Record investment in quantum computing driven by AI growth

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.