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Collision 2019 - Day One
Alan Baratz of D-Wave Quantum (David Fitzgerald/Getty Images)

D-Wave Quantum touts tech breakthrough that lets gate models scale

You know what’s cool? Keeping a lot of qubits, together, cool.

Luke Kawa

D-Wave Quantum has announced a breakthrough that addresses a key challenge in developing superconducting gate-based quantum computers: how to gather a ton of quantum bits (or qubits) in the same place while keeping them all cool enough to function.

A particularly tricky problem of heat

We want quantum computers to be able to solve complex problems. Complex problems require these machines to utilize a lot of qubits. Those qubits, in a superconducting system, need to be housed in an extremely cold environment to operate.

But connecting and communicating with all those quantum processing units (or QPUs) via individual wires would result in too much heat, not to mention adding to the cost of the system.

D-Wave says it’s solved this problem through multiplexing (using one wire to communicate with a number of other chips) and bump bonding (stacking a QPU and a control chip together), as well as controlling qubits by magnetic fields.

“This industry-first milestone advances the development of commercially viable gate-model quantum computers by significantly reducing the wiring required to control large numbers of qubits without degrading qubit fidelity,” per the press release. “Using superconducting bump bonding and advanced cryogenic packaging techniques, D-Wave built a multichip package that integrates a high-coherence fluxonium qubit chip with a multilayer control chip.”

Annealing vs. gate-based

D-Wave is the major player in annealing quantum computing, an approach that solves more specialized optimization problems. The company has already been able to apply this on-chip cryogenic control technology to its annealing systems.

But gate-based quantum computers, which aim to address even more complex and broad queries, are the dominant approach, pursued by the likes of Rigetti Computing and IonQ as well as D-Wave.

 “We wanted to make sure that we had kind of the scalable control piece sort of nailed down, because we think that to get to broad quantum utility with gate-model architectures requires scaled, error-corrected architectures, which requires a lot of physical qubits,” said Dr. Trevor Lanting, chief development officer at D-Wave.

“This is basically proof that we can use the technology that exists that we’ve developed, and more or less in a very straightforward way, to control gate-model architectures.”

He added that D-Wave’s superconducting approach to quantum computing allows the firm to leverage preexisting manufacturing and packaging processes that have been developed, rather than having to build up a technology base from scratch. 

A solid first step

During the conference call that followed the release of Q3 earnings in November, CEO Dr. Alan Baratz highlighted gate-model development as a priority for D-Wave.

“ Up until now, our investment in gate has been light, mostly because we havent had the funds to be able to grow that investment all that much. Now with the roughly $830 million in the bank, we have the resources to be able to invest more in that program, both internal investment and through acquisition to accelerate the program,” he told Sherwood News.

“ We have one customer who has said, ‘When you have a gate-model system, I want it.’”

At the time, Baratz told us that what was ultimately announced today would mark the “first step” in the company’s gate-model program.

“ From there, we will go to a small logical qubit, a small surface code logical qubit to demonstrate that we can now use this technology to build error-correctable logical cubits,” he said. “And our hope would be to have that before the end of next year, and then well start scaling to larger surface code.”

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Carvana craters after Q4 earnings miss estimates

Used car retailer Carvana plummeted after fourth-quarter profits came in shy of estimates.

Adjusted EBITDA of $511 million came in below the consensus call for $535.7 million, more than offsetting better-than-expected sales of $5.6 billion (estimate: $5.27 billion).

Carvana sold 163,522 used vehicles to retail customers in the quarter, up 43% from last year and ahead of expectations. With that result, Carvana further closes its retail sales gap with rival CarMax, which sold 169,557 vehicles in its most recent quarter.

Carvana posted a retail gross profit per vehicle of $3,076, down 7.7% from the same period last year. In a letter to shareholders, Carvana said its reconditioning costs came in higher than expected in Q4, which led to an additional impact on retail gross profit per unit. Lower shipping fee revenue, higher non-vehicle costs, and higher industrywide retail depreciation rates also drove the decline, the company said.

Carvana said it expects to see elevated reconditioning costs again in the first quarter, but expects a sequential increase in retail GPU. Carvana said it expects “significant growth in both retail units sold and Adjusted EBITDA” in the first quarter and full year ahead.

As of Wednesday’s close, Carvana shares were down about 24% since an all-time closing high in January, after a report from short seller Gotham City questioning its accounting practices sent the stock reeling. A Carvana spokesperson told Sherwood News that the report was “inaccurate and intentionally misleading.”

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DoorDash reports earnings miss, underwhelming earnings guidance

DoorDash reported earnings results that missed Wall Street expectations and provided underwhelming earnings guidance Wednesday after the bell, which it attributed to harsh weather and increased spending.

For the final three months of 2025, DoorDash reported:

  • Earnings per share of $0.48, compared to the $0.59 analysts polled by FactSet were expecting.

  • Revenue of $3.9 billion, in line with the $3.9 billion analysts were penciling in.

  • Gross order value (the total amount spent on the platform) of $29.7 billion, compared to the $29.2 billion analysts were expecting.

For the current quarter, the company expects:

  • GOV between $31.0 billion and $31.8 billion, versus the $30.7 billion analysts are expecting.

  • Adjusted EBITDA between $675 million and $775 million, far below the $801.9 million analysts are expecting. The company said spending on Deliveroo, its recent UK acquisition, as well as extreme winter weather in the US are weighing on its profit guidance.

Shares fell as much as 11% in after-hours trading. The stock is down more than 20% so far this year.

DoorDash’s costs have gone up as it ramps up investment in autonomous delivery and international expansion, among other things. “This is a massive and expensive undertaking and honestly one you shouldn’t do if you thought your best days were behind you,” CEO Tony Xu said in a letter to shareholders.

Ethan Feller, a strategist at Zacks Investment Research, said the underlying business remains strong even if the stock faces pressure in the near term.

“None of these are structural issues, but soft guidance is soft guidance — and the market rarely gives credit for context when a stock is already under pressure,” he said.

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Figma spikes after reporting better-than-expected Q4 results, blowout Q1 and full-year sales guidance

Figma reported Q4 results that exceeded Wall Street’s expectations and robust sales guidance for the current quarter and full year.

Shares are spiking in after-hours trading.

For the final three months of 2025, the digital design and development platform company reported:

  • Revenue of $303.8 million, compared to the $293.1 million analysts were penciling in.

  • Adjusted earnings per share of $0.08, compared to the $0.07 analysts polled by Bloomberg expected.

For sales, management expects:

  • Q1 revenue between $315 million and $317 million (estimate: $293.6 million).

  • Full-year revenue between $1.366 billion and $1.374 billion (estimate: $1.29 billion).

The lower ends of these ranges are above the highest analyst sales estimates for both Q1 and 2026 as a whole.

This marks the company’s second earnings report since going public over the summer. Its share price has taken a hit this year alongside many of its software peers, and management will be looking to show that AI can be an accelerant, rather than a threat, to its business. On Tuesday, Figma announced a partnership with Anthropic to integrate AI coding tools.

“Our healthy balance sheet and positive free cash flow gives us the flexibility to continue investing in AI and the platform while maintaining financial discipline for sustainable, long-term growth,” CFO Praveer Melwani said in the press release.

As of the close on Wednesday, the stock was down 35% for the year and roughly 80% below its closing level at the time of its July IPO.

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Record labels dip as Google adds AI music generation to its Gemini app

Google on Wednesday said it’s rolling out the ability for Gemini app users aged 18 and up to generate 30-second AI music tracks.

The tool is available globally, as Google launches beta access to its Lyria 3 generative-AI music model.

Addressing the potential for skirting the lines of copyright law (as seen in other recent DeepMind AI tools), Google said:

“If your prompt names a specific artist, Gemini will take this as broad creative inspiration and create a track that shares a similar style or mood. We also have filters in place to check outputs against existing content. We recognize that our approach might not be foolproof, so you can report content that may violate your rights or the rights of others.”

Shares of record labels including Universal Music Group and Warner Music dropped 2% on the news. Spotify briefly dipped before rebounding, and Sony shares also saw a slight decline.

Last month, Morgan Stanley published a survey that found up to 60% of Gen Z respondents listen to AI music, for an average of three hours per week. Earlier this year, Bandcamp banned all music wholly or substantially generated using AI.

Addressing the potential for skirting the lines of copyright law (as seen in other recent DeepMind AI tools), Google said:

“If your prompt names a specific artist, Gemini will take this as broad creative inspiration and create a track that shares a similar style or mood. We also have filters in place to check outputs against existing content. We recognize that our approach might not be foolproof, so you can report content that may violate your rights or the rights of others.”

Shares of record labels including Universal Music Group and Warner Music dropped 2% on the news. Spotify briefly dipped before rebounding, and Sony shares also saw a slight decline.

Last month, Morgan Stanley published a survey that found up to 60% of Gen Z respondents listen to AI music, for an average of three hours per week. Earlier this year, Bandcamp banned all music wholly or substantially generated using AI.

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