Quantum computing leaders merge to form quantum tech ‘powerhouse’

Quantum computing leaders merge to form quantum tech ‘powerhouse’

Business news |
Honeywell quantum technology spin-off Honeywell Quantum Solutions (HQS) and quantum computing company Cambridge Quantum Computing (CQC) have announced that they will combine to form the world's largest, most advanced quantum business.
By Rich Pell

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The combination, say the companies, will form the largest, most advanced standalone quantum computing company in the world, setting the pace for what is projected to become a $1 trillion quantum computing industry over the next three decades. The new company will offer what is claimed to be the world’s highest performing quantum computer and a full suite of quantum software, including the first and “most advanced” quantum operating system.

These technologies, say the companies, will support customer needs for improved computation in diverse areas including cybersecurity, drug discovery and delivery, material science, finance, and optimization across all major industrial markets. The company will also focus on the advancement of natural language processing to fully leverage the possibilities of quantum artificial intelligence.

“Since we first announced Honeywell’s quantum business in 2018,” says Honeywell Chairman and Chief Executive Officer Darius Adamczyk, who will serve as chairman of the new company, “we have heard from many investors who have been eager to invest directly in our leading technologies at the forefront of this exciting and dynamic industry – now, they will be able to do so. The new company will provide the best avenue for us to onboard new, diverse sources of capital at scale that will help drive rapid growth.”

Honeywell’s trapped ion-based quantum computing hardware recently achieved a quantum volume of 512 – the highest measured on a commercial quantum computer to date, with further advances in progress. Meanwhile, CQC is a global leader in software, cybersecurity, and algorithms that help optimize quantum computing hardware. CQC’s software business will remain hardware agnostic and will continue to be fully compatible with all global quantum hardware providers. Honeywell has been an investor in and commercial partner with CQC since 2019.

CQC CEO and founder Ilyas Khan, who will lead the new company, says, “Joining together into an exciting newly combined enterprise, HQS and CQC will become a global powerhouse that will develop and commercialize quantum solutions that address some of humanity’s greatest challenges, while driving the development of what will become a $1 trillion industry. I am excited to lead a company that has the best people and technologies in the quantum computing industry and the best and boldest clients. Together we will lead the industry as it grows and matures, and create tangible, credible, provable and science-led advances.”

Honeywell says quantum computing will remain a key breakthrough initiative. After the transaction is complete, it will own a majority stake in the new company, with commensurate governance rights. In addition, it says it will invest between $270 million and $300 million in the new company and will have a long-term agreement to help manufacture the critical ion traps needed to power the quantum hardware. Honeywell’s businesses will continue to serve as a proving ground for the new company’s quantum offerings.

The combination is expected to be complete in the third quarter of 2021, subject to regulatory approvals and customary closing conditions. The new company’s name will be announced at a future date.

Honeywell Quantum Solutions
Cambridge Quantum Computing

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