Quantum computing

AI and quantum tech reshape global business

AI and quantum computing are reshaping global industries as investment surges and innovation accelerates across sectors like finance, healthcare and logistics. Microsoft and Amazon are driving a major shift in AI infrastructure, transforming cloud services into profitable platforms.

Quantum computing is moving beyond theory, with real-world applications emerging in pharmaceuticals and e-commerce. Google’s development of quantum-inspired algorithms for virtual shopping and faster analytics demonstrates its potential to revolutionise decision-making.

Sustainability is also gaining ground, with companies adopting AI-powered solutions for renewable energy and eco-friendly manufacturing. At the same time, digital banks are integrating AI to challenge legacy finance systems, offering personalised, accessible services.

Despite rapid progress, ethical concerns and regulatory challenges are mounting. Data privacy, AI bias, and antitrust issues highlight the need for responsible innovation, with industry leaders urged to balance risk and growth for long-term societal benefit.

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EU and Japan deepen AI cooperation under new digital pact

In May 2025, the European Union and Japan formally reaffirmed their long-standing EU‑Japan Digital Partnership during the third Digital Partnership Council in Tokyo. Delegations agreed to deepen collaboration in pivotal digital technologies, most notably artificial intelligence, quantum computing, 5G/6G networks, semiconductors, cloud, and cybersecurity.

A joint statement committed to signing an administrative agreement on AI, aligned with principles from the Hiroshima AI Process. Shared initiatives include a €4 million EU-supported quantum R&D project named Q‑NEKO and the 6G MIRAI‑HARMONY research effort.

Both parties pledge to enhance data governance, digital identity interoperability, regulatory coordination across platforms, and secure connectivity via submarine cables and Arctic routes. The accord builds on the Strategic Partnership Agreement activated in January 2025, reinforcing their mutual platform for rules-based, value-driven digital and innovation cooperation.

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Quantum computing faces roadblocks to real-world use

Quantum computing holds vast promise for sectors from climate modelling to drug discovery and AI, but it remains far from mainstream due to significant barriers. The fragility of qubits, the shortage of scalable quantum software, and the immense number of qubits required continue to limit progress.

Keeping qubits stable is one of the most significant technical obstacles, with most only lasting microseconds before disruption. Current solutions rely on extreme cooling and specialised equipment, which remain expensive and impractical for widespread use.

Even the most advanced systems today operate with a fraction of the qubits needed for practical applications, while software options remain scarce and highly tailored. Businesses exploring quantum solutions must often build their tools from scratch, adding to the cost and complexity.

Beyond technology, the field faces social and structural challenges. A lack of skilled professionals and fears around unequal access could see quantum benefits restricted to big tech firms and governments.

Security is another looming concern, as future quantum machines may be capable of breaking current encryption standards. Policymakers and businesses must develop defences before such systems become widely available.

AI may accelerate progress in both directions. Quantum computing can supercharge model training and simulation, while AI is already helping to improve qubit stability and propose new hardware designs.

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Bitcoin’s security under quantum threat

A leading cybersecurity expert has raised concerns that Bitcoin’s underlying cryptography could be broken within five years. David Carvalho, CEO of Naoris Protocol, warned that quantum computers could soon break the cryptography securing Bitcoin transactions.

He believes the threat could materialise sooner than most anticipate, urging immediate action.

Carvalho pointed to Shor’s algorithm as the core concern. Once sufficiently advanced quantum machines are deployed, they could crack Bitcoin’s defences in seconds.

Roughly 30% of all Bitcoin—around 6 to 7 million BTC—is currently held in wallets with exposed public keys, making them especially vulnerable.

He also referenced major breakthroughs in the field, including Microsoft’s Majorana chip and IBM’s planned release of a fault-tolerant quantum computer by 2029.

With over 100 quantum systems already active and thousands more expected by 2030, Carvalho advised investors to migrate funds to quantum-secure wallets and update their security protocols.

However, Adam Back, CEO of Blockstream and an early Bitcoin contributor, believes the technology is still decades away from posing a real threat. He did acknowledge that future advancements may force even early adopters to move their coins to quantum-resistant addresses.

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Quantum tech could break online security, warns India

The Indian Computer Emergency Response Team (CERT-In), alongside cybersecurity firm SISA, cautions that these powerful machines could soon break the encryption used to protect everything from online banking to personal identity systems.

CERT-In’s new white paper outlines how attackers may already be stockpiling encrypted data to unlock later using quantum tools, a tactic called ‘harvest now, decrypt later’. If left unaddressed, this strategy could expose sensitive data stored today once quantum technology matures.

AI is adding to the urgency. As it becomes more embedded in digital systems, it also increases access to user data, raising the stakes if encryption is compromised. The biggest digital systems in India, including Aadhaar, cryptocurrencies, and smart devices, are seen as particularly exposed to this looming risk.

Everyday users are advised to take precautions: update devices regularly, use strong passwords with multi-factor authentication, and avoid storing sensitive data online long-term. Services like Signal or ProtonMail, which use strong encryption, are also recommended.

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Denmark launches quantum initiative with world‑leading computer

Positioning itself at the forefront of quantum innovation, Denmark has made a €80 million commitment led by the Novo Nordisk Foundation and EIFO.

The Quantum initiative, operating under the new entity QuNorth, aims to deploy a system named Magne, expected to deliver unprecedented computational power when it becomes operational in late 2026 or early 2027.

Magne will boast approximately 50 logical qubits, enabling tasks beyond the reach of classical computers. Built by Atom Computing and powered by Microsoft’s quantum stack, it marks one of the first Level 2 quantum systems with integrated error correction.

The ambition is to eventually scale to hundreds or even a thousand logical qubits, entering a realm of applications that include transformative chemistry modelling, accelerated drug discovery and optimised logistics.

Boasting full Danish ownership, Magne is based in Copenhagen, and QuNorth will facilitate access for Nordic businesses and researchers.

Stakeholders see this as a vital step in stimulating Europe’s quantum ecosystem and boosting national competitiveness amid global tech rivalries with the US and China.

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Quantum sector surges as Rigetti unveils modular machine

Quantum computing is progressing faster than expected, with Rigetti Computing achieving a major breakthrough. The company reached 99.5% median 2-qubit gate fidelity using a modular 36-qubit system—halving its error rate and moving closer to fault-tolerant computing.

The new machine, built from four 9-qubit chiplets, represents the industry’s largest multichip quantum system. Its modular design addresses the scalability challenges of single-chip models.

Rigetti’s superconducting qubits also outperform rivals by operating at significantly faster speeds.

Plans are in place to launch a 100+-qubit system before the end of 2025. Backing from DARPA, the US Air Force, and the UK government further validates Rigetti’s approach. Partnerships with Nvidia and Quanta Computer add commercial strength.

Despite modest revenue, Rigetti holds $575 million in cash with no debt and owns the sector’s first dedicated quantum chip factory. True commercial quantum advantage is expected between 2026 and 2028.

Shares of Rigetti, along with other quantum computing firms like IonQ and D-Wave, have surged in recent months, outperforming the broader market.

Rigetti offers strong potential—but remains a high-risk pick in a competitive field.

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Europe’s quantum ambitions meet US private power and China’s state drive

Quantum computing could fundamentally reshape technology, using quantum bits (qubits) instead of classical bits. Qubits allow complex calculations beyond classical computing, transforming sectors from pharmaceuticals to defence.

Europe is investing billions in quantum technology, emphasising technological sovereignty. Yet, it competes fiercely with the United States, which enjoys substantial private investment, and China, powered by significant state-backed funding.

The UK began quantum initiatives early, launching the National Quantum Programme 2014. It recently pledged £2.5 billion more, supporting start-ups like Orca Computing and Universal Quantum, alongside nations like Canada, Israel, and Japan.

Europe accounted for eight of the nineteen quantum start-ups established globally in 2024, including IQM Quantum Computers and Pasqal. Despite Europe’s scientific strengths, it only captured 5% of global quantum investments, versus 50% for the US.

The European Commission aims to strengthen quantum capabilities by funding six chip factories and a continent-wide Quantum Skills Academy. However, attracting sufficient private investment remains a significant challenge.

The US quantum industry thrives, driven by giants such as IBM, Google, Microsoft, IonQ, Rigetti, and D-Wave Quantum. Recent breakthroughs include Microsoft’s topological qubit and Google’s Willow quantum chip.

D-Wave Quantum has demonstrated real-world quantum advantages, solving complex optimisation problems in minutes. Its technology is now used commercially in logistics, traffic management, and supply chains.

China, meanwhile, leads in state-driven quantum funding, investing $15 billion directly and managing a $138 billion tech venture fund. By contrast, US federal investment totals about $6 billion, underscoring China’s aggressive approach.

Global investment in quantum start-ups reached $1.25 billion in Q1 2025 alone, reflecting a shift towards practical applications. By 2040, the quantum market is projected to reach $173 billion, influencing global economics and geopolitics.

Quantum computing raises geopolitical concerns, prompting democratic nations to coordinate through bodies like the OECD and G7. Interoperability, trust, and secure infrastructure have become essential strategic considerations.

Europe’s quantum ambitions require sustained investment, standard-setting leadership, and robust supply chains. Its long-term technological independence hinges on moving swiftly beyond initial funding towards genuine strategic autonomy.

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Scalable quantum light factory chip unveiled

A milestone in quantum technology was achieved with the world’s first silicon chip that integrates quantum light sources and stabilising control electronics, fabricated using a standard commercial 45 nm semiconductor process. The compact chip, roughly 1 mm square, generates correlated photon pairs, key for secure communication, sensing, and computing, while built-in feedback circuits maintain performance under variable conditions.

Engineers from Northwestern University, Boston University and UC Berkeley collaborated to embed microring resonators, photodiodes, on-chip heaters and control logic, packaging them into a single, scalable system. The result is the first demonstration of a “quantum light factory” chip produced in mass-production foundries, bypassing bulky lab setups and paving the path for widespread deployment.

Researchers believe this advancement marks a crucial step forward. The ability to manufacture quantum photonic systems at scale could lead to secure quantum networks, advanced sensing platforms, and eventually photonic quantum computers. By proving the integration of quantum and classical electronics on shared silicon technologies is possible, the team has opened a new frontier in quantum engineering.

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First single-photon universal quantum system due 2026

Dutch startup QuiX Quantum has raised €15 million in Series A funding to deliver the world’s first single-photon‑based universal photonic quantum computer by 2026. This ambitious project was backed by Invest‑NL, the European Innovation Council, PhotonVentures, Oost NL and Forward One.

Since its 2019 founding, QuiX Quantum has set benchmarks with 8‑qubit and 64‑qubit photonic processors, including a notable delivery to the German Aerospace Center in 2022. Its next objective is a universal gate‑set system with fast feed‑forward electronics and single‑photon sources, essential components for fault‑tolerant, large‑scale quantum computing.

The investment will also bolster Europe’s quantum photonics supply chain. QuiX Quantum plans to deploy its systems in practical fields such as chemical simulation, pharmaceutical discovery, fraud detection and precision manufacturing, marking a key step toward commercialising quantum technology.

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