- Amazon’s (AMZN) new Ocelot quantum chip with nine cubits enters a competitive field led by Google’s Willow at 105 cubits and Microsoft’s Majorana at eight, though Google’s real-world demos have driven market impact despite its adoption challenges.
- The quantum sector saw declines despite Amazon’s news, with Rigetti Computing Inc. (RGTI) down 10% to $8.35, D-Wave Quantum (QBTS) down nearly 7% to $5.73, IonQ Inc. (IONQ) down 13.20% to $25.97, and Quantum Computing Inc. (QUBT) down 9.12% to $6.23.
- Uncertainty persists about quantum computing’s timeline, with estimates ranging from two to thirty years, as NVIDIA’s upcoming Quantum Day in March could shift perspectives following Jensen Huang’s cautionary 30-year outlook.
Amazon’s (AMZN) unveiling of its first quantum computing chip, dubbed Ocelot, marks another milestone in the intensifying race among tech giants to dominate this cutting-edge field, as highlighted by CNBC’s Deirdre Bosa in a recent Tech Check segment. With nine qubits, Ocelot joins a growing list of quantum advancements, following Microsoft’s Majorana chip with eight cubits and Google’s towering Willow chip, which boasts 105 cubits. Qubits, a critical measure of quantum computing power, indicate a system’s capacity to tackle increasingly complex problems, and Google’s lead in this metric is stark. Bosa emphasized that while other factors like quality, stability, and error correction play significant roles, Google’s ability to pair its technical prowess with real-world demonstrations has given it an edge, sparking a market surge that lifted its stock and fueled a bull run among smaller quantum-focused firms in December last year.
Yet, despite today’s news of Amazon’s entry into the fray, the quantum sector is experiencing a downturn. Shares of Rigetti Computing Inc. (RGTI) fell 10% to $8.35, D-Wave Quantum (QBTS) dropped nearly 7% to $5.73, IonQ Inc. (IONQ) declined 13.20% to $25.97, and Quantum Computing Inc. (QUBT) slipped 9.12% to $6.23. This red wave across the sector suggests investor skepticism persists, possibly echoing sentiments stirred by Nvidia (NVDA) CEO Jensen Huang’s comments a month ago, when he cautioned that practical quantum computing might still be 15 – 30 years away, effectively halting a prior rally. Bosa noted this timeline debate – ranging from two to thirty years – remains a central question, with upcoming events like NVIDIA’s Quantum Day in March poised to offer further clarity.
Google’s dominance, with Willow’s 105 cubits dwarfing Amazon’s nine and Microsoft’s eight, positions it as a technical leader, yet Bosa pointed out a recurring challenge: translating innovation into widespread adoption. In artificial intelligence, Google has struggled to capitalize on early advantages, often leaving features in beta while competitors like OpenAI seize the market. Quantum computing could be the next frontier for tech supremacy, but Google’s history suggests being first isn’t enough without effective execution. Amazon’s Ocelot and Microsoft’s Majorana signal intensifying competition, potentially accelerating the timeline Huang questioned. For now, though, the market’s reaction – evident in the declines of Rigetti, D-Wave, IonQ, and Quantum Computing Inc. – reflects a cautious stance, balancing excitement over these developments with uncertainty about their near-term impact.
WallStreetPit does not provide investment advice. All rights reserved.–
Leave a Reply