qutech,TNO,TUDelft,OrangeQS,Qblox,Qp

242、hox,QuantWare,Delft Circuits,Single Quantum,Q Bird,Bluefors,Microsoft,Quantum Delft,and Quantum Delta NL.One example of a cryolab at the Dutch House of Quantum is the Bluefors Lab.The Bluefors Lab is lowering the barrier of entry into cryo-genic quantum computing by offering a millikelvin mea-sureme

243、nt system to test Noisy Intermediate-Scale Quan-tum(NISQ)computing systems.Such a testing ground enables startups,researchers,or other entities to assess the function,viability,reliability,and scalability of its quan-tum computing solutions.The cryolab further provides the means to test post-error-c

244、orrective mechanisms such as algorithms and middleware with the quantum hardware.As an example of how Bluefors is facilitating real-world quantum computing systems,IQM is using Bluefors dilu-tion refrigerators in both the IQM Spark and IQM Radiance models,which the company unveiled this year.HOUSE O

245、F QUANTUMImage:House of QuantumIn this section we profile seven national centers,offering quantum computational resources for research and com-mercial purposes in a wide range of quantum computing types,industrial focuses,and locations across Europe,North America,and beyond.STATE OF QUANTUM 202443Lo

246、cated in Qubec,Canada,the Sherbrooke Quantum Innovation Zone is a municipality-managed national lab in quantum technologies with more than$435 million of funding commitments.25The aim for Sherbrooke is distinctly local in utilizing quan-tum technology to improve immediate manufacturing and technolog

247、y businesses in the region while attracting renewed capital and highly skilled jobs.The expanding list of partners includes 1Qbit,Exaion,Nanoacademic,Nord Quantique,Pasqal,Qubic,SBQuan-tum,CMC Microsystems,PinQ2 City of Sherbrooke,Uni-versit de Sherbrooke,Sherbrooke Innopole,Cgep de Sherbrooke,Produ

248、ctique Qubec,and Center 24-juin.The innovation zone covers three locations:Institut Quantique,connects researchers in quantum materials,engineering,and information to develop the future of quantum technologies.CINQ is focused on talent building and preparing busi-nesses and universities for digital

249、technologies and advanced manufacturing,quantum included.Espace Quantique 1 is a collaborative space with shared lab facilities to advance the practical use cases of quantum technologies.Pasqal,one of the partners,has announced they will be deploying a neutral atoms quantum computer for testing purp

250、oses in the shared lab with the means to produce quantum processing devices.SHERBROOKE QUANTUM INNOVATION ZONE25 Innovation News Network:Accelerating Innovation in Quantum TechnologiesImage:Martin Blache,collaborator UdeSSTATE OF QUANTUM 202444The Israel Quantum Computing Center,with$29 million in p

251、rivate and public funding26,will deploy a full-stack quan-tum computer providing researchers and industry players to test the qubit types:superconducting qubits,cold ions,and optical computers.The Israel Innovation Authority(IIA)chose Quantum Machines to deploy the full-stack quantum computer backed

252、 by international partners of Elbit Systems,Quant-Ware,ORCA,Infleqtion,ParTec,and Classiq.The Israel Quantum Computing Center will offer a diverse set of quantum computing modalities for research and testing.A strategy that aims to explore and identify the most suited quantum computing types for dif

253、ferent use cases and eventually quantum advantage.26 The Quantum Insider:Israel To Establish$29M Quantum R&D Centre ISRAEL QUANTUM COMPUTING CENTERImage:Quantum MachinesSTATE OF QUANTUM 2024452023 also saw IonQs deployment of its new 20“algorith-mic qubits”quantum computer,named Aria.The quan-tum co

254、mputer is located in Quantum Basel,the Center of Competence for Quantum and Artificial Intelligence,in Switzerland.The new quantum center is part of the uptownBasel innovation campus,a 70,000 square meter complex offering companies and research institutions ways to advance Industry 4.0 technologies,

255、specifically in the pharmaceutical sector.Through Quantum Basels partnership with IBM Quantum,cloud access is offered to IBM Quantums System One and System Two quantum computers.QUANTUM BASEL,THE CENTER OF COMPETENCE FOR QUANTUM AND ARTIFICIAL INTELLIGENCEImage:QuantumBaselSTATE OF QUANTUM 202446Cro

256、ss-sectoral collaboration is the central aim for the UKs National Quantum Computing Center(NQCC)opening the doors to its physical center in Harwell in 2024.The hub aims to develop synergistic effects between academia,research institutions,and businesses to progress quan-tum computing for the UK indu

257、stry and economy.One of the ways NQCC executes this goal is by providing optical and cryogenic quantum computing platforms for testing and research on hardware and post-corrective software.This is to realize NQCCs objectives of developing a quan-tum-ready workforce in the UK and pushing the practica

258、l applications of quantum computing to the British econ-omy and infrastructure aligned with its national quantum strategy and missions.The upcoming UK quantum hub is establishing an inter-national network of partners such as IBM Quantum and Rigetti Computing to further combine with its quantum resea

259、rch activities.NATIONAL QUANTUM COMPUTING CENTER UKSTATE OF QUANTUM 202447With IQM Quantum Computers(IQM)as the partner,VTT Technical Research Center of Finland upgraded its quan-tum computing capabilities to 20 qubits this year from its 5-qubit quantum computer deployed in 2021.This milestone is pa

260、rt of Finlands national strategy for quantum computing,committing$74 million to achieve a 54-qubit quantum computer by the end of 2024 with IQM and a goal of 300 qubits later.27This plan is part of IQM Radiance,a high-performance computing platform for data centers,enabling users access to quantum s

261、ystem operations in existing environ-ments,experimenting with algorithm behavior,and gen-eral quantum computing applications.28The newly deployed 20-qubit quantum computer is located in the southern end of Finland and provides researchers in micro and nanotechnology with quantum computation.VTT TECH

262、NICAL RESEARCH CENTER OF FINLAND27 HPC Wire:IQM and VTT Unveil Finlands 2nd Quantum Computer with 20 Qubits28 The Quantum Insider:IQM Quantum Computers Aims at 150-Qubit System With IQM RadianceImages:VTTSTATE OF QUANTUM 202448As the technology and science scene in Poland advances,the Polish Pozna S

263、upercomputing and Networking Cen-ter(PSNC)has chosen the British optical quantum com-puting vendor,ORCA Computing,to deploy two of its PT-1 quantum photonics systems.29The two quantum computers are to be installed in Decem-ber 2023 and will support research into the fields of biology and chemistry a

264、ided by machine learning,while position-ing Poland as one of the early national players in biotech-nology,generative chemistry,and quantum simulation.The deployment of the two optical quantum computers will also encourage closer collaboration between quan-tum technologies,hybrid systems,and classica

265、l high-per-formance computing.Namely this initiative is to explore intersections between machine learning and quantum computing:between GPUs and Quantum Processing Units(QPUs).29 The Quantum Insider:ORCA Computing to Provide Pozna Supercomputing And Networking Center With First Quantum Computers THE

266、 POLISH POZNA SUPERCOMPUTING AND NETWORKING CENTER(PSNC)STATE OF QUANTUM 202449In summary,2023 saw a concerted effort to deliver tan-gible quantum computing resources for commercial and research purposes.A notable development in the quantum computing road-map is that national governments prioritized

267、 strategic investments to lay the groundwork for the deployment of actually working quantum computers.Notably,the deployments of the quantum systems are of varying types,while dedicated to advancing collaboration and innovation between multiple stakeholders,support-ing quantum technologies to progre

268、ss from labs to mar-kets and theory to applications.Quantum Computing Deployment and CollaborationQuantum and AITHEME 3For decades,artificial intelligence(AI)has attracted research interest in both commercial and academic circles,due to its potential in auto-mating processes and generative capabilit

269、ies.In 2023,the market saw a surge in hype following OpenAIs achievements,driven by its product release of ChatGPT in late 2022.Turbulent cor-porate moves and surges in investment have further contributed to AI capturing the headlines throughout 2023.STATE OF QUANTUM 202450STATE OF QUANTUM 202451Thi

270、s year,Large Language Models enabled by a trans-former-based neural network computing architecture and powered by GPUs became the driving infrastructure behind the ongoing AI revolution we are experiencing today.Mirroring other transformative technologies,the prom-inence of AI has occupied executive

271、 and investor con-sciousness to a point where some end-users of quantum technologies are shifting gears to focus on AI first:quan-tum second.Generative AI is gaining a lot of traction and resources are going there you have to figure out how to stay relevant and convince the board that investment in

272、innovation must span time horizons beyond near-term.MEKENA METCALF,SENIOR QUANTUM COMPUTING RESEARCH SCIENTIST AT HSBCI would say Ive seen quite a few people starting to question when quantum is able to show a compu-tational advantage in a single big and relevant use case.And right now AI is top of

273、mind as one of those potential use-cases.KEN DURAZZO,VP,DELL RESEARCHGenerative AI seems to be where most investment is going,casting a shadow on quantum.Its a lot eas-ier to convince boards to invest into generative AI compared to quantum,which is considered as more frontier.TAHMID QUDDUS ISLAM,QUA

274、NTUM TECHNOLOGIES LEAD AT CITI GLOBAL INSIGHTSThis surge in AI popularity has prompted the question if generative AI has pivoted attention away from quantum technologies and if quantum is left in the dust.AI IS CAPTURING THE LIMELIGHTSTATE OF QUANTUM 202452A lot of the VC community has over-pivoted

275、to gen-erative AI and could be a reason why we are seeing investment go down in quantum systems compared to the last couple of years.KEN DURAZZO,VP,DELL RESEARCHQuantum computing should not be seen as an alternative to generative AI and machine learning.They are comple-mentary.While VC investment in

276、 quantum technologies has decreased,a spillover effect has emerged between artifi-cial intelligence and quantum.While I see this as part of a broader technology down-turn,we do see AI investment going up,including in hardware.This ends up helping quantum because both quantum computing and specialize

277、d AI hard-ware are“new chips”and transformative technolo-gies.FABIO SANCHES,QUANTUM COMPUTING DIRECTOR AT THE FEDERAL RESERVEThe sudden surge in interest in generative AI has under-lined the importance-and challenges-of being ready for transformational technologies.AI is capturing the lime-light but

278、 it flags that corporations must be prepared for the next transformative technology.The sudden improvement in the capabilities of gen-erative AI caught a lot of companies off-guard.Thatll be a lesson theyll take forward when investigating other disruptive technologies,like quantum.The transition fro

279、m AI promise to execution is taking place,which could give quantum some breathing room.TAHMID QUDDUS ISLAM,QUANTUM TECHNOLOGIES LEAD AT CITI GLOBAL INSIGHTSIts important to carefully delineate how quantum and AI are relevant to each other.Quantum computing as a potential HPC and AI accelera-tor:A ke

280、y adoption barrier to on-premise AI,and by exten-sion cloud-accessed AI,is GPU availability from the infra-structure of GPU centers,sufficient scaling of advanced semiconductor manufacturing,and global supply chain challenges from geopolitical complications.Some expect quantum computing could help p

281、rovide the processing power required for AI or its development.However,as AI is designed on linear classical computing,traditional machine learning algorithms cant run on quan-tum processing units(QPUs).Yet,as quantum machine learning(QML)analogues advance,quantum computing can assist the developmen

282、t of generative AI and automa-tion.While still in its infancy,quantum computing could improve the training of neural network models or expedite certain linear algebra operations and,by extension,opti-mize machine learning tasks.AI VERSUS QUANTUMSTATE OF QUANTUM 202453Some people are starting to catc

283、h on to the perfor-mance improvement potential in Machine Learning using Quantum Machine Learning models.Quan-tum computers arent just faster,but they could learn better.My focus is currently on trying to scale those,either on a quantum computer or in a quantum-in-spired way,to deliver real and mean

284、ingful value.MEKENA METCALF,SENIOR QUANTUM COMPUTING RESEARCH SCIENTIST AT HSBCAI supporting the development of quantum computing:Usage of todays AI could aid the adoption and develop-ment of quantum computing to address complex techni-cal barriers such as decoherence and relaxation of qubits while

285、improving the effectiveness of post-error-correcting algorithms.In effect,possibly expediting the development of quantum computing to potentially be fault-tolerant,reliable,and scalable for its widespread commercial application.2023 saw potential use cases from the alliance between quantum technolog

286、ies and AI.These use cases,such as generative chemistry and the simulation of digital twins,are very much in their early infancy.However,the parallel maturation of quantum computing and AI could potentially bring improvements that promise to solve computation-ally challenging problems.Some are askin

287、g what can I do today with AI on quantum?AI is going to get a lot of focus over the next few years and understanding the role of quan-tum as a potential accelerator.its reasonable to ask if quantum computers arent more suited for proba-bilistic computing systems.We may have to change some of the way

288、s that we approach algorithms and perform tasks in AI to fully utilize the full potential of quantum computers.KEN DURAZZO,VP,DELL RESEARCHI am excited to see what we can achieve from com-bining generative AI with quantum before we get to fault-tolerant quantum computation Quantum Machine Learning m

289、ay give us some advantage over other heuristic classical algorithms.ALEXEY GALDA,ASSOCIATE SCIENTIFIC DIRECTOR,QUANTUM ALGORITHMS AND APPLICATIONS AT MODERNAThe potential impact of the convergence between quan-tum computing and artificial intelligence is still nascent.However,the next stage of AI is

290、 being able to execute sequenced tasks over planned periods.STATE OF QUANTUM 202454This means rather than immediate questions and answers from generative AI,it will be able to act on a set of tasks,changing its execution based on ongoing results.With the AI and quantum computing excitement and their

291、 potential use cases,we should expect spillover in support-ing the development of the two emerging technologies.In finance,the recent uptake in the use of generative AI has added another dimension to the potential of using quantum computing for machine learning.For many use cases,while it looks prom

292、ising,were still at the early research stages.TAHMID QUDDUS ISLAM,QUANTUM TECHNOLOGIES LEAD AT CITI GLOBAL INSIGHTSQuantum technologies and Artificial Intelligence are not adversaries.The two are complementary,possibly even crucially connected-eventually.Through pioneering quantum layers and hybrid

293、model architectures,we have been actively shaping the confluence of quantum and arti-ficial intelligence to augment and amplify our capacity to predict,understand,and innovate.Hybrid Quantum Neural Networks(HQNNs)are a powerful tool to help industry tackle specific types of machine learning problems

294、,such as time series prediction.Our endeavors in renew-able power forecasting,steam mass flow pre-dictions and drug response analysis demon-strates the potential of better accuracy with less data.We are harnessing the power of our novel approaches such as Parallel Hybrid Networks,Quantum Depth Infus

295、ed Layers,and Exponen-tial Encoding.We are also working on a power-ful framework that makes Quantum AI acces-sible,through empowering users to design,build,tune,benchmark and deploy quantum enhanced ML models,in our Quantum-as-a-Service TQ42 Ecosystem.KARAN PINTO,GLOBAL DIRECTOR OF GROWTH AT TERRA Q

296、UANTUMUse Cases-Emerging Quantum UtilityTHEME 4In this theme,we categorize quantum comput-ings developing use cases.Echoing the insights of the 2022 State of Quantum report,the most immediate quantum technologies use cases that indicate initial value are centralized around three areas:healthcare,cyb

297、ersecurity,and financial services.This section will thus expand on the growing field of exploring use cases for quantum.Each is inter-spersed with insights from experts in the indus-try,alongside the recognition that billion-dollar value is only possible from quantum technolo-gies achieving maturity

298、 and advantage over clas-sical and hybrid systems.STATE OF QUANTUM 202455STATE OF QUANTUM 202456The State of Quantum 2022 report found that more than 63%of surveyed companies expected commercial appli-cations in the next five years.This left a significant portion who didnt believe quantum computing

299、was yet practical enough for real-world applications.The reasons cited were:High prices Unreliable hardware A necessity for significant capital investment Shortage of required talent in quantum technologiesIn this section we dig into the potential use cases,focus-ing on three clear industrieshealthc

300、are,cybersecurity,and finance which stood out in respondents answers to be impacted most by quantum computing.With additional insights from 2023,how did these three industries perform,and,further,which other quantum computing use cases stand to offer users increased revenue or decreased cost if quan

301、tum computing achieves maturity and advantage?The Quantum Insider tracked a doubling in enterprise end-users,from 150 to 30030,interested in quantum tech-nologies and their potential from simulation to optimiza-tion.The table below provides key examples of partnerships between an end-user and a quan

302、tum technology supplier.Use Cases Recap of the 2022 Report30 The Quantum Insider,The Quantum Intelligence PlatformQuantum CompanyEnterprise User Description AUTOMOTIVE AND AEROSPACEQuantinuumBMW and AirbusBMW Group,Airbus,and Quantinuum joined forces to accelerate sustainable mobility research using

303、 quantum computers.This collaboration aims to leverage the power of quantum computing to address challenges in the field of sustainable transportation.RIKEN and FujitsuToyotaRIKEN and Fujitsus Fugaku supercomputer will partner with an alliance of compa-nies including Toyota,Hitachi,and Sony to promo

304、te the use of computing infrastruc-ture that melds quantum technology with supercomputers.Through the integration of the RIKEN-Fugaku supercomputer,Japans Riken research institute aims to bring quantum computing technology into real-world use by around 2025.Terra QuantumHondaTerra Quantum and Honda

305、Research Institute Europe developed a quantum machine learning solution to expedite routing during disasters.Demonstrated in a simulated earthquake,the solution efficiently predicted vehicle escape routes,outperforming classical methods.It processes many real-time variables,aiming for implementation

306、 in various urban scenarios.Terra QuantumSchaefflerSchaeffler Group and Terra Quantum initiated a collaboration,integrating quan-tum computing and AI to advance mobility and manufacturing.Their partnership focuses on business use cases,sets a clear application roadmap,and provides quantum training,a

307、iming to enhance Schaefflers innovation and operational per-formance in areas of general manufacturing.ENERGYTerra QuantumUniperUniper and Terra Quantum partnered to apply hybrid quantum computing to the energy sector.They targeted enhancements in LNG logistics,CO2 emissions predictions in biomass p

308、lants,and valuing complex derivatives in energy trading,demonstrating practical quantum technology use cases in the energy sector.FINANCEQuantinuumHSBCQuantinuum and HSBC announced a series of exploratory projects that exploit the potential near-and long-term benefits of quantum computing for bankin

309、g with spe-cific projects in cybersecurity,fraud detection,and natural language processing.Terra QuantumHSBCTerra Quantum collaborated with HSBC to apply hybrid quantum technologies to optimization challenges in finance.This partnership aims to enhance efficiency and manage complex problems like col

310、lateral optimization with Terra Quantums pro-prietary TetraOpt solver,demonstrating quantums growing impact on the financial industry.Terra QuantumCirdan CapitalTerra Quantum and Cirdan Capital partnered to optimize exotic option pricing with quantum software,achieving up to 75%faster calculations t

311、han standard methods.This advance allows for efficient risk assessment and potential cost savings in finan-cial trading,indicating readiness for quantum-powered solutions in the future.HEALTH CAREGoogle Quantum AI labBayerBayer aims to speed up its in-silico research and development with Google Clou

312、ds high-speed processors.This collaboration aims to enable Bayer to run large quan-tum chemistry calculations at scale using Google Tensorflow Processing Units.IBMModernaModerna and IBM are teaming up to use generative artificial intelligence and quan-tum computing to advance mRNA technology,the dev

313、elopment at the core of the companys Covid vaccine.The companies have signed an agreement that would allow Moderna to access IBMs quantum computing systems and generative AI model.STATE OF QUANTUM 202457INDUSTRIALSMicrosoftJohnson MattheyScientists who specialize in chemistry at Microsoft Azure Quan

314、tum partnered with Johnson Matthey to discover novel types of catalysts for hydrogen fuel cells.This collaboration showcases the potential of quantum information science in reducing the carbon footprint of the automotive industry and finding solutions to tackle the issue of climate change.XanaduRoll

315、s-RoyceXanadu and Rolls-Royce will collaborate to accelerate aerospace research by co-developing new PennyLane features.InfleqtionWorld ViewInfleqtion and World View announced a partnership that provides faster,more cost-effective quantum application testing utilizing Infleqtions compact quantum tec

316、hnology and World Views patented stratospheric balloon systems.INFORMATION TECHNOLOGYQuantum BrillianceBeyond.plThe cooperation will focus on the acceleration of market adoption of quantum com-puting technology and solutions in CEE.Quantum Computing IncmillionwaysQuantum Computing Inc and millionway

317、s are working to investigate the benefits of combining QCIs Reservoir Quantum Computing(RQC)machine learning technol-ogy with millionways AI algorithms.QCI hopes to launch a commercialized applica-tion or product utilizing their quantum photonic hardware and AI.QuantinuumMicrosoft and KPMGKPMG and M

318、icrosoft are working with Quantinuum in Simplifying Quantum Algo-rithm Development via the Cloud.The QIR Alliance,an international effort to enhance platform interoperability and enhance the work of quantum computing developers.QuantinuumCybertrustQuantinuum announced that Cybertrust has integrated

319、its Quantum Origin quan-tum-computing-hardened private keys into a new certificate issuance and distri-bution platform for IoT devices to ensure secure communications now and into the future.RIKENSonyRIKEN and Fujitsus Fugaku supercomputer will partner with an alliance of compa-nies including Toyota

320、,Hitachi,and Sony to promote the use of computing infrastruc-ture that melds quantum technology with supercomputers.Through the integration of the RIKEN-Fugaku supercomputer,Japans Riken research institute aims to bring quantum computing technology into real-world use by around 2025.Oxford Quantum C

321、ircuitsEquinixOxford Quantum Circuits is installing their Quantum Computer in Equinixs Data Centers with plans to open access to businesses globally.UTILITIESPASQALPOSCOPOSCO Holdings New Experience of Technology Hub plans to conduct research and development of quantum AI algorithms jointly with PAS

322、QAL.The two compa-nies plan to focus their capabilities on developing innovative technologies such as optimizing the hydrogen reduction steelmaking process(HyREX)and developing secondary battery materials by combining POSCO Groups AI technology and PASQALs quantum computer technology.Quantum Company

323、Enterprise User DescriptionSTATE OF QUANTUM 202458STATE OF QUANTUM 202459Four key industries affected or enabled by quantum computing1.SIMULATION2.OPTIMIZATION3.MACHINE LEARNING4.SECURITYFour categories denote the potential practical applications of quantum computing,which matured or formed in 2023.

324、From a broad perspective,quantum computing use cases fit into three areas,with the last category acting as being potentially impacted by quantum computing:Within these categorizations,several practical applica-tions,spanning verticals and industries,exist from quan-tums potential benefits or its imp

325、act on existing activities.Tackling the highlighted industrieshealthcare,security,and financefrom last years report,we see the sentiments of value potential echoed this year.Throughout this report,we have referenced Boston Con-sulting Groups value impact potential delineated by verti-cal and industr

326、y,as a high-level estimate of the scope of importance if quantum computing manages to achieve advantage and widespread commercial usage.31 We would caution that this should act merely as a high-level guide to future opportunities,not a precisely calculated figure.31 Boston Consulting Group:What Happ

327、ens When If Turns to When in Quantum Computing?STATE OF QUANTUM 202460BCG US$value creation impact estimate:$60-130bnTwo quantum computing applications stand out in poten-tially improving and shortening drug discovery.A process that,on average,takes over a decade with a minuscule success rate and a

328、cost per drug over$2 billion.32When combining machine learning and quantum com-puting,better simulation of chemical compounds,micro-and macromolecule interactions and behavior could be possible.A use case in early drug discovery that could improve and expedite the identification of potential new dru

329、g modalities.there are many computational tasks in the drug design pipeline that could benefit from quantum com-puting for example the design of mRNA sequences to achieve the desired function of the drug ALEXEY GALDA,ASSOCIATE SCIENTIFIC DIRECTOR,QUANTUM ALGORITHMS AND APPLICATIONS AT MODERNAIn heal

330、thcare and life sciences,were channeling the unparalleled computing power of quantum tech-nologies for advancements in cancer research and personalized medicine.We have developed a solu-tion that can accurately predict the effectiveness of various drugs on a broad range of cancer cell lines.Publishe

331、d in the oncology journal Cancers MPDI,our research demonstrates that a hybrid quantum-clas-sical neural network,even trained on a small dataset of drugs and cell lines,can predict the most appro-priate dosages with superior accuracy versus a solely classical neural network FLORIAN NEUKART,CHIEF PRO

332、DUCT OFFICER AT TERRA QUANTUM AGAn additional use case of quantum computing and artifi-cial intelligence could be to digitally simulate human biol-ogy to virtually test drug variants before human trials.If realized,this application could accelerate early drug dis-covery and increase new drugs succes

333、s rate and safety during human trials.So while the potential is plentiful,the path to get there is challenging and long.People are focusing too much on breakthroughs in single-point energy calculations I understand why,as it potentially brings significant promise of quan-tum advantage.But many other calculations such as for binding affinities or molecular dynamics in quan-tum and chemistry simulat