Telefonica Germany has partnered with Amazon Web Services (AWS) to explore quantum technologies in its mobile network. The pilot project aims to optimise mobile tower placement, enhance security with quantum encryption, and provide insights for the development of 6G networks.
Quantum computing, known for its potential to outperform traditional systems, is expected to revolutionise industries, including telecommunications. Experts stress the importance of early engagement with prototypes to prepare for the arrival of powerful quantum systems. Telefonica’s Chief Technology & Information Officer, Mallik Rao, highlighted their proactive approach in integrating these emerging technologies.
Telefonica Germany has already made strides in modernising its network, recently migrating one million 5G customers to AWS cloud infrastructure. Plans are underway to transfer millions more over the next year and a half. Rao described the transition as smooth and beneficial for performance.
AWS and Telefonica’s collaboration underlines the growing interest among tech leaders in harnessing quantum mechanics for groundbreaking advancements in speed and security.
Funding for quantum computing has reached unprecedented levels, with startups in the sector securing around $1.5 billion in venture capital through 50 deals in 2024. This amount nearly doubles last year’s $785 million and surpasses the previous record set in 2022. The rise in funding may partly stem from the momentum of AI, which shares significant synergies with quantum technology.
Several high-profile investments have marked 2024. Colorado’s Quantinuum raised $300 million in January, valuing the company at $5 billion. In May, PsiQuantum in California secured a $620 million investment from the Australian government to develop a quantum computer near Brisbane. The United Kingdom’s Riverlane, focused on error correction in quantum systems, raised $75 million in Series C funding in August, adding to the sector’s record-breaking total.
The need for faster, more efficient computing has driven the growth of quantum technology, especially as AI models require immense computing power and energy. Quantum computing, able to perform complex calculations rapidly, is seen as a potential solution to these challenges. Its advantage lies in both speed and energy efficiency, potentially reducing energy needs by as much as 100 times compared to traditional supercomputers.
While AI isn’t the sole reason for quantum’s growing popularity, the two fields are becoming increasingly interconnected. Quantum computing’s applications range from life sciences to navigation, but its potential to enhance AI processing power and reduce energy consumption adds compelling value. As tech giants expand data centres to support AI, quantum technology may see continued interest and investment.
Korean SDT and Finland’s SemiQon have signed a Memorandum of Understanding (MOU) to establish a strategic partnership to advance quantum computing. That collaboration allows SDT to incorporate SemiQon’s silicon-based quantum processors (QPUs) into its quantum precision measurement equipment, enhancing scalability and stability in the quantum computing field.
SemiQon has developed QPUs that are compatible with existing infrastructure, which reduces production costs and facilitates mass production. Through this partnership, SDT expands its manufacturing capabilities into quantum technology, with both companies aiming to strengthen the global quantum computing market.
Both companies’ leaders expressed excitement about the potential impact of this collaboration, which is expected to fast-track the development of scalable and cost-effective quantum computers. The combination of SDT’s quantum precision technology and SemiQon’s silicon-based QPUs is a critical step toward realising general-purpose quantum computers operating at the million-qubit scale. The MOU is viewed as a foundation for the global commercialisation of quantum computing, with both SDT and SemiQon working together to enhance the industry’s stability and scalability.
Chinese researchers from Shanghai University have claimed a significant breakthrough in quantum computing, asserting that they breached encryption algorithms commonly used in banking and cryptocurrency. Led by Wang Chao, the team employed a quantum computer from Canada’s D-Wave Systems to exploit vulnerabilities in the Present, Gift-64, and Rectangle algorithms, which form the backbone of the Substitution-Permutation Network (SPN) structure underpinning advanced encryption standards (AES) widely used for securing cryptocurrency wallets.
While AES-256 is regarded as one of the most secure encryption standards, the researchers warn that the advent of quantum computers could pose a serious threat to traditional password protection. Their technique, based on quantum annealing, operates similarly to artificial intelligence algorithms, allowing for more efficient searches by circumventing obstacles that traditional methods struggle to overcome.
Despite these advancements, the researchers noted that practical limitations remain, such as environmental factors and hardware constraints that prevent a full-scale quantum attack at this time. However, they emphasised that future developments could uncover new vulnerabilities in current cryptographic systems.
Ethereum co-founder Vitalik Buterin has proposed a potential solution to mitigate the risk posed by quantum computing, suggesting a hard fork of the Ethereum blockchain to implement new wallet software and enhance security. He indicated that the necessary infrastructure for such a move could be developed promptly, providing a proactive approach to safeguarding user funds.
Israel-based startup Quantum Source has secured $50 million in funding to advance the development of quantum computers that utilise light-based technology. That approach, which generates photons for data processing, promises to be more efficient than traditional methods. By allowing quantum systems to operate at room temperature, Quantum Source’s technology eliminates the need for bulky, costly cooling systems, making it easier to deploy in standard data centres.
CEO Oded Melamed explained that their method offers significantly greater efficiency, potentially making quantum computers smaller and more practical for widespread use. The company plans to use the new funding to build a complete quantum system capable of generating millions of qubits, the essential units of quantum computing.
The funding round was led by California-based Eclipse and included investments from Standard Investments, Level VC, and Canon Equity. Since its founding in 2021, Quantum Source has raised $77 million and currently employs 45 people in its Tel Aviv suburb office.
The United States has announced new export controls targeting advanced technologies, including quantum computing and GAAFET chip technology, aligning with similar measures by international partners. The updated regulations cover quantum computing equipment, advanced semiconductor production, and additive manufacturing technologies.
Commerce official Alan Estevez emphasised that these controls aim to keep pace with technological advancements and enhance their effectiveness through international cooperation. The most notable changes involve stringent reporting requirements for foreign national employees working on quantum computing in the US, while GAAFET controls will focus on production rather than design.
Trade lawyer Kevin Wolf highlighted that while these measures are intended to safeguard technological advancements, they might impact hiring in the quantum sector. Celia Merzbacher from the Quantum Economic Development Consortium expressed concern that these reporting requirements could deter small companies from hiring foreign talent, potentially limiting their access to skilled professionals crucial for innovation.
Ericsson, Nokia, and Vodafone have united in a call to action for European policymakers to enhance digital competitiveness through advanced connectivity and digitalisation. They argue that achieving a true Digital Single Market is essential for fostering innovation and ensuring Europe can compete globally. The following initiative emphasises the need for coherent implementation of existing regulations and the avoidance of unnecessary regulatory burdens that could hinder the rapid deployment of digital infrastructure.
Ericsson, Nokia, and Vodafone highlight the importance of incentivising investment in advanced connectivity solutions, such as 5G and future 6G technologies. They stress that a modernised regulatory framework is crucial for maintaining healthy telecom operators capable of making substantial investments in infrastructure. This includes advocating for longer spectrum licenses and harmonised rules across the EU member states, facilitating a more robust telecommunications landscape.
Ericsson, Nokia, and Vodafone also propose that policymakers differentiate between business-to-business (B2B) and consumer-facing technologies when crafting regulations. Tailoring regulations to these sectors’ specific needs and operational structures will help create a more level playing field and address market failures effectively. This distinction is vital for fostering an environment where trusted companies can thrive and innovate.
Ericsson, Nokia, and Vodafone highlight the need for Europe to prepare for emerging technologies like quantum computing and AI. They advocate for policies encouraging experimentation and attracting private investment, ensuring Europe can leverage these advancements while addressing security challenges.
Quantum computing is on the brink of revolutionising industries like drug development and climate change mitigation, with experts predicting significant breakthroughs in the near future. Cambridge-based Riverlane, led by founder Steve Brierley, is at the forefront of this movement, having developed the world’s first quantum decoder chip to correct errors that currently hinder the technology. Brierley believes quantum computing will soon reach a ‘Sputnik’ moment, marking a significant leap forward in computational power.
Riverlane recently raised $75 million in Series C funding, a strong sign of investor confidence in the potential of quantum computing. The company’s vice president of quantum science, Earl Campbell, stated that within the next few years, quantum computers could achieve error-free operations on a large scale, allowing them to outperform conventional computers in certain tasks. This capability is particularly promising for simulating quantum systems, which could lead to breakthroughs in medicine, more efficient fertiliser production, and advanced battery technologies—all critical for addressing global challenges like climate change.
Despite the immense potential, quantum computing faces significant challenges, including the need for sophisticated error correction to manage the highly sensitive qubits at its core. However, with continued advancements and scaling, experts believe quantum computing will eventually solve problems deemed unsolvable by traditional methods. As the technology advances, there is a growing awareness of the need for regulatory frameworks to manage its impact, particularly given its potential to disrupt existing cryptographic systems and other critical areas.
Paris-based quantum computing startup Pasqal has inked a significant deal with Saudi Arabia’s oil giant Aramco, marking the installation of the kingdom’s first quantum computer. Scheduled for deployment in the latter half of 2025, Pasqal will oversee the installation, maintenance, and operation of a powerful 200-cubit quantum computer.
Georges-Olivier Reymond, CEO and co-founder of Pasqal expressed enthusiasm about the partnership, highlighting its role in advancing the commercial embrace of quantum technology within Saudi Arabia. The initiative follows Pasqal’s successful provision of quantum computers to both France and Germany. Notably, Alain Aspect, a co-founder of Pasqal, was awarded the 2022 Nobel Prize in Physics for groundbreaking experiments underpinning quantum mechanics, laying the foundation for quantum computing.
Why does it matter?
The allure of quantum computing lies in its potential to revolutionise computational capabilities, with projections suggesting that quantum computers could outpace today’s supercomputers by millions of times in certain computations. This partnership between Pasqal and Aramco signals a meaningful step towards harnessing the power of quantum technology to solve complex problems across various sectors, including energy, finance, and logistics. As the global race for quantum supremacy intensifies, collaborations like this one are pivotal in pushing the boundaries of technological innovation, promising transformative advancements with far-reaching implications for industries and societies worldwide.
In an interview given to Digital Watch Observatory, André Xuereb, Ambassador for Digital Affairs at the Office of the Permanent Secretary, Ministry for Foreign and European Affairs and Trade of Malta, provided insights into the world of quantum computing and its implications for diplomacy. Quantum computing, as described by Xuereb, harnesses the laws of quantum mechanics to tackle complex problems by exploiting the simultaneous states of quantum bits or qubits, offering unprecedented computational power.
Xuereb emphasised the transformative potential of quantum computing, particularly in areas like drug discovery and cryptography. With its ability to handle intricate molecular structures efficiently, quantum computers could revolutionise drug design and accelerate the development of new medicines. Additionally, the inherent properties of quantum computing pose challenges to traditional encryption methods, potentially compromising data security.
Addressing the emergence of quantum diplomacy, Xuereb underscored the need for international collaboration and governance frameworks to navigate the complexities of quantum technologies. Initiatives like the Open Quantum Institute in Geneva, a global platform for quantum research and development, aim to facilitate equitable access to quantum resources, bridging the gap between countries with varying technological capabilities. Meanwhile, major tech players such as Microsoft, Amazon, Google, and others, with their substantial investments in quantum technologies, are not only driving technological advancements but also shaping the diplomatic landscape by influencing policy discussions and international cooperation in this field.
Looking ahead, Xuereb advised future quantum diplomats to prioritise discussions around the implications of quantum technologies on global security and communication. With the advent of general-purpose quantum computers, the risk of cyber threats, such as the ability to break current encryption methods, and the need for secure communication channels become paramount diplomatic concerns. However, Xuereb emphasised the importance of striking a balance between leveraging quantum advancements for societal benefits and mitigating potential risks associated with their misuse, such as the potential for quantum computers to crack current encryption methods, leading to widespread data breaches and security vulnerabilities.
