Rigetti Computing (RGTI) CEO Subodh Kulkarni recently cautioned investors to temper their expectations following a dramatic 48% spike in the company’s stock price. Speaking on the Yahoo Finance podcast, “Opening Bid,” Kulkarni emphasized the importance of not getting distracted by the volatility of stock market movements but to focus instead on the core technology development at Rigetti.
Kulkarni acknowledged the excitement around quantum computing but was clear about the reality of the industry’s current state. He stated that while quantum computing is advancing, it is still in the early stages, primarily in research and development. He highlighted that the company’s immediate focus is on improving the technology rather than on rapid sales growth or immediate profitability, which he believes is still years away.
When questioned about the hype surrounding quantum computing, particularly after comments from tech leaders like Jensen Huang of Nvidia (NVDA) and Mark Zuckerberg of Meta (META), Kulkarni clarified the timeline for practical quantum computing applications. He suggested that while quantum computing will certainly become a reality, the exact timeline for when it becomes “useful” is subjective and depends on defining what “useful” means. Rigetti, according to Kulkarni, anticipates achieving “quantum advantage” within three to five years, but this does not equate to immediate commercial success or explosive sales growth.
He also addressed investor questions about profitability and cash flow, noting that Rigetti is currently in an investment phase with a burn rate of about $60 million a year, supported by a cash reserve of approximately $225 million. This financial runway, he suggested, should last the company for at least three to four years, potentially extending further with government contracts, thus reducing the immediate need for new capital through stock offerings despite the stock’s recent performance.
Regarding the technology itself, Kulkarni explained that Rigetti specializes in gate-based quantum computing using superconducting qubits. This approach differs from other quantum computing modalities like annealing, practiced by companies like D-Wave (QBTS). He detailed Rigetti’s roadmap, aiming for significant improvements in qubit count and fidelity by the end of 2025, with a particular focus on developing quantum chiplets to scale up the technology efficiently.
Kulkarni’s message to investors was one of patience and focus on long-term technological advancements rather than short-term market fluctuations. He urged a balanced view, recognizing quantum computing’s potential but also the industry’s current developmental stage, where sales are predominantly from government contracts and not yet from widespread commercial applications. His leadership approach is to keep the team grounded in technology development, aiming for sustainable growth and eventual profitability as the technology matures.
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