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Rani Molla

Amazon joins Alphabet and Microsoft in the quantum chip club

The first rule of Quantum Chip Club is you make a big announcement about being part of Quantum Chip Club.

Today, Amazon Web Services unveiled its first quantum chip, Ocelot, which “represents a breakthrough in the pursuit to build fault-tolerant quantum computers capable of solving problems of commercial and scientific importance that are beyond the reach of today’s conventional computers.”

It said scaling the chip to a “fully-fledged quantum computer capable of transformative societal impact would require as little as one-tenth of the resources associated with standard quantum error correcting approaches.”

Welcome to the club.

If you haven’t heard about the latest trend among the Silicon Valley tech giants, quantum chips are super powerful and can do in a few minutes what today’s supercomputers would take septillions — yes, septillions — of years to do.

Earlier this month, Microsoft released its first quantum chip, Majorana 1, which it billed similarly as “breakthrough” and a “transformative leap toward practical quantum computing.”

Late last year, Alphabet announced its latest and greatest quantum chip, Willow, which it lauded for its “breakthrough achievements,” including performing a benchmark computation that would take today’s fastest supercomputers 10 septillion years — “a number that vastly exceeds the age of the Universe” — in less than five minutes.

Amazon, which also launched an upgraded AI assistant Alexa+ yesterday, is up more than 1% premarket.

It said scaling the chip to a “fully-fledged quantum computer capable of transformative societal impact would require as little as one-tenth of the resources associated with standard quantum error correcting approaches.”

Welcome to the club.

If you haven’t heard about the latest trend among the Silicon Valley tech giants, quantum chips are super powerful and can do in a few minutes what today’s supercomputers would take septillions — yes, septillions — of years to do.

Earlier this month, Microsoft released its first quantum chip, Majorana 1, which it billed similarly as “breakthrough” and a “transformative leap toward practical quantum computing.”

Late last year, Alphabet announced its latest and greatest quantum chip, Willow, which it lauded for its “breakthrough achievements,” including performing a benchmark computation that would take today’s fastest supercomputers 10 septillion years — “a number that vastly exceeds the age of the Universe” — in less than five minutes.

Amazon, which also launched an upgraded AI assistant Alexa+ yesterday, is up more than 1% premarket.

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Rani Molla

Tesla investors like the idea of merging with SpaceX

Tesla is trading up about 2.5% in early trading Friday after reports Thursday that the Elon Musk-led company was considering a merger with SpaceX, another of Musk’s many companies.

That’s a better showing than the stock’s reaction to its better-than-expected earnings a day earlier, after which shares closed down 3.5%. Acquiring a very valuable, entirely different company, it turns out, is a more attractive prospect than watching an existing one’s revenue and profit decline.

Musk is also reportedly considering merging SpaceX with xAI, his artificial intelligence company, which recently combined with his social media platform, X.

Musk is also reportedly considering merging SpaceX with xAI, his artificial intelligence company, which recently combined with his social media platform, X.

tech
Jon Keegan

WSJ: OpenAI plans Q4 IPO in race to be the first AI startup to enter public markets

OpenAI was the first to the generative-AI market with ChatGPT, and now it hopes to be the first of its AI startup cohort to pull off an initial public offering, according to a report from The Wall Street Journal. The $500 billion startup is in a race against its $350 billion competitor Anthropic, which has also been exploring an IPO.

Per the report, OpenAI is in talks with banks to try for a fourth-quarter IPO this year, which has the potential to be one of the largest IPOs ever in a year that is expected to see many record-breaking tech companies tap into public markets to raise sizable new rounds of capital.

Ahead of a potential public listing, OpenAI is reportedly attempting to raise a massive round of private investment. The company is reportedly aiming to raise $100 billion, with Amazon potentially accounting for up to half of that target. Other investors in talks with OpenAI over the private fundraising round include Nvidia, Microsoft, and SoftBank.

Per the report, OpenAI is in talks with banks to try for a fourth-quarter IPO this year, which has the potential to be one of the largest IPOs ever in a year that is expected to see many record-breaking tech companies tap into public markets to raise sizable new rounds of capital.

Ahead of a potential public listing, OpenAI is reportedly attempting to raise a massive round of private investment. The company is reportedly aiming to raise $100 billion, with Amazon potentially accounting for up to half of that target. Other investors in talks with OpenAI over the private fundraising round include Nvidia, Microsoft, and SoftBank.

tech
Rani Molla

SpaceX is actually considering a merger with Tesla or xAI: Report

Bloomberg reports that Elon Musk’s SpaceX is considering merging with Musk’s Tesla. Earlier today, Reuters had reported that SpaceX was thinking of potentially merging with xAI ahead of SpaceX’s IPO this year.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

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