IBM rallies after committing to spend $10 billion to pursue the holy grail of quantum computing
IBM boasts of “more quantum computers than reported by all other industry players combined.”
IBM would like you to remember that it’s a major player in quantum computing, too.
In a filing, Big Blue revealed plans to spend more than $10 billion over the next five years with the goal of “delivering the first large-scale fault-tolerant quantum computer by 2029.”
This holy grail that IBM’s seeking can loosely be described as a system that’s big enough, powerful enough, and reliable enough to have substantial commercial relevance.
Shares are up about 3% in early trading.
The commitment comes after the US government announced grants to nine quantum computing companies last week. IBM received $1 billion to establish a quantum foundry called Anderson, with the company putting $1 billion of its money into that venture, as well.
For reference, the largest pure-play quantum computing company by market cap, IonQ, has spent about $1.3 billion on operating expenses and capex over the past five years.
The filing includes this not-so-humblebrag about IBM’s perceived position in the industry (emphasis added):
“To date, IBM has deployed over 90 quantum systems, including more quantum computers than reported by all other industry players combined. The company has also built a global client and partner ecosystem spanning more than 325 Fortune 500 companies, startups, universities, and government agencies already using IBM’s global fleet of quantum computers to tackle scientific challenges across chemistry, biology, materials science, and more.”
