TLDR
- D-Wave’s quantum computer outperformed a classical supercomputer, completing in minutes what would take the classical computer nearly one million years
- Company reported 128% year-over-year increase in bookings, reaching $23.9 million for 2024
- D-Wave’s consolidated cash balance now exceeds $300 million
- CEO Alan Baratz claims “quantum computational supremacy on a useful problem” as an industry first
- Other quantum computing stocks (QUBT, RGTI, IONQ) also surged following the announcement
D-Wave Quantum Inc. (NYSE: QBTS) has sent shockwaves through the quantum computing industry with a breakthrough that pushed its stock price sharply higher. The company announced that its annealing quantum computer outperformed one of the world’s most powerful classical supercomputers.
The quantum computer completed a complex simulation in minutes with a level of accuracy that would take the classical supercomputer nearly one million years to match. This achievement represents a major milestone for the industry.
D-Wave CEO Alan Baratz called the demonstration “quantum computational supremacy on a useful problem” and noted it was “an industry first.” He emphasized that previous claims of quantum systems outperforming classical computers have been disputed or involved random number generation with no practical value.
The breakthrough comes at a time when investors have been questioning the real-world applications of quantum computing. The technology applies quantum mechanics laws to solve highly complex problems more efficiently than existing computers.
According to D-Wave, solving the same problem using a classical supercomputer would require more than the world’s annual electricity consumption. The classical supercomputer in the comparison was built with graphics processing unit clusters.
The announcement triggered a surge in D-Wave’s stock price. Other quantum computing companies also saw their shares rise, including Quantum Computing (QUBT), Rigetti Computing (RGTI), and IonQ (IONQ).
The positive news comes after recent skepticism from Nvidia CEO Jensen Huang, who stated that we were roughly 20 years from seeing “very useful quantum computers.” This comment had previously dampened investor enthusiasm for the sector.
In direct contrast to Huang’s timeline, Baratz told analysts during the company’s fourth-quarter earnings call,
“At D-Wave, we are seeing first hand the value that Quantum is providing today for hundreds of companies. I’m not talking about 15 or 30 years from now, I’m talking about today.”
Along with the breakthrough announcement, D-Wave reported its financial results for the fourth quarter and year-end 2024. The company posted a wider-than-expected quarterly loss but exceeded revenue forecasts.
D-Wave achieved a 128% year-over-year increase in bookings, reaching $23.9 million for the year ended December 31, 2024. This growth demonstrates increasing commercial interest in the company’s quantum computing solutions.
Guidance exceedes Wall Street’s expectations
The company’s first-quarter guidance came in well above Wall Street’s expectations, further fueling investor confidence. D-Wave also reported a strengthened financial position with a consolidated cash balance now exceeding $300 million.
In the earnings announcement, Baratz reaffirmed the company’s mission “to help organizations realize the benefits of quantum computing now.” He pointed to “record bookings, a record cash position and an unequivocal demonstration” of their quantum system outperforming classical computing as evidence of progress.
D-Wave describes itself as the world’s first commercial supplier of quantum computers and the only company building both annealing and gate-model quantum computers. The company claims more than 100 organizations trust D-Wave with their toughest computational challenges.
According to company materials, D-Wave’s 5,000+ qubit Advantage™ quantum computers are available on-premises or via the cloud, supported by 99.9% availability and uptime. The company reports that over 200 million problems have been submitted to their systems to date.
The company states that customers apply their technology to address use cases spanning optimization, artificial intelligence, research, and other complex computational problems.
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