Quantum Computing Moves Closer to Reality

Once dismissed as a distant dream, quantum computing is back in the spotlight, now seen as a potential game-changer in the race for more computing power. Amid growing advancements in quantum chips and error correction, QuEra, a Boston-based startup, has secured a staggering $230 million in funding from major investors, including Google and SoftBank. The company plans to use this capital to accelerate its mission: constructing a fully functional and "useful" quantum computer within the next three to five years.

 

A Unique Funding Approach

Unlike traditional equity rounds, QuEra’s latest funding comes in the form of a convertible note, which will convert into equity during the company’s next funding round. This structure allows the startup to continue growing without setting a firm valuation at this stage. The exact timing of its next equity round remains uncertain, according to interim CEO Andy Ory.

So far, QuEra has raised close to $50 million, including a $17 million round in 2021. The latest investment includes backing from Google (as the lead investor), SoftBank Vision Fund, Valor Equity Partners, and existing investors like QVT Family Office and Safar Partners. Though QuEra has not disclosed its valuation, COO Yuval Boger hinted that the funding marks a "very substantial increase" from its previous valuation. Estimates suggest the company could now be worth around $400 million.

 

Generating Revenue and Expanding Cloud Services

Unlike many quantum startups still stuck in the R&D phase, QuEra is already generating revenue. The company recently sold a quantum computer for $41 million to Japan, where it will be integrated with Nvidia’s classical computing technology for a new supercomputer project. Additionally, QuEra has been offering cloud-based quantum computing services since 2022 through AWS, utilizing its first-generation 256-qubit machine. This service primarily serves pilot programs and proof-of-concept experiments.

The company plans to expand its cloud services to other platforms, though no official partnerships have been announced. Interestingly, despite Google’s investment, the funding deal does not include any exclusive agreements with Google Cloud Platform.

 

Quantum Investment Boom

QuEra’s massive funding round is part of a broader surge in quantum computing investments. In recent weeks:

• Paris-based Alice & Bob raised $104 million.
• UK-based Riverlane, focused on quantum error correction, secured $75 million.
• US-based SEEQC, a quantum chip maker, received $30 million.
• Israel-based Quantum Machines is reportedly raising $100 million.
• Last year, Quantinuum raised $300 million, achieving a $5 billion valuation, with talks of going public at $10 billion.

With so much funding flowing into quantum startups, it’s clear that investors see immense potential. However, the field remains fragmented, with multiple competing approaches all working toward reducing error rates and improving computational stability.

 

The Race for a Fully Functional Quantum Computer

QuEra aims to build a neutral atom quantum supercomputer, which utilizes lasers to cool atoms, reducing errors in calculations. The company believes this approach will ultimately lead to a scalable, commercially viable quantum computer.

"We think we have the right architectural approach to reach what we consider the holy grail—a quantum computer with a true advantage over classical computing," Ory stated. "With partners like Google and the top-tier talent we’ve attracted, we are positioned to be among the few companies capable of delivering the first scalable, useful quantum machine."

Despite the excitement, the journey remains uncertain. Unlike traditional tech industries, quantum computing isn’t a sprint—it’s a marathon with no defined finish line. QuEra’s co-founder, Alex Keesling, who originally developed the company’s core technology, now oversees its technical implementation as the company refines its hardware.

 

The Future of Quantum Computing

The long-term vision for quantum computing is transformative. As computing demands grow, especially with the rise of AI and big data, quantum computers could offer unprecedented processing power.

Ory believes that reaching 100 logical, error-corrected qubits—capable of running a million operations without failure—will unlock real-world applications in fields like material science, life sciences, simulation, and optimization problems.

For now, quantum computing remains in uncharted territory, but with significant financial backing and promising technological advancements, QuEra and its competitors are inching closer to making the impossible a reality.