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Digital Watch newsletter – Issue 97 – March 2025

Snapshot: The developments that made waves

AI governance

Chinese companies are increasingly backing DeepSeek‘s AI, marking a pivotal moment for the industry.

The European Commission has launched the OpenEuroLLM Project, a new initiative to develop open-source, multilingual AI models.

Australia has banned Chinese AI startup DeepSeek from all government devices, citing security risks.

World leaders gathered in Paris for the second day of the Artificial Intelligence (AI) Action Summit, where the focus turned to balancing national interests with global cooperation.

In his op-ed, From Hammurabi to ChatGPT, Jovan Kurbalija draws on the ancient Code of Hammurabi to argue for a principle of legal accountability in modern AI regulation and governance.

Technologies

DeepSeek, an up-and-coming AI startup from China, is rapidly pushing forward the release of its latest AI model, R2, following the remarkable success of its predecessor, R1.

Elon Musk’s AI startup, xAI, has unveiled its latest AI model, Grok-3, which the billionaire claims is the most advanced chatbot technology.

The New York Times has officially approved the use of AI tools for its editorial and product teams, allowing AI to assist with tasks such as generating social media copy, writing SEO headlines, and coding.

Microsoft has announced a groundbreaking quantum computing chip, Majorana 1, which it claims could make useful quantum computers a reality within years.

China has warned that the United States‘ efforts to pressure other nations into targeting its semiconductor industry will ultimately backfire.

Infrastructure

A state-of-the-art space lab on the outskirts of Cairo, touted as Africa’s first satellite production facility, has been built with substantial Chinese involvement.

Elon Musk’s Starlink network is facing increasing competition in the satellite internet market, particularly from SpaceSail, a Shanghai-based company backed by the Chinese government, and Amazon’s Project Kuiper.

Cybersecurity

The EU Commission introduced a proposal aimed at strengthening the EU’s response to large-scale cyber attacks.

Hackers have stolen $1.5 billion from Dubai-based cryptocurrency exchange Bybit in what is believed to be the largest digital heist in history.

Following the recent security breach at Bybit, major cryptocurrency firms have joined forces to combat the attack and mitigate its impact.

Digital rights

Elon Musk has reignited his rivalry with OpenAI by leading a consortium in a staggering $97.4 billion bid to acquire the nonprofit that governs the ChatGPT creator.

South Korea’s National Intelligence Service (NIS) has raised concerns about the Chinese AI app DeepSeek, accusing it of excessively collecting personal data and using it for training purposes.

TikTok has introduced a new method for US Android users to download the app directly from its website, bypassing restrictions imposed by app stores.

South Korea’s data protection authority has suspended new downloads of the Chinese AI app DeepSeek, citing concerns over non-compliance with the country’s privacy laws.

A US federal judge has denied a request to temporarily block Elon Musk’s Department of Government Efficiency (DOGE) from accessing data from seven federal agencies or making further workforce cuts.

Legal

An online education company has filed a lawsuit against Google, claiming its AI-generated search overviews are damaging digital publishing.

The Trump administration is reevaluating the conditions of CHIPS and Science Act subsidies, which allocate $39 billion to boost domestic semiconductor production.

Elon Musk-owned social media platform X has successfully removed a judge from a German court case concerning demands for real-time election data.

Trump Media & Technology Group and Rumble have filed an emergency motion in a US court against Brazilian Supreme Court Justice Alexandre de Moraes.

Internet economy

Chinese investors are flocking to AI-related stocks, betting that the success of home-grown startup DeepSeek will propel China to the forefront of the AI race amid the escalating Sino-US technology conflict.

In a meeting at the White House on Friday, US President Donald Trump and Nvidia CEO Jensen Huang discussed the emerging challenges posed by China’s AI advancements, particularly the rapid rise of DeepSeek that has disrupted the global tech industry.

Macron announced private sector investments totalling around 109 billion euros ($112.5 billion) in its AI sector at the Paris AI summit, according to President Emmanuel Macron.

Elon Musk, who is leading Donald Trump’s federal cost-cutting initiative, has announced that efforts are underway to shut down the United States Agency for International Development (USAID).

President Donald Trump confirmed on Wednesday that he was in active discussions with China over the future of TikTok, as the US seeks to broker a sale of the popular app.

Elon Musk’s social media company X is currently discussing raising funds from investors at a $44 billion valuation.

Development

Alibaba has announced plans to invest at least 380 billion yuan ($52.44 billion) in cloud computing and AI infrastructure over the next three years.

US drugmaker Amgen has announced a $200 million investment in a new technology centre in southern India, which will focus on using AI and data science to support the development of new medicines.

Sociocultural

A German court has ruled that Elon Musk’s social media platform X must provide researchers with data to track the spread of misinformation ahead of the country’s national election on 23 February.

French prosecutors have launched an investigation into X, formerly known as Twitter, over alleged algorithmic bias.

Meta has launched a new initiative with UNESCO to enhance AI language recognition and translation, focusing on underserved languages.

A recent report by Australia’s eSafety regulator reveals that children in the country are finding it easy to bypass age restrictions on social media platforms.

A Russian court has fined Google 3.8 million roubles (£32,600) for hosting YouTube videos that allegedly instructed Russian soldiers on how to surrender.

Mexico has strongly opposed Google’s decision to rename the Gulf of Mexico as the ‘Gulf of America’ for US Google Maps users.

For more information on cybersecurity, digital policies, AI governance and other related topics, visit diplomacy.edu.

Data Protection Day 2025: A new mandate for data protection

Data Protection Day 2025 brought experts to Brussels and online to discuss the latest privacy challenges. The event featured key speeches, panels, and discussions on data protection enforcement, international cooperation, and the impact of emerging technologies.

In his keynote, Leonardo Cervera Navas warned about algorithms being used to destabilise the EU democracies and the power imbalance caused by tech monopolies. Despite these challenges, he emphasised that European values and regulatory tools like the Digital Clearing House 2.0 could help uphold privacy.

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A panel moderated by Kait Bolongaro examined data protection priorities and enforcement challenges. European Data Protection Supervisor Wojciech Wiewiorowski stressed the role of strong data protection authorities (DPAs) in ensuring GDPR compliance. Matthias Kloth highlighted the modernisation of Convention 108+ as a key legal advancement. The discussion also covered international cooperation, with panellists agreeing that while global collaboration is necessary, privacy standards must not be diluted.

Audience questions raised concerns about the complexity and cost of enforcing privacy rights. Wiewiorowski saw no major GDPR overhaul in the near future but suggested procedural adjustments. Jo Pierson proposed that civil society organisations assist individuals facing legal barriers. The discussion also touched on China’s DeepSeek AI, with panellists refraining from labelling it a threat but stressing the need for Europe to control AI training datasets. Wiewiorowski likened the AI race to the Cold War’s ‘Sputnik moment,’ questioning if Europe was falling behind.

A session on future data protection challenges, led by Anna Buchta, highlighted regulatory complexity. Marina Kaljurand noted a significant digital knowledge gap among European lawmakers, complicating policy decisions. She also raised concerns about the UK’s adequacy decision, which expires in June 2025, and worsening US-EU relations under Trump. UK Information Commissioner John Edwards emphasised AI’s disruptive impact on biometrics and tracking, while Alberto Di Felice from DIGITALEUROPE criticised excessive bureaucracy, advocating for streamlined regulatory oversight.

Beatriz de Anchorena, head of Argentina’s data protection authority, championed Convention 108+ as a global privacy standard. Argentina, the first non-European country to receive EU adequacy, has remained a leader in data protection reform.

A discussion on neuroscience and privacy, moderated by Ella Mein, explored ethical concerns surrounding brain data. Professor Marcello Ienca warned of potential ‘neuro-discrimination’ and the dangers of exploiting brain data. ECtHR Jurisconsult Anna Austin highlighted legal challenges, noting the high standards required for data waivers.

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The final panel, led by Gabriela Zanfir-Fortuna, addressed the need for stronger enforcement. Johnny Ryan of the Irish Council for Civil Liberties criticised the EU’s slow response to data misuse, while Nora Ni Loideain emphasised the GDPR’s role in giving DPAs greater enforcement power.

The event underscored the need for robust regulation, global cooperation, and better enforcement mechanisms to protect privacy in a rapidly evolving digital landscape.

Legacy media vs social media and alternative media channels

The rapid spread of digital information has transformed communication, offering opportunities and challenges. While social media and alternative platforms have democratised access to information, they have also enabled misinformation, deepfakes, and sensationalism to flourish. The tension between traditional media and these new forms of communication is at the heart of current debates on content policy and media integrity.

The case of Novak Djokovic at the 2025 Australian Open highlights this shift. After a Channel 9 journalist made derogatory remarks about him and his Serbian supporters, Djokovic refused an on-court interview and took to social media to share his perspective. His video went viral, attracting support from figures like Elon Musk, who criticised traditional media as a ‘negativity filter,’ This incident underscored the ability of social media to bypass mainstream media narratives, raising questions about journalistic objectivity, editorial oversight, and the role of direct communication in shaping public discourse.

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Similarly, alternative media’s influence on political discourse was evident in Joe Rogan’s podcast, The Joe Rogan Experience. In 2024, Donald Trump’s appearance on the podcast allowed him to engage with audiences outside traditional news constraints, potentially boosting his presidential campaign. In contrast, Kamala Harris declined an invitation after requesting pre-approved questions. This difference illustrated how politicians navigate new media environments—some embracing unscripted discussions, others preferring controlled narratives. The case of Vladimir Klitschko further demonstrated how alternative media offers international figures a platform for nuanced discussions on global issues.

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Elon Musk’s experience with the media further highlights these dynamics. After traditional media misrepresented a gesture he made at a public event, Musk turned to X (formerly Twitter) to counter the narrative. His criticism of ‘legacy media’ as biassed and slow to adapt resonated with many, reinforcing the growing preference for direct, unfiltered communication. However, this shift presents risks, as social media and alternative platforms lack the editorial oversight that traditional outlets provide, allowing misinformation to spread more easily.

The rise of podcasts, independent media, and social networks has disrupted traditional journalism, offering new ways to engage audiences. While these platforms provide greater freedom of expression, they raise concerns about accuracy, misinformation, and accountability. The challenge remains in balancing openness with factual integrity, ensuring that media—whether traditional or alternative—serves the public responsibly in an era where the boundaries between truth and fabrication continue to blur.

Vodafone collaborates with IBM on quantum-safe cryptography

Vodafone UK has teamed up with IBM to explore quantum-safe cryptography as part of a new Proof of Concept (PoC) test for its mobile and broadband services, particularly for users of its ‘Secure Net’ anti-malware service. While quantum computers are still in the early stages of development, they could eventually break current internet encryption methods. In anticipation of this, Vodafone and IBM are testing how to integrate new post-quantum cryptographic standards into Vodafone’s existing Secure Net service, which already protects millions of users from threats like phishing and malware.

IBM’s cryptography experts have co-developed two algorithms now recognised in the US National Institute of Standards and Technology’s first post-quantum cryptography standards. This collaboration, supported by Akamai Technologies, aims to make Vodafone’s services more resilient against future quantum computing risks. Vodafone’s Head of R&D, Luke Ibbetson, stressed the importance of future-proofing digital security to ensure customers can continue enjoying safe internet experiences.

Although the PoC is still in its feasibility phase, Vodafone hopes to implement quantum-safe cryptography across its networks and products soon, ensuring stronger protection for both business and consumer users.

For more information on these topics, visit diplomacy.edu.

Quantum computing could render today’s encryption obsolete

The rise of quantum computing poses a serious threat to modern encryption systems, with experts warning that critical digital infrastructure could become vulnerable once quantum devices reach sufficient power.

Unlike classical computers that process binary bits, quantum computers use qubits, allowing them to perform vast numbers of calculations simultaneously.

This capability could make breaking widely used encryption methods, like RSA, possible in minutes—something that would take today’s computers thousands of years.

Although quantum systems powerful enough to crack encryption may still be years away, there is growing concern that hackers could already be collecting encrypted data to decode it once the technology catches up.

Sensitive information—such as national security data, intellectual property, and personal records—could be at risk. In response, the US National Institute of Standards and Technology has introduced new post-quantum encryption standards and is encouraging organisations to transition swiftly, though the scale of the upgrade needed across global infrastructure remains immense.

Updating web browsers and modern devices may be straightforward, but older systems, critical infrastructure, and the growing number of Internet of Things (IoT) devices pose significant challenges.

Satellites, for instance, vary in how easily they can be upgraded, with remote sensing satellites often requiring full replacements. Cybersecurity experts stress the need for ‘crypto agility’ to make the transition manageable, aiming to avoid a chaotic scramble once quantum threats materialise.

For more information on these topics, visit diplomacy.edu.

New Microsoft’s quantum chip sparks fresh debate over Bitcoin’s security

According to Bitcoin exchange River, Microsoft’s latest quantum computing chip, Majorana 1, could accelerate the timeline for making Bitcoin resistant to quantum threats. While the risk of a quantum attack remains distant, experts warn that preparations must begin now. The chip, launched on 19 February, is part of a growing race in quantum technology, with Google’s Willow chip also making headlines in December.

River suggests that if quantum computers reach one million qubits by 2027-2029, they could crack Bitcoin addresses in long-range attacks. Though some argue such a scenario is still decades away, River insists early action is key. The potential threat has reignited discussions on BIP-360, a proposed upgrade to strengthen Bitcoin’s defences against future quantum advancements.

Critics remain sceptical, arguing that quantum computing is still in its infancy, with major technical challenges to overcome. Some believe traditional banking systems, which hold far greater assets than Bitcoin, would be targeted first. Others see quantum developments as an opportunity, suggesting they could help fortify Bitcoin’s security rather than weaken it.

For more information on these topics, visit diplomacy.edu.

Microsoft unveils groundbreaking quantum computing chip

Microsoft has announced a groundbreaking quantum computing chip, Majorana 1, which it claims could make useful quantum computers a reality within years. The company believes this innovation puts it ahead in the race to unlock quantum computing’s vast potential.

Unlike classical computers, quantum systems could perform calculations in fields like medicine and chemistry that would otherwise take millions of years, although they also pose risks to current encryption standards.

The Majorana 1 chip relies on a particle called the Majorana fermion, theorised in the 1930s. Microsoft says its unique design makes the chip less error-prone than its competitors.

Despite having fewer qubits than chips from Google and IBM, the company argues that the lower error rates mean fewer qubits are needed for practical applications.

Microsoft’s development of Majorana 1 combines advanced materials like indium arsenide and aluminium, using a superconducting nanowire to observe and control the Majorana particles.

Fabricated at its labs in Washington and Denmark, the chip was described as a ‘high risk, high reward’ endeavour by Jason Zander, a senior Microsoft executive.

Quantum physicist Philip Kim from Harvard University praised the innovation, calling it an exciting step forward. While scaling up the technology remains a challenge, experts suggest Microsoft’s approach could lead to significant advancements in quantum computing.

For more information on these topics, visit diplomacy.edu.

Google targets commercial quantum computing within five years

Google plans to introduce real-world quantum computing applications within five years, according to its head of quantum research, Hartmut Neven. The company’s prediction challenges Nvidia CEO Jensen Huang‘s estimate that practical quantum computing remains at least 15 to 30 years away. Google has been developing quantum technology since 2012 and recently announced a breakthrough that could accelerate the field.

Potential applications for quantum computing include advancements in materials science, drug discovery, and energy solutions. Google has already demonstrated quantum processors capable of solving complex problems far beyond the reach of traditional computers. A recent study published in Nature highlights new progress in quantum simulation, bringing the company closer to commercial viability.

The timeline for practical quantum computing remains uncertain, with predictions varying widely among experts. Nvidia’s scepticism caused a sharp drop in quantum-related stocks, but Google remains optimistic about achieving its goal. Governments and businesses continue to monitor quantum developments closely due to their potential impact on cybersecurity, finance, and healthcare.

Can quantum computing break the cryptocurrency’s code?

The digital revolution has brought in remarkable innovations, and quantum computing is emerging as one of its brightest stars. As this technology begins to showcase its immense potential, questions are being raised about its impact on blockchain and cryptocurrency. With its ability to tackle problems thought to be unsolvable, quantum computing is redefining the limits of computational power.

At the same time, its rapid advancements leave many wondering whether it will bolster the crypto ecosystem or undermine its security and decentralised nature. Can this computing breakthrough empower crypto, or does it pose a threat to its very foundations? Let’s dive deeper.

What is quantum computing?

Quantum computing represents a groundbreaking leap in technology. Unlike classical computers that process data in binary (0s and 1s), quantum computers use qubits, capable of existing in multiple states simultaneously due to quantum phenomena such as superposition and entanglement.

For example, Google’s new chip, Willow, is claimed to solve a problem in just five minutes—a task that would take the world’s fastest supercomputers approximately ten septillion years—highlighting the extraordinary power of quantum computing and fuelling further debate about its implications.

These advancements enable quantum machines to handle problems with countless variables, benefiting fields such as electric vehicles, climate research, and logistics optimisation. While quantum computing promises faster, more efficient processing, its intersection with blockchain technology adds a layer of complexity so the story takes an interesting twist.

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How does quantum computing relate to blockchain?

Blockchain technology relies on cryptographic protocols to secure transactions and ensure decentralisation. Cryptocurrencies like Bitcoin and Ethereum use elliptic curve cryptography (ECC) to safeguard wallets and transactions through mathematical puzzles that classical computers cannot solve quickly.

Quantum computers pose a significant challenge to these cryptographic foundations. Their advanced processing power could potentially expose private keys or alter transaction records, threatening the trustless environment that blockchain depends upon.

Opportunities: Can crypto benefit from quantum computing?

While the risks are concerning, quantum computing offers several opportunities to revolutionise blockchain:

Faster transactions: Quantum algorithms could significantly accelerate transaction validation, addressing scalability challenges.
Enhanced security: Developers can leverage quantum principles to create stronger, quantum-secure algorithms.
Smarter decentralisation: Quantum-powered computations could enhance the functionality of smart contracts and decentralised apps (DApps).

By embracing quantum advancements, the blockchain industry could evolve to become more robust and scalable— hopefully great news for the crypto community, which is optimistic about the potential for progress.

How does quantum computing threaten cryptocurrency?

Despite its potential benefits, quantum computing poses significant risks to the cryptocurrency ecosystem, depending on how it is used and who controls it:

Breaking public key cryptography
Quantum computers equipped with Shor’s algorithm can decrypt ECC and RSA encryption. Tasks that would take classical computers millennia could be accomplished by a quantum computer in mere hours. This capability threatens to expose private keys, allowing hackers to access wallets and steal funds.
Mining oligopoly
The mining process, vital for cryptocurrency creation and transaction validation, depends on computational difficulty. Quantum computers could dominate mining activities, disrupting the decentralisation and fairness fundamental to blockchain systems.
Dormant wallet risks
Wallets with exposed public keys, particularly older ones, are at heightened risk. A quantum attack could compromise these funds before users can adopt protective measures.

With projections suggesting that quantum computers capable of breaking current encryption standards could emerge within 10–20 years—or perhaps even sooner—the urgency to address these threats is intensifying.

Solutions: Quantum-resistant tokens and cryptography

Where there is a challenge, there is a solution. The crypto industry is proactively addressing quantum threats with quantum-resistant tokens and post-quantum cryptography. Lattice-based cryptography, for example, creates puzzles too complex for quantum computers, with projects like CRYSTALS-Kyber leading the charge. Hash-based methods, such as QRL’s XMSS, ensure data integrity, while code-based cryptography, like the McEliece system, uses noisy signals to protect messages. Multivariate polynomial cryptography also adds robust defences through complex equations.

As we can see, promising solutions are already actively working to uphold blockchain principles. These innovations are crucial not only for securing crypto assets but also for maintaining the integrity of blockchain networks. Quantum-resistant measures ensure that transaction records remain immutable, safeguarding the trust and transparency that decentralised systems are built upon.

The quantum future for crypto

Quantum computing holds tremendous promise for humanity, but it also brings challenges, particularly for blockchain and cryptocurrency. As its capabilities grow, the risks to existing cryptographic protocols become more apparent. However, the crypto community has shown remarkable resilience, with quantum-resistant technologies already being developed to secure the ecosystem. This cycle of threats and solutions is a perpetual motion—each technological advancement introduces new vulnerabilities, met with equally innovative defences. It is the inevitable price to pay for embracing the modern decentralised finance era and the transformative potential it brings.

The future of crypto does not have to be at odds with quantum advancements. With proactive innovation, collaboration, and the implementation of quantum-safe solutions, blockchain can survive and thrive in the quantum era. So, is quantum computing a threat to cryptocurrency? The answer lies in our ability to adapt. After all, with great power comes great responsibility—and opportunity.

Quantum computing stocks drop sharply after Nvidia CEO’s warning

Quantum computing stocks experienced a sharp decline on Wednesday following comments from Nvidia CEO Jensen Huang, who predicted practical quantum computers are still two decades away. His timeline dampened expectations in a sector already facing significant investment without broad applications.

Rigetti Computing, D-Wave Quantum, Quantum Computing, and IonQ saw their shares plummet over 40%, with more than $8 billion in combined market value lost. Investment chief Ivana Delevska of Spear Invest, which holds Rigetti and IonQ shares, supported Huang’s prediction, noting it took Nvidia a similar period to develop accelerated computing.

The sector had previously surged due to a technological breakthrough at Google, with stocks rising at least threefold last year. Despite the optimism, revenue generation remains minimal, with IonQ valued at over $10 billion but expected to generate just $41.6 million in 2024 revenue.

Craig-Hallum analyst Richard Shannon suggested government contracts could drive future revenue, cautioning investors not to focus solely on current low earnings. He also warned quantum computing could eventually disrupt parts of classical computing, where Nvidia plays a leading role.

India sets new benchmarks in global leadership

India solidified its global leadership in 2024, making remarkable strides in pharmaceuticals, biotechnology, defence, nuclear energy, and space exploration. Initiatives like the Production Linked Incentive (PLI) scheme and breakthroughs such as the indigenous antibiotic Nafithromycin propelled the pharmaceutical sector’s exports to USD 28 billion. Biotechnology expanded 13-fold over the past decade, achieving a valuation of USD 130 billion, with ambitions to hit USD 300 billion by 2030.

The nation’s defence sector reached unprecedented levels of self-reliance, recording indigenous production worth 15.24 billion USD and a 30-fold rise in exports. Achievements like the Agni-5 missile test and the deployment of advanced ballistic missile defence systems highlighted India’s strategic capabilities. In nuclear energy, capacity nearly doubled to 8,180 MW, with a roadmap to triple this by 2032 through projects like Bharat Small Reactors.

India’s space programme achieved significant milestones, including the approval of the Venus Orbiter Mission and Chandrayaan-4, as well as advancements in private sector contributions. The foundation of a second spaceport and the celebration of National Space Day underscored the sector’s growing prominence. Additionally, the solar mission Aditya-L1 made groundbreaking contributions to space weather predictions.

Infrastructure and emerging technologies further reinforced India’s position on the global stage. Developments such as the completion of a Hyperloop test track and the GNSS-enabled tolling system showcased futuristic planning. Quantum communication, AI, and blockchain innovations, including the Vishvasya platform, demonstrated India’s commitment to leading the next technological revolution.

Quantum leap: The future of computing

If AI was the buzzword for 2023 and 2024, quantum computing looks set to claim the spotlight in the years ahead. Despite growing interest, much remains unknown about this transformative technology, even as leading companies explore its immense potential.

Quantum computing and AI stand as two revolutionary technologies, each with distinct principles and goals. Quantum systems operate on the principles of quantum mechanics, using qubits capable of existing in multiple states simultaneously due to superposition. Such systems can address problems far beyond the reach of classical computers, including molecular simulations for medical research and complex optimisation challenges.

AI and quantum computing intersect in areas like machine learning, though AI still depends on classical computing infrastructure. Significant hurdles remain for quantum technology, including qubit errors and scalability. The extreme sensitivity of qubits to external factors, such as vibrations and temperature, complicates their control.

Experts suggest quantum computers could become practical within 10 to 20 years. Classical computers are unlikely to be replaced, as quantum systems will primarily focus on solving tasks beyond classical capabilities. Leading companies are working to shorten development timelines, with advancements poised to transform the way technology is utilised.

Huge investments in quantum computing

Investments in quantum computing have reached record levels, with start-ups raising $1.5 billion across 50 funding rounds in 2024. Figure like this one nearly doubles the $785 million raised the previous year, setting a new benchmark. The growth in AI is partly driving these investments, as quantum computing promises to handle AI’s significant computational demands more efficiently.

Quantum computing offers unmatched speed and energy efficiency, with some estimates suggesting energy use could be reduced by up to 100 times compared to traditional supercomputers. As the demand for faster, more sustainable computing grows, quantum technologies are emerging as a key solution.

Microsoft and Atom Computing announce breakthrough

In November 2024, Microsoft and Atom Computing achieved a milestone in quantum computing. Their system linked 24 logical qubits using just 80 physical qubits, setting a record in efficiency. This advancement could transform industries like blockchain and cryptography by enabling faster problem-solving and enhancing security protocols.

Despite the challenges of implementing such systems, both companies are aiming to release a 1,000-qubit quantum computer by 2025. The development could accelerate the adoption of quantum technologies across various sectors, paving the way for breakthroughs in areas such as machine learning and materials science.

Overcoming traditional computing’s limitations

Start-ups like BlueQubit are transforming quantum computing into a practical tool for industries. The San Francisco-based company has raised $10 million to launch its Quantum-Software-as-a-Service platform, enabling businesses to use quantum processors and emulators that perform tasks up to 100 times faster than conventional systems.

Industries such as finance and pharmaceuticals are already leveraging quantum optimisation. Specialised algorithms are addressing challenges like financial modelling and drug discovery, showcasing quantum computing’s potential to surpass traditional systems in tackling complex problems.

Google among giants pushing quantum computing

Google has recently introduced its cutting-edge quantum chip, Willow, capable of solving a computational problem in just five minutes. Traditional supercomputers would require approximately 10 septillion years for the same task.

The achievement has sparked discussions about quantum computing’s link to multiverse theories. Hartmut Neven, head of Google’s Quantum AI team, suggested the performance might hint at parallel universes influencing quantum calculations. Willow’s success marks significant advancements in cryptography, material science, and artificial intelligence.

Commercialisation is already underway

Global collaborations are fast-tracking quantum technology’s commercialisation. SDT, a Korean firm, and Finnish start-up SemiQon have signed an agreement to integrate SemiQon’s silicon-based quantum processing units into SDT’s precision measurement systems.

SemiQon’s processors, designed to work with existing semiconductor infrastructure, lower production costs and enhance scalability. These partnerships pave the way for more stable and cost-effective quantum systems, bringing their use closer to mainstream industries.

Quantum technologies aiding mobile networks

Telefonica Germany and AWS are exploring quantum applications in mobile networks. Their pilot project aims to optimise mobile tower placement, improve network security with quantum encryption, and prepare for future 6G networks.

Telefonica’s migration of millions of 5G users to AWS cloud infrastructure demonstrates how combining quantum and cloud technologies can enhance network efficiency. The project highlights the growing impact of quantum computing on telecommunications.

Addressing emerging risks

Chinese researchers at Shanghai University have exposed the potential threats quantum computing poses to existing encryption standards. Using a D-Wave quantum computer, they breached algorithms critical to modern cryptographic systems, including AES-256, commonly used for securing cryptocurrency wallets.

Although current quantum hardware faces environmental and technical limitations, researchers stress the urgent need for quantum-resistant cryptography. New encryption methods are essential to safeguard digital systems against future quantum-based vulnerabilities.

Quantum computing promises revolutionary capabilities but must overcome significant challenges in scaling and stability. Its progress depends on interdisciplinary collaboration in physics, engineering, and economics. While AI thrives on rapid commercial investment, quantum technology requires long-term support to fulfil its transformative potential.