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Julich Research Center Inaugurates Europe's First 5,000+ Qubit Quantum Computer
An employee of Forschungszentrum Jülich stands next to the D-Wave Systems Advantage quantum computer (Lukas Schulze/Getty Images)
AI QUANTUM BLOCKCHAIN

The surprising pit stop on the road to AI quantum computing integration

Blockchain is the “first step” here, according to D-Wave Quantum CEO Dr. Alan Baratz.

Luke Kawa

D-Wave Quantum’s recent claim of “quantum supremacy” in identifying optimal sensors was noteworthy beyond the flashy headline and scientific results. Per the company, it would’ve required more than the world’s annual electricity consumption for a supercomputer to have solved the problem (oh, and nearly 1 million years).

When I do a 30,000-foot scan of the tech space, I see artificial intelligence (which requires so much compute and energy) and quantum computing (which is seemingly offering lots of compute with less energy required). It just makes you want to set them up on a blind date and look forward to attending their wedding a year later.

D-Wave Quantum CEO Dr. Alan Baratz is certainly excited by the prospect of getting more involved in AI. The company’s recent spike in bookings was fueled by the order of a quantum computer that’s going to be hooked up to a supercomputer in Germany “to explore new workflows in a few different areas, but especially AI,” Baratz said.

He added something that made our eyebrows go up, though, by saying that recent experiments between quantum computing and blockchain technology are a key pit stop on the path to greater integration of quantum computing and AI.

When we asked him why these seeming soulmates hadn’t already gotten hitched, he told us:

“Theres a first step along the way: blockchain. We also posted a paper on the archive last week where we showed how you could take the computation we did to demonstrate supremacy and use it to create a hashing function. Everybody knows that blockchain and cryptocurrency are based on hashing functions. And then we showed how you could use this quantum hashing function to actually build a blockchain...

Now, whats so important about quantum proof of work is a) its kind of by construction quantum-safe. But b) its much more energy efficient. This will consume far less energy to do the hashing and the mining than what happens today, for example, with bitcoin, which is a massive energy consumer. 

So were very excited about this because if magnetic materials arent approachable enough, blockchain and cryptocurrency should be, and the fact that were now talking about and demonstrating a quantum blockchain based on our quantum computers — thats pretty exciting. And thats the first step toward low energy computation.

Now we are also working on how to apply these technologies in AI and machine learning. And we started working on how to integrate our quantum systems with GPUs to do more energy efficient model training. Weve got some good early results, but on small datasets. Were just now starting to work on larger datasets and were going to move that forward, and especially once we get the Julich system integrated with the GPU system there, we should be able to push that ball even further.”


It’s true that one thing mining bitcoin and AI data centers have in common is that they require a boatload of energy, and if quantum can solve for the notoriously energy-sucking mining process, it’s not impossible to imagine it might do the same for AI training and inference, though they are different problems to solve.

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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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