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IonQ Partners with QuantumCT to Provide 150 Hours of Cloud Computing Resources
Welcome to the latest edition of "Quantum Leap" where The Fly decodes news and activity in the quantum computing space.QUANTUMCT:IonQannounced a partnership with QuantumCT, Connecticut's statewide initiative to accelerate quantum innovation and economic development. QuantumCT will purchase access to IonQ's trapped-ion quantum computers on behalf of Connecticut-based, quantum-focused organizations. Under the agreement, QuantumCT will make IonQ's cloud quantum computing resources available to its network of academic institutions, research laboratories, startups, and enterprises across the state. Participating organizations will use IonQ's systems to extend research in quantum information science and technologies. Areas of focus will span quantum algorithms, optimization, materials science, and workforce development. The contract includes access to more than 150 hours of cloud runtime on IonQ's quantum computers and takes Connecticut's quantum community from exploration to application. QuantumCT is anchored by the University of Connecticut and Yale University. It's supported by a coalition of industry, government, and academic partners to position Connecticut as a national hub for quantum research, talent, and commercialization. Access to IonQ's commercial systems gives the state's researchers and businesses hands-on experience with frontier quantum hardware.ELISITY ACQUISITION:IonQ also completed its acquisition of Elisity in an all-stock transaction. Elisity's customers will continue to be supported by the same teams and platform, and existing deployments and their identity policies will carry forward. At closing, IonQ issued $1.15B of consideration in common stock under the terms of the merger agreement. The sellers may earn up to an additional $150M in consideration based on Elisity's performance against revenue milestones through January 2028.ENHANCEMENTS:D-Wave Quantumannounced performance enhancements to its Stride hybrid solver. In benchmark testing, the enhanced solver found better solutions in 15 seconds than the previous version found in 120 seconds. In addition, the company also launched a new, three-course applied quantum optimization learning path to accelerate hybrid-quantum optimization adoption. Together, the enhanced solver and training courses further equip developers to apply quantum optimization to complex, real-world business challenges. D-Wave has enhanced the core algorithm of its Stride hybrid solver to extend performance across the complex optimization problems it already supports. Combining quantum and classical computing resources, the updated Stride hybrid solver, now available in the Leap quantum cloud service, helps users quickly find high-quality solutions to large optimization problems that can be difficult for classical computing alone to address.QATACOMB DEMONSTRATION:Quantum X Labsreported the first demonstration of its Qatacomb quantum encryption scheme on commercial quantum hardware. In a run on an IBMQuantum Heron r2 processor, programmed through IBM's open-source Qiskit framework, the intended recipient reconstructed an encrypted image by reading through the machine's own noise, while an adversary who did not hold the key gained no usable information about the message. The company believes the significance lies in the kind of guarantee the scheme is designed to provide. The company said, "Most encryption in use today rests on mathematical problems that are hard to solve with current computers, and a sufficiently capable quantum computer is widely expected to be able to break much of it. Qatacomb is instead designed so that its privacy follows from the structure of quantum states themselves: it is intended to be information-theoretic, meaning its security is not designed to depend on any assumption about how much computing power an adversary can bring to bear, now or in the future. The demonstration moves Qatacomb from theory to testing on a real device. The intended recipient, holding the key, recovered the correct content for better than nine of every ten image elements and reconstructed the full image without error - despite the processor's real noise. The adversary's best possible measurement, evaluated exactly, returned no usable advantage."QUANTUM TIMING:Infleqtiondemonstrated quantum timing capabilities to support navigation using the company's Tiqker optical atomic clock. The demonstration took place during the Maritime Big Play Pacific, MBP-P, military exercise, an event sponsored by the Office of the Under Secretary of War for Research & Engineering with participation from across the U.S. Navy, U.S. Marine Corps and Australia and UK partners. During this exercise, Infleqtion operated Tiqker continuously aboard the U.S. Navy support vessel, RV Merlin, for two weeks in the Southern California operating area.54 QUBITS ENTANGLED:IQM Quantum Computersannounced that its cloud-accessible IQM Emerald system has fully entangled all 54 qubits on the chip simultaneously, a result that shows the system's computational quality holds up when every qubit is put to work at once. IQM's cloud customers now have access to that same full-chip performance, so their computations can draw on the entire processor rather than a fraction of it. The company said, "Until now, a user running a comparable demonstration on IQM Emerald could reliably use on the order of 30 qubits within a single algorithm. Studies on large quantum chips often use only a fraction of the available qubits, commonly 10 to 20, even when the hardware has many more. Emerald's result shows the alternative: an entire processor working together on one computation. The demonstration used a Greenberger-Horne-Zeilinger state, a standard benchmark for large-scale entanglement, prepared across the entire IQM Emerald processor. The result was enabled by a smarter, automated routine for state preparation that selects the best two-qubit gates while weighing gate fidelity against qubit idle time, choosing both the qubits and the gate order to minimize idle time as the state is built. IQM measured a fidelity of 0.515 at 40 qubits without readout error mitigation and 0.516 at the full 54 qubits with REM applied, both above the classical threshold of 0.500 that separates genuine entanglement from noise. The result builds on roughly a year of hardware and calibration work across IQM's technical teams, including an updated calibration methodology, an improved gate set and continued deployment of error-reduction tools such as dynamical decoupling and qubit selection. These improvements led to an error rate reduction of up to 50% for quantum operations in the processor. The automated state-preparation routine is part of IQM's broader effort to automate the operation of quantum computers. This development, along with IQM's AI-driven agentic calibration work, is part of a broader effort to automate the tuning of quantum systems."ANALYST COMMENTARY:B. Riley analyst Craig Ellis, a five-star analyst, lowered the firm's price target on Rigetti Computing (RGTI), D-Wave Quantum, IonQ and Infleqtion. The firm adjusted targets in the quantum computing space.Rigetti Computing was lowered to $25 from $35 and Buy rating on the shares was maintainedD-Wave Quantum was cut to $27 from $40 and a Buy rating was kept on the shares.IonQ was decreased to $75 from $100 Buy rating on the shares was reiterated.Infleqtion was axed to $17 from $23 and a Buy rating was reaffirmed on the shares.
Quantum X Labs Demonstrates Qatacomb Quantum Encryption Scheme
Quantum X Labs (QXL) reported the first demonstration of its Qatacomb quantum encryption scheme on commercial quantum hardware. In a run on an IBM (IBM) Quantum Heron r2 processor, programmed through IBM's open-source Qiskit framework, the intended recipient reconstructed an encrypted image by reading through the machine's own noise, while an adversary who did not hold the key gained no usable information about the message. The company believes the significance lies in the kind of guarantee the scheme is designed to provide. The company said, "Most encryption in use today rests on mathematical problems that are hard to solve with current computers, and a sufficiently capable quantum computer is widely expected to be able to break much of it. Qatacomb is instead designed so that its privacy follows from the structure of quantum states themselves: it is intended to be information-theoretic, meaning its security is not designed to depend on any assumption about how much computing power an adversary can bring to bear, now or in the future. The demonstration moves Qatacomb from theory to testing on a real device. The intended recipient, holding the key, recovered the correct content for better than nine of every ten image elements and reconstructed the full image without error - despite the processor's real noise. The adversary's best possible measurement, evaluated exactly, returned no usable advantage."
IonQ to Acquire Elisity for Up to $1.3B
Welcome to the latest edition of "Quantum Leap" where The Fly decodes news and activity in the quantum computing space.ELISITY ACQUISITION:On Monday, IonQentered into a definitive agreement to acquire Elisity in an all-stock transaction valued at up to $1.3B. Elisity will provide IonQ with expanded channels to bring its PQC, QKD and quantum computing offerings to market for both enterprise and government networks, opening up the more than $10B microsegmentation opportunity with double-digit CAGR to IonQ. Under the terms of the agreement, IonQ will acquire Elisity in an all-stock transaction valued at up to $1.3B, including up to $150M in earnout opportunity subject to performance of the Elisity business. The number of IonQ shares to be issued in the transaction will be calculated at closing based on the volume weighted average price of IonQ common stock for the 20 trading days prior to, but not including, the third business day before the closing date, but that price will not be greater than $49.61 or less than $33.07 per share. The transaction is expected to close in the fourth quarter of 2026 and is subject to customary closing conditions, including receipt of required regulatory approval.Rosenblatt maintained a Buy rating and $100 price target on IonQ following the acquisition announcement. The firm noted that on the surface, the Elisity move is "outside pure quantum," but it does fit IonQ's approach as an integrated supplier of solutions.ENTANGLEMENT RATES:Separately, IonQ announced the achievement of entanglement rates above 1,000 per second, 1 kHz, between a trapped ion qubit and a solid-state memory, through a photonic interconnect. "IonQ has crossed a pivotal milestone for memory enhanced quantum interconnects, achieving more than 1,000 entanglement events per second," said Niccolo de Masi, chairman and CEO of IonQ. "Classical data centers achieved massive scale by connecting specialized processors, memory, and networks. Quantum systems will scale in much the same way. This breakthrough addresses a critical interconnect bottleneck and advances IonQ's roadmap to build the networked quantum data centers of the future."ALZHEIMER'S APPLICATION:INmune Bioand Quantum Computingannounced a collaboration to apply quantum computing, artificial intelligence and data analytics to identify new potential applications for XPro, INmune Bio's investigational treatment for Alzheimer's disease and other disease conditions. The collaboration brings together INmune Bio's data from pre-clinical research through four clinical trials and understanding of disease biology with QCi's Dirac-3S quantum optimization machine. The companies intend to use quantum computing alongside AI and conventional data analytics to uncover relationships that could help find diseases driven by the same biology XPro targets, and to prioritize those with the greatest potential for success. The Stage 1 engagement represents QCi's first commercial customer in the pharmaceutical and biotechnology market.QUANTUM SPECTRUM-DF:Infleqtionhas been awarded GBP 9M by Innovate UK to continue development of a deployable quantum radio frequency, direction finding system as part of the Quantum Missions Primer program. Infleqtion is developing a Quantum Spectrum-DF product within the second phase of the Quantum Direction Finding project, designed to accurately detect and locate signals in environments where existing technologies are limited.MULTI-YEAR AGREEMENT:SkyWater Technology and D-Wave Quantumannounced a multi-year agreement. This collaboration extends the partnership between both companies, to continue specialized semiconductor process development and manufacturing in support of D-Wave's quantum technology roadmap. Under the new agreement, D-Wave will continue its relationship with SkyWater's Minnesota fab team, providing manufacturing continuity and access to specialized process expertise developed around its technology requirements.QUANTISIMO:Quantisimo, a special purpose vehicle established by WISeQeyand Sealsq, announced that it has entered into a definitive agreement and plan of merger. The proposed business combination would result in Quantisimo and GigCapital8becoming wholly owned subsidiaries of a newly formed British Virgin Islands holding company, Quantisimo Holding, whose ordinary shares are expected to be listed on Nasdaq under the symbol (QSMO). Quantisimo is a special purpose technology vehicle established by WISeQey and its subsidiary Sealsq to build a pure-play sovereign quantum vertical platform, "Root to Qubit." Prior to closing, WISeQey and Sealsq will contribute to Quantisimo their interests in the operating businesses of Miraex, Sealcoin, WeCan Group SA and WISeSat.Space. Under the agreement and plan of merger, a subsidiary of PubCo will merge with and into GigCapital8, with GigCapital8 surviving as a wholly owned subsidiary of PubCo, and immediately thereafter a second subsidiary of PubCo will merge with and into Quantisimo, with Quantisimo surviving as a wholly owned subsidiary of PubCo. Each GigCapital8 Class A ordinary share will be exchanged for one PubCo ordinary share, each five GigCapital8 rights will convert into one PubCo ordinary share, and the shareholders of Quantisimo will receive an aggregate of 66,610,000 PubCo shares, consisting of ordinary shares and Class F shares, with all Class F shares carrying, in the aggregate, 49.999999% of PubCo's total voting power. Closing is conditioned on, among other things, available cash of at least $15M, comprising cash from GigCapital8's trust account after redemptions and any PIPE investment, together with a cash contribution from Sealsq, which will receive additional PubCo ordinary shares at $10.00 per share for its contribution. Any PIPE investment is expected to be priced at not less than $10.00 per share. WISeQey, Sealsq, GigCapital8's sponsor and GigCapital8's directors and officers will enter into customary lock-up agreements for six months following closing, and GigCapital8's sponsor has agreed to vote its shares in favor of the transaction and not to redeem them. The boards of directors of GigCapital8, Quantisimo, WISeQey and Sealsq, and PubCo have approved the business combination, and the board of directors of GigCapital8 has unanimously recommended that GigCapital8's shareholders approve it. The business combination is expected to be completed in the first quarter of 2027, subject to customary closing conditions, including the approval of GigCapital8's shareholders, the effectiveness of the registration statement referenced below and the approval of PubCo's listing on Nasdaq.PATENT APPLICATION:Quantum X Labsannounced that it filed a patent application with the U.S. Patent and Trademark Office titled "Structured-Beam Zeeman Slower and Atomic Push-Beam System." The application covers laser cooling, manipulation and transport of neutral atoms using optical beams with non-Gaussian intensity profiles, which are meant to give more control over how atoms are slowed, pushed, guided and moved inside its cold-atom quantum computer. The technology is being developed for the company's cold-atom quantum computing program, where atoms must be slowed, cooled and positioned before they can be trapped and used for quantum operations.DARPA QBI STAGE C:IonQ has advanced to Stage C of the Defense Advanced Research Projects Agency's Quantum Benchmarking Initiative, or QBI. IonQ and DARPA have signed a Stage C agreement with a potential value of up to $300M to continue validating IonQ's approach to delivering large-scale fault-tolerant quantum computers. Funding beyond the initial obligation remains subject to future appropriations and DARPA funding actions." IBMhas also been selected for Stage C, the third phase of the Quantum Benchmarking Initiative, or QBI, led by DARPA, the U.S. Defense Advanced Research Projects Agency. This phase will advance IBM through DARPA's verification process, in which independent experts extensively test and measure quantum hardware, technology, systems engineering, and architectures to determine if a company can build a fault-tolerant quantum computer. As an independent research and development arm of the U.S. Department of Defense, DARPA launched the QBI in 2024 to determine whether an industrially useful fault-tolerant quantum computer can be built by 2033. The program defines such a system as one whose computational value will exceed its cost. IBM has successfully progressed through the QBI's assessment process, including the first two stages that analyzed comprehensive R&D plans and risk mitigation approaches. Those selected for Stage C will move beyond conceptual plans and progress to evaluation by DARPA's QBI independent verification and validation team as they test the companies' hardware.
Quantum X Labs Files New Patent Application
Quantum X Labs announced that it filed a patent application with the U.S. Patent and Trademark Office titled "Structured-Beam Zeeman Slower and Atomic Push-Beam System." The application covers laser cooling, manipulation and transport of neutral atoms using optical beams with non-Gaussian intensity profiles, which are meant to give more control over how atoms are slowed, pushed, guided and moved inside its cold-atom quantum computer. The technology is being developed for the company's cold-atom quantum computing program, where atoms must be slowed, cooled and positioned before they can be trapped and used for quantum operations. "A cold-atom quantum computer begins with the ability to control atoms with exceptional precision," said Nir Sharon, chief technology scientist of Quantum X Labs.
Quantum X Labs Achieves 16.8-Fold Computational Acceleration with GPU-Accelerated Quantum Simulation Platform
Quantum X Labs reported its GPU-accelerated quantum-simulation platform achieved an approximately 16.8-fold computational acceleration using a single machine with 64 cores and a single Nvidia T4 Tensor Core GPU compared with the same 64-vCPU machine with only CPU implementation. The evaluation used a real clinical gene-expression dataset comprising 11 patients and 3,531 gene-expression features, representing a challenging high-dimensional setting in which the number of biological variables greatly exceeds the number of patients. Quantum X's proprietary algorithm, operated through its subsidiary CliniQuantum, searched for correlated three-gene configurations across the dataset. The 3,531 genes generated 7,331,162,245 possible three-gene combinations. Using a predefined minimum correlation threshold, the algorithm identified approximately 22.2 million correlated gene triplets. The analysis required approximately 8.4 hours using 64 vCPUs, compared with approximately 0.5 hours when accelerated using a single Nvidia T4 GPU, while producing the same qualifying gene-triplet results. "This represents an important development milestone for Quantum X Labs," said Tidhar Turgeman, head of clinical trials data analysis. "Clinical and molecular datasets can contain thousands of variables but relatively few patients, creating enormous combinatorial search spaces. Demonstrating the ability to evaluate more than 7.3 billion potential gene combinations on real clinical data marks an important step in our development. The significant GPU acceleration further supports our continuing development of scalable, quantum-enabled approaches for biomarker discovery and patient stratification."
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