Nvidia CEO Jensen Huang’s recent comments on the future of quantum computing have sparked significant controversy, drawing strong criticism from D-Wave Quantum’s CEO, Alan Baratz. Huang suggested that practical and widely useful quantum computers could be as far as 15 to 30 years away, a statement that caused a sharp drop in quantum technology stocks, including a 36% decline in D-Wave’s shares.
Alan Baratz has firmly rejected Huang’s statements, emphasizing that D-Wave is already delivering commercial quantum computing solutions today. Baratz highlighted that companies like Mastercard and Japan’s NTT Docomo are actively using D-Wave’s quantum computers for real-world business operations, challenging Huang’s timeline. He stressed that quantum computing is not a distant future technology but one that is already in use for practical applications.
D-Wave’s revenue, however, remains modest. The company’s latest quarterly report showed a 27% decline in revenue, dropping to $1.9 million compared to $2.6 million the previous year. Despite this, Baratz remains confident in the current commercial viability of quantum systems.
The Debate Over Quantum Computing’s Progress
Quantum computing has long been seen as a revolutionary technology with the potential to solve complex problems beyond the capabilities of classical computers. These include tasks like encryption breaking, random number generation, and large-scale simulations. Companies such as Nvidia, Microsoft, IBM, and various startups have been pursuing advancements in this field for decades.
The recent market volatility was partly driven by Google’s announcement of a breakthrough in its quantum computing research. Google reported achieving a 100-qubit chip, marking the second step in its six-phase plan to create a quantum system with 1 million qubits. This development revived investor interest, leading to significant stock surges across the industry in December.
D-Wave’s shares soared by 178% in December, following a 185% jump the previous month. Similarly, Rigetti Computing saw its stock value multiply fivefold in December before experiencing a 45% drop. IonQ also faced a 39% decline, despite a previous rally.
The Difference Between Gate-Based and Annealing Quantum Computing
Baratz acknowledged that some forms of quantum computing might still be decades away, specifically referring to gate-based quantum systems, which are complex and challenging to scale for practical use. However, he explained that D-Wave’s technology focuses on a different approach called quantum annealing, which is already commercially viable.
Annealing quantum computers specialize in solving optimization problems and have shown practical results today, unlike gate-based systems still in the experimental phase. Baratz insisted that Jensen Huang’s comments might apply to gate-based models but are completely inaccurate when considering annealing technology.
D-Wave’s Market Resilience and Nvidia’s AI Surge
Despite the recent stock drop, D-Wave has seen impressive market gains, with its share price up nearly 600% over the past year. This growth has given the company a market valuation of approximately $1.6 billion.
Quantum computing advancements have also been closely tied to the rise of artificial intelligence, a market where Nvidia has excelled due to its dominance in high-performance graphics processing units (GPUs). Nvidia’s market valuation has surged by 168% in the past year, reaching $3.4 trillion, driven by increased demand for its GPUs in AI development.
Baratz concluded by stating that D-Wave’s quantum systems can solve complex problems beyond the capabilities of even the most advanced Nvidia-equipped classical systems. He extended an open invitation to meet with Jensen Huang personally to clarify the capabilities of different quantum computing models and bridge the gap in understanding.
Nvidia has not issued any public comments in response to Baratz’s statements.
