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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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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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Rocket Lab deal lifts space stocks

Shares of Rocket Lab are surging after announcing an $8 billion acquisition of satellite communications operator Iridium Communications, helping lift a broader basket of space-related stocks as investors piled back into the sector.

Planet Labs, AST SpaceMobile and Redwire all traded higher alongside Rocket Lab, extending gains in an industry that has drawn enhanced investor attention in recent months in light of the strategic importance that governments place on space and satellite communications infrastructure.

In a presentation, Rocket Lab’s management called the purchase “a shortcut” for its satellite communications business.

Under the terms of the agreement, Iridium shareholders will receive $27 in cash and Rocket Lab stock, valuing Iridium at $54 per share. Backed by a $3.6 billion bridge loan committed by Deutsche Bank and Wells Fargo, Rocket Lab absorbs Iridium’s globally licensed spectrum and an active base of 2.5 million subscribers.

Rocket Lab has also remained one of the most active launch providers in the sector. The company completed its 12th launch of the year last week, maintaining one of the highest launch cadences among commercial space companies.

Today's rally helps offset a brutal stretch for the group. Rocket Lab shares had fallen over 35% over the prior month, while Planet Labs stock was down more than 40% and AST SpaceMobile stock was down around 30% over the same window.

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