It feels like quantum computing, which has long been pushed into the theoretical realm, is now returning to the agenda as a potentially viable alternative to expensive races for further computing power.
Shortly after some notable advances in quantum chips and error correction (two important hurdles in quantum computing), the startup from Boston, called Quera, raised $230 million on Tuesday from Google and SoftBank and others said it has ended. The company will use the money to power its next stage of growth by building a “useful” complete quantum computer over the next three to five years.
In particular, fundraising is not fair. This is a convertible note that Quera’s team will be converted fairly when the company raises the equity round next time.
The company, currently led by interim CEO Andy Ory (an Enterprise Tech veteran), refused to say when the next stock funding round will arrive.
To date, Quera has raised just under $50 million, including the $17 million round it covered in 2021. The company lists investors in the convertible memo include Google, SoftBank Vision Fund, Valor Equity Partners and existing investors at Quera – QVT. Family Office, Suffer Partners, and more.
The company does not provide ratings, but Quera’s COO Yuval Boger said it represents a “very significant increase” compared to Quera’s previous round. “I know I probably have a very good sense of what the valuation of the crucial $230 million round will be like,” he added.
Our conservative guess is $400 million, but this is a convertible memo so anything can happen.
One detail gives Quera a notable boost. The company is already making money. Specifically, Ory cited Japan for a $41 million sale of Quera Quantum Computer, which will be used in conjunction with Nvidia Technology (Running Classical Computing) in its new supercomputer project.
The company also generates some revenue from its cloud services. In November 2022, we began offering quantum computing via AWS via 256 Kut Computers (first generation machines). Borger said the service is primarily used for pilots and proof of concept experiments.
Quera wants to extend its product to other cloud providers, but has announced nothing so far. Boger said the funding from Google is supported by Google’s Quantum AI business unit, but does not include any kind of tie-ins from the Google Cloud Platform.
Quera’s funding is part of a seemingly notable surge for quantum computing startups. Less than two weeks later, Alice & Bob, another Paris-based quantum computing startup, won $104 million. UK-based Cambridge is building technology to fix quantum errors, raising $75 million last August, while Quantum Chip Maker Seeqc raised $30 million last month.
Israeli quantum machines are also reportedly raising $100 million. Quantum Machines declined to comment on these reports.
Perhaps the biggest of all last year, Quantinuum raised $300 million at a $5 billion valuation. There is currently a list talk at a $10 billion valuation.
But we haven’t seen fully functional commercial quantum machines yet, so much of the work these companies are doing is scattered across different approaches.
Quera aims to build a neutral atom quantum supercomputer. This relies in part on using lasers to cool atoms in the computing process to reduce errors.
“We think there’s a good architectural approach to actually reaching what we consider to be the Holy Grail, a discontinuous quantum computing with actual quantum advantages,” Ollie said in an interview.
“Take a partner like Google to see what we’re doing and the people we’ve been able to attract […] It’s all come together and we feel validated. Quera is in a position to allow its resources, science and its people to become one of the few companies that actually provide us with the first scalable and useful quantum computers,” he said. I said that.
But so far, with a large number of approaches, it’s more like a marathon than a race, and there’s no finishing line. Alex Keesling, co-founder and former CEO of Quera, who invented the technology at the core of its product, is responsible for overseeing technical implementations as Quera works to build hardware. The company, like everyone else in the space, is working on flexible deadlines as it gets closer to bringing ideas to reality.
Long-term promises are appetizing. As computing power becomes more expensive and new technologies like AI put a lot of pressure on resources, the industry is looking for solutions that can leap these workloads or at least complement them with something more powerful . Devotees say quantum computing is the solution.
“We believe that if we can reach 100 logical error correction key bits with the ability to execute 100 instructions without errors, we believe there are applications useful in quantum computing that offer more advantages than regular computers.” Ory said. “We believe it. I think it will create enormous value in material science, life science, simulation, optimization issues, and more.”
Updated to note that Google is not leading this funding.
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