Despite Billions Invested, Quantum Computing Remains Futuristic – CNBC Report
Despite Billions Invested, Quantum Computing Remains Futuristic – CNBC Report
Quantum computing is in the spotlight, drawing significant attention from leading organizations such as Google, Microsoft, Amazon, IBM, and the U.S. government, according to CNBC. CNBC claims the race to build practical quantum computers is driving millions in investments from these tech giants and the federal government.
Citing McKinsey & Co., CNBC reports that quantum-focused startups secured about $2 billion in 2024, reflecting strong investor enthusiasm for an industry that could approach $100 billion in annual revenue within a decade. However, CNBC notes that the present market remains limited, with quantum computing companies generating less than $750 million in revenue in 2024.
The report highlights new milestones: Microsoft introduced its first quantum chip, Google executives suggested quantum computing may be five years away, Amazon showcased its error-correcting quantum processor, and IBM set a goal to deliver a functional quantum computer by 2029.
Alongside these industry leaders, smaller companies and universities are advancing the field through mathematical research, software development, and potential business models. Some quantum companies are even publicly traded, their shares rising or falling sharply on industry news, CNBC observes.
In January, Nvidia CEO Jensen Huang, as referenced by CNBC, expressed skepticism about the near-term practicality of quantum computing, suggesting a 20-year horizon might be realistic. He later walked back the remarks but was surprised by the market reaction and the presence of public quantum companies.
Currently, CNBC explains, quantum computers are used primarily for research and have no practical business function. Their promise, however, is transformative: the ability to process certain calculations that are impossible or unfeasible for classical computers.
Quantum computers operate with qubits, not transistors. As CNBC explains, qubits leverage quantum mechanics and entanglement—where a change in one qubit impacts the probabilities of others. Many quantum computers must run at temperatures close to absolute zero.
Most current quantum applications focus on chemistry and physics simulations. Krysta Svore, Microsoft’s vice president of advanced quantum development, tells CNBC that, even if quantum computers are only used for chemistry and materials science, they will have a global impact, as 96% of manufactured goods depend on these fields.
Encryption Risks and National Security
One immediate concern, CNBC highlights, is cryptography. Quantum computers could quickly factor numbers, threatening current encryption protocols. John Young, operating chief at Quantum eMotion, warns that quantum breakthroughs could compromise digital privacy and security. This risk is echoed by the Biden administration’s 2022 memo, cited by CNBC, which warns that a cryptographically relevant quantum computer could threaten both civilian and military systems.
There’s no current practical algorithm for quantum computers that can’t be performed on conventional computers, CNBC says. Yet, some have demonstrated “quantum supremacy,” including Google in 2019 with its Sycamore computer, which completed a random circuit sampling task faster than any classical supercomputer.
Potential future uses include medicine, chemistry, and materials discovery. CNBC cites Google’s optimism for quantum-assisted drug development and fusion energy. Microsoft’s quantum chip aims at solving corrosion and plastics problems, while the technology may also aid in generating AI training data.
Shor’s algorithm, famous for showing quantum computers’ superiority in factoring large numbers, is spotlighted by CNBC as a national security threat, especially to encryption methods like RSA, widely used by militaries and financial institutions.
U.S.–China Quantum Race
CNBC claims concern persists that China could achieve quantum breakthroughs before the U.S., with the Pentagon noting in 2021 the devastating consequences of adversarial quantum use. Microsoft’s Brad Smith has publicly emphasized the security race, as CNBC reports. Companies like Apple are already deploying post-quantum encryption, but older encrypted data remains vulnerable to future decryption.
Quantum Error Correction and Scaling
Currently, CNBC details, most quantum hardware companies are focused on error correction. Microsoft claims to have reduced error rates a thousandfold. Scaling up remains a challenge—Google’s Willow chip has 105 qubits, Microsoft’s Majorana has eight, IBM’s Starling targets 200, and Amazon’s Ocelot chip has 14. A million qubits are needed for a practical quantum computer, say Google and Microsoft, according to CNBC.
Conclusion
As CNBC concludes, quantum computing is advancing rapidly, but real-world business use is still on the horizon. Key developments from Google, Microsoft, Amazon, and IBM, together with billions in investment, set the stage for breakthroughs—while encryption, national security, and technical scaling remain crucial hurdles.
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