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IBM Announces Integration of Quantum Modules, Aiming for First Fault-Tolerant Quantum Computer by 2029

Welcome to the latest edition of "Quantum Leap" where The Fly decodes news and activity in the quantum computing space.LEAP FORWARD:IBMannounced it has joined and cooled down two cryogenic modules into a single environment. The new architecture is designed to scale into the modular, shared, and ultra-cold system required to link hundreds of quantum chips into a more powerful quantum computer capable of solving large problems. The company said its deployment is a milestone on IBM's path to delivering IBM Quantum Starling in 2029, which is expected to be the world's first fault-tolerant quantum computer and will integrate advances across error correction, processor design, decoding, and systems engineering. Combined, the first two operational modules stand more than eight feet tall and eight feet wide, and initial tests demonstrated they can jointly cool down to four Kelvin in under five days, reaching a final temperature of below 15 millikelvin shortly after. Each module's vacuum enclosure offers up to 12 times more wiring space than the most widely used IBM quantum systems, enabling more chip-to-chip connections both within and between modules. IBM's new box-shaped design allows modules to connect in a tight row and use this larger space to directly link quantum processors with IBM's "L-coupler" technology. L-couplers connect separate quantum chips together to share information, communicate, and operate as part of a larger quantum computer. By 2027, IBM's quantum roadmap plans to use L-couplers to link multiple processors into a larger quantum computer with at least 1,000 programmable qubits, which are qubits that can be directly used to perform computations. Towards this goal, IBM will install IBM Quantum Nighthawk processors into the cryogenic modules later this year to expand operational performance testing. At the time Starling is delivered, IBM plans for each cryogenic module to house thousands of qubits. "Bringing fault-tolerant quantum computers to industries depends on several fundamental advances," said Jay Gambetta, Director of IBM Research and IBM Fellow. "The successful connection and operation of these cryogenic modules signals a leap forward in that direction and will accelerate our progress alongside continued innovation in quantum hardware, software, and algorithms."CLOUD QUANTUM COMPUTING:IonQannounced a collaboration with CMC Microsystems. This collaboration integrates IonQ's commercial trapped-ion quantum computing systems into Canada's FABrIC Quantum Computing Sandbox. The framework for this initiative is covered under a newly signed memorandum of understanding, which designates IonQ as a listed cloud quantum computing access provider for the QCS. The QCS is operated through FABrIC, an initiative backed by funding from the Government of Canada's Strategic Response Fund and managed by CMC Microsystems.QUANTUM SAFE CENTRE:IBM and the Singapore Institute of Technology, or SIT, are planning to establish the Quantum-Safe Centre, targeted for launch by the end of 2026, as a dedicated hub to accelerate Singapore's transition to quantum-safe cybersecurity. The Centre will help organizations assess risks, adopt new security approaches and develop the talent needed for the post-quantum era. The Quantum-Safe Centre, located in the SIT Punggol Campus within the Punggol Digital District, is designed to help organizations prepare for and transition to quantum-safe cryptograph. Siew San Tan, general manager and technology leader, IBM Singapore, said: "Singapore's critical infrastructure, enterprises, and government agencies are at a pivotal moment in their cybersecurity journey, and the time to prepare for the post-quantum risk is now. Through our collaboration with SIT and the establishment of the Quantum-Safe Centre, IBM is committed to supporting Singapore's organizations with the technology, expertise and capabilities they need to understand their cryptographic vulnerabilities and take decisive steps toward quantum-safe resilience. This initiative would help to ensure that Singapore's digital economy remains secure and trusted in the years ahead."INTEGRATION:Sealsqand PalmPay, a brand developed by Palm Technologies in India, announced a strategic partnership to collaborate on the integration of Sealsq's QS7001 hardware-security technology into Palm Technologies' existing and future PalmPay biometric-authentication products. Sealsq will provide its QS7001 technology and technical support for secure-element integration, while Palm Technologies will lead product architecture, biometric-system design, application development, firmware, system integration, local compliance and product deployment.PRODUCTION QUANTUM ADOPTION:D-Wave Quantumand NTT DOCOMO announced that DOCOMO has deployed a second D-Wave-powered quantum computing application in production. The new application reduced location registration signals generated when devices cross tracking area list boundaries by 65.3% at the daily peak while also reducing paging signals by 7.0%, lowering network signaling load and improving operational efficiency. "DOCOMO is showing telecom operators around the world what production quantum adoption looks like: move beyond a single use case and apply the technology to distinct, increasingly complex operational challenges," said Alan Baratz, CEO of D-Wave. "Telecom networks are highly complex, resource-constrained environments, and these results demonstrate how D-Wave's annealing quantum computing technology can help operators improve network performance and efficiency today."COLLABORATION:Quanta Computerand Quantinuumannounced a collaborative development agreement. Under the terms of the agreement, the companies plan to jointly develop critical hardware infrastructure supporting future generations of Quantinuum's quantum systems, combining Quantinuum's quantum technology with Quanta's expertise in scaling computing platforms. Quanta and Quantinuum aim to create a practical pathway from today's quantum systems to commercially deployable quantum computers capable of supporting broad enterprise and scientific adoption.QUANTUM DEVELOPMENT PROGRAM:Qtrex Quantumannounced that it is in discussions with a U.S. Department of Defense's research laboratory to establish a joint quantum development program. The parties are targeting the fourth quarter of 2026 to formalize the program. The laboratory already operates the company's AME system and is distinct from the U.S. government laboratory referenced in Qtrex's July 6, announcement, extending the company's disclosed footprint to a second U.S. government research institution. The program under discussion targets the layer where scaled quantum systems physically break: the interconnect.MOU:BTQ Technologieshas signed a memorandum of understanding, or MOU, with Itcenglobal, one of Korea's largest IT services groups, through its listed security platform subsidiary Itcen PNS. The signed MOU establishes a framework for collaboration between BTQ and Itcen PNS to integrate post-quantum cryptography, quantum-safe authentication, and next-generation security infrastructure for Korean and international markets.ANALYST COMMENTARY:Craig-Hallum initiated coverage of Horizon Quantumwith a Buy rating and $21 price target. The firm sees the company's Triple Alpha addressing more of the developer- and run-time stack than anywhere else in the world, and if it's successful in creating efficiencies at both points, Horizon Quantum will have a strategically important asset positioned at the crux of the new quantum world. This position in the hybrid quantum-classical dev-/run-time and applications mirrors the position that Microsoftbuilt in the classical client computing world nearly a half century ago, and this outcome could create very high returns, Craig-Hallum noted. As such, the firm believes Horizon Quantum deserves a place in any growth investor's portfolio.

BTQ Technologies Signs MOU with ITCENGLOBAL

BTQ Technologies has signed a Memorandum of Understanding, or MOU, with ITCENGLOBAL, one of Korea's largest IT services groups, through its listed security platform subsidiary ITCEN PNS. The signed MOU establishes a framework for collaboration between BTQ and ITCEN PNS to integrate post-quantum cryptography, quantum-safe authentication, and next-generation security infrastructure for Korean and international markets. The collaboration will focus on areas where quantum-resistant security is becoming increasingly important, including financial networks, digital identity, biometric authentication, public-sector systems, and enterprise security platforms.

Infleqtion Awarded Three Projects by DOE

Welcome to the latest edition of "Quantum Leap" where The Fly decodes news and activity in the quantum computing space.DOE PROJECTS:Infleqtionannounced it has been awarded three projects to accelerate American scientific research and innovation by the U.S. Department of Energy for the Genesis Mission. The projects include collaborations with Argonne National Laboratory, Brookhaven National Laboratory, Lawrence Livermore National Laboratory and University of Colorado Boulder and span AI-optimized quantum circuit design for nuclear applications, deployable atomic quantum sensing with Agentic AI and nuclear fusion energy research. AI data centers are pulling more power than the grid was ever built to handle, and the industry is recognizing that these types of issues are beyond the capabilities of classical computing alone," said Matthew Kinsella, CEO at Infleqtion. "By applying quantum computing to some of the hardest problems in nuclear and energy research, Infleqtion is playing a critical role in advancing the objectives of the Genesis Mission."C-SUITE TRANSITION:Quantum Computingannounced the appointment of Susan Hunt as chief revenue officer, or CRO, and that Pouya Dianat, who has served as the company's CRO, will transition into the newly created role of chief product officer, or CPO. Joining QCi as CRO, Susan Hunt is a technology executive with more than 30 years of experience driving revenue growth and commercializing technologies across enterprise software, artificial intelligence, cloud computing, telecommunications and emerging technology markets.QUANTUM READINESS INITIATIVE:Galaxy Digitalannounced the launch of the Galaxy Bitcoin Quantum Readiness Initiative, a multi-pillar program dedicated to preparing Bitcoin for the threat posed by advances in quantum computing. The initiative includes up to $5M in grant funding for developers working on post-quantum solutions for Bitcoin, a dedicated research and publishing program through Galaxy Research, and the formation of a quantum advisory council of experts in quantum computing and post-quantum cryptography. "As leaders in the digital assets space, we believe it's important that we help be part of the solution to any potential threat quantum computing poses to Bitcoin," said Mike Novogratz, founder and CEO of Galaxy. "This initiative reflects that commitment, creating practical steps to research, fund and support the work that keeps Bitcoin secure for the long run." Priority areas include implementation and review of quantum-resistant transaction proposals, development and integration of post-quantum signature schemes into Bitcoin, tooling for wallet and custodian migration, and formal security audits of proposed implementations. Grants will be evaluated individually and disbursed on a milestone basis and Galaxy expects to begin accepting applications immediately. Galaxy Research will publish ongoing analysis of the quantum threat to Bitcoin and the evolving landscape of developer efforts to address it with the aim of providing information on this topic for institutional investors, policymakers, and the developer community. A quantum advisory council has been formed to guide the initiative's research and evaluate grant proposals. Meeting regularly with Galaxy's research team and executives, the council will advise Galaxy on quantum-related preparedness and contribute to the initiative's public-facing research output. "There's a gap between the quantum computing world, which is moving fast, and the Bitcoin development world, which is just beginning to engage with post-quantum cryptography in earnest," said Alex Thorn, Head of Firmwide Research at Galaxy. "Galaxy's role is to bridge that gap through research that makes the threat legible to investors and policymakers, as well as grants that fund the developers doing the hardest technical work."DATA CENTER REFERENCE ARCHITECTURE:BTQ Technologiesannounce a strategic collaboration with Tidal PWR, a Texas-based developer of power generation and data center infrastructure for AI and advanced computing. The collaboration is intended to develop a trusted quantum data center reference architecture that can be applied across future large-scale facilities. The initial scope is expected to include quantum data center design principles, trusted supply chain requirements, vendor and device procurement standards, post-quantum cryptographic security considerations, and a repeatable deployment model for facilities seeking to integrate quantum systems into AI, high-performance computing, and enterprise data center environments.EXPERT COMMENTARY:Craig-Hallum initiated coverage of Infleqtion with a Buy rating and $19 price target. The firm sees quantum sensing as a critical technology for the military/government market, and sees applicability in the commercial market, as it provides significant advantages over classical versions. Infleqtion is a leader in the quantum sensing market, and this business provides the company with a baseline with a lower risk profile for investors seeking quantum exposure, according to Craig-Hallum.