Microsoft launches quantum computing chip + game-related generative AI tools, quantum computing concept stocks rise

Microsoft announced on Wednesday the launch of the company's first quantum computing chip, named Majorana 1.

Microsoft stated that its Majorana 1 chip integrates 8 quantum bits (qubits), which are the fundamental building blocks of quantum computing, on hardware the size of a sticky note. Microsoft envisions that in the future, this chip could eventually accommodate one million qubits. Currently, the chip's capabilities are limited to solving mathematical problems to demonstrate its controllability. However, Microsoft's engineers indicated that its development is mature enough to serve as a foundation for future quantum computers.

Analysts believe that Microsoft's announcement indicates that the company's engineers have found a way to build a system within the particles required for quantum computing, which could potentially be used in data centers and drive advancements in fields such as chemistry and medicine. Some research results related to this chip are referred to by Microsoft as "topoconductor," and were published on Wednesday in the journal Nature.

Jason Zander, Microsoft's executive vice president responsible for advancing the commercialization of quantum computing and other cutting-edge technologies, said,

“Scientists proposed this theory as early as 1937, and it has taken us nearly 100 years to prove it. Now, we can leverage it. Many people speculate that we are decades away from true quantum computing, but we believe it is more likely to be just a few years.”

Breakthroughs in Quantum Computing

Although breakthroughs in quantum computing have been predicted for nearly a decade, several announcements in recent months indicate that this technology is gradually approaching practical application.

Unlike the infrastructure of traditional computers, whether it's an iPhone or a supercomputer in a data center, all computers process information in bits, where each bit is either 0 or 1. However, quantum bits (qubits) represent the probabilistic states of 0 and 1, and in some cases, they can simultaneously exhibit both 0 and 1.

Due to this flexibility, a string of qubits can simultaneously compute multiple possibilities, solving problems that traditional computers cannot handle due to their strict limitation to 0 and 1. For example, Alphabet announced last December that its latest quantum chip solved a problem in 5 minutes, while a traditional computer might take longer than the age of the universe to compute it.

However, Google, Microsoft, and many startups focused on quantum computing face a common challenge—the high error rates of quantum computing.

For instance, the generation of qubits and electronic control must occur at extremely low temperatures and in noise-free environments, as any excess heat or sound waves can lead to errors. During experiments, these quantum particles may "flash" and disappear in less than a second, and correcting these errors is often more difficult than creating the particles themselves

Microsoft's Unique Path: Majorana Quantum Bits

Microsoft has been researching quantum computing since 2004 and has adopted a different approach from most companies, focusing on how to reduce computational errors, particularly by utilizing Majorana quasiparticles, a concept first proposed by Italian physicist Ettore Majorana in the 1930s.

Microsoft believes that Majorana quantum bits are less susceptible to bit flips (i.e., unintentional conversions between 0 and 1) compared to quantum bits generated by other methods, thus providing more stable computational capabilities.

To isolate and control Majorana quasiparticles, Microsoft has assembled a series of indium-arsenide materials atom by atom and connected aluminum nanowires into an H-shaped structure. When this structure is cooled to near absolute zero and precisely controlled by a magnetic field, Majorana quasiparticles form at the four endpoints of the letter "H," generating a quantum bit. This quantum bit emits readable 0s and 1s through microwave signals, and the structure can be redeployed on a chip for large-scale integration.

Still in Early Research Phase but Boosting Quantum Computing Concept Stocks

According to reports, unlike Microsoft's plan to provide its custom AI chip Maia 100 through the Azure public cloud, Microsoft currently does not allow customers to use the Majorana 1 chip. Instead, this chip represents an important step toward achieving the goal of one million quantum bits on a single chip, a target based on long-term physical research.

Moreover, Microsoft has not relied on TSMC or other companies for chip manufacturing but has produced components for Majorana 1 domestically in the United States. This is mainly due to the fact that the chip is still in the small-scale research phase.

Microsoft Executive Vice President Jason Zander stated in a media interview:

“We want to achieve a few hundred quantum bits first before we start discussing commercial viability.”

Meanwhile, Microsoft will collaborate with national laboratories and universities to conduct research using Majorana 1.

Despite the current focus on research, investor interest in quantum computing is significant. After Microsoft released the Majorana 1 chip, IonQ and Rigetti's stock prices jumped approximately 3% and 6%, respectively.

IonQ's stock price has risen 237% in 2024, while Rigetti's stock price soared nearly 1500%. The total revenue for both companies in the third quarter of 2024 was $14.8 million. Additionally, in January of this year, Microsoft published a blog post stating that 2025 is "the year to be ready for quantum computing," further driving up related stocks.

Analysts believe that quantum computing may not become a standalone computing field but rather enhance Microsoft's other businesses, such as artificial intelligence (AI). Microsoft's AI business has an annualized revenue exceeding $13 billion, and Zander stated that quantum computers can generate data for training AI models.

"Now, you can let AI invent new molecules and develop new drugs, which was almost impossible in the past."

Microsoft Releases Muse AI: How to "See, Learn, and Play" Like Humans

In addition to quantum chips, Microsoft also released Muse AI on Wednesday, a model capable of understanding and generating complex game sequences while maintaining consistent physical laws and character behaviors for creating video game scenes. This tool's data comes from Xbox players and their game controllers.

Enabling AI to understand and interact with three-dimensional space like humans has long been considered an unattainable goal in the field of AI. However, Microsoft stated that Muse achieves "practical understanding" by observing seven years of player operation records from the Xbox game "Bleeding Edge," differing from traditional AI models that rely on text or static images, mastering how objects, characters, and environments interact over time in three-dimensional space.

Katja Hofmann, Senior Principal Research Manager at Microsoft Research, stated in a media interview:

"The architecture of the model is agnostic to the game itself; the only requirement is access to a suitable dataset."

Media reports indicate that when designing Muse, Microsoft's research team adopted the most universal data format, namely "human interface"—combining visual data and controller operations to train the AI model. This enables Muse to generate coherent game sequences lasting up to two minutes, which is a significant technical achievement in maintaining physical consistency and character behavior stability in a three-dimensional world.

The system requires only one second of game footage as input to generate complex scenes that adhere to physical laws.

However, the technology still has certain limitations. Hofmann stated,

"The image resolution is fixed at 300×180 pixels. There is a trade-off between model size and speed; our largest and most stable model is also the slowest in inference time."

Netizens: It's not that I don't understand, the world changes too fast

The emergence of Microsoft's quantum chip has led some netizens to lament the rapid development of technology:

People have yet to see the bigger picture—technology far exceeds everything you see and hear in the outside world. General Artificial Intelligence (AGI) will be achieved in 100 days. Super Artificial Intelligence (ASI) will be born in 2 years. In the next 2 to 5 years, the technology and economy in your life will be completely reshaped, and the changes will exceed your imagination. What should you do? Get healthy, learn to create value, improve communication skills, and lead others forward. Take control of your thoughts, emotions, and health, and build deep friendships, family, mission, and partnerships—this is the only truly "autonomous" game of the future

Friends, a crazy transformation is about to arrive.

Some netizens also expressed that although quantum computing is still far from entering human daily life, its influence should not be underestimated, as it will further accelerate the development of AI, and the world in ten years will be completely different.

There are also netizens who are worried about the instability of qubits:

Okay. So what does this mean? We have solved the hardware problem, but if the stability issue of qubits has not been resolved, how can we ensure that the hardware can function properly?

Some netizens are concerned about the security issues of quantum computing:

You haven't detailed this "new topological state of matter," possibly because it belongs to your chip's proprietary technology.

Its implications mean the consumer adoption of quantum chips, so I hope Microsoft can provide some clarification on encryption security issues before the release.

Given that the number of qubits is a key factor in breaking encryption limits... is it now capable of breaking symmetric encryption (like AES or RSA)? If so many qubits fall into the hands of bad actors, it could have far-reaching effects globally.

What exactly is going on? Are you researching this issue? Does Microsoft also plan to lead the way in the field of quantum encryption?

Can you imagine? If in the future all traditional computers need to be equipped with quantum chips to adapt to new encryption standards, what would that mean?