- Rigetti Computing (RGTI), led by CEO Subodh Kulkarni, partnered with Quanta Computer in a $500 million deal to accelerate superconducting quantum computing, combining Rigetti’s Bay Area tech expertise with Quanta’s top-tier server manufacturing to target a multi-billion-dollar market.
- With $220 million in cash from late 2023 raises and Quanta’s $250 million, Rigetti aims to reach commercialization in four to five years, capitalizing on a quantum stock surge that lifted its market cap from roughly $300 million in November to $2.05 billion currently.
- Kulkarni highlighted ongoing challenges like improving fidelity and error correction, predicting quantum computers will achieve practical “quantum advantage” in data centers by 2029, competing with diverse approaches from Amazon (AMZN), Google (GOOG), and Microsoft (MSFT).
Rigetti Computing (RGTI), under the leadership of CEO Subodh Kulkarni, is poised to reshape the future of computation through a landmark $500 million partnership with Taiwan-based Quanta Computer, aimed at accelerating the development and commercialization of superconducting quantum computing. Speaking on Bloomberg Technology, Kulkarni expressed palpable excitement about the deal, which unites Rigetti’s pioneering technology from its Berkeley base and Fremont fabrication facility with Quanta’s prowess as the world’s top manufacturer of CPU and GPU servers. This collaboration, he argued, leverages complementary strengths to fast-track a technology that promises to deliver computing power far beyond classical systems, not just faster but also more energy-efficient, addressing a market opportunity he pegged at hundreds of billions of dollars over the next decade or two.
The financial underpinnings of this venture reflect both strategic timing and market momentum. Kulkarni noted that Rigetti ended the previous year with $220 million in cash and no debt, bolstered by funds raised in November and December, providing a runway of three to four years toward potential cash flow positivity. Quanta’s contribution of $250 million further solidifies this trajectory, aligning with a surge in quantum computing enthusiasm that has lifted Rigetti’s market capitalization from roughly $300 million in November to $2.05 billion currently, a volatility mirrored across the sector with announcements from giants like Google (GOOG), Microsoft (MSFT), and Amazon (AMZN). Kulkarni emphasized that while capital markets remain an option for future funding, the current cash position, paired with Quanta’s investment, positions Rigetti to drive superconducting quantum technology toward practical deployment without immediate financial strain.
Kulkarni’s vision extends beyond financials to the technical hurdles and transformative potential of quantum computing. He acknowledged the complexity of the field, where Rigetti, alongside competitors like IBM, Google, Microsoft, Amazon, and even China’s government, grapples with improving chip fidelity, incorporating error correction, increasing qubit counts, and enhancing gate speeds—challenges echoed by Amazon CEO Andy Jassy’s comments on their Ocelot chip’s error correction advancements. Kulkarni predicted that within four to five years, these efforts could culminate in quantum computers appearing in data centers, delivering what he termed “quantum advantage”—the point where they outperform classical systems on practical applications. This timeline, underpinned by the $500 million partnership, positions Rigetti and Quanta to not only compete but lead in a crowded field of diverse methodologies, from Amazon’s cat qubits to Google’s qubit scaling and Microsoft’s novel architectures, all racing to turn quantum’s mind-boggling potential into tangible reality.
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