NVIDIA is going to invest in a quantum computing company

NVIDIA ventures into quantum computing: in talks to invest in PsiQuantum, betting on the next wave of technology.

According to a report by technology media Information, NVIDIA is in advanced investment negotiations with quantum computing startup PsiQuantum. Four people involved in the deal revealed that the negotiations come as PsiQuantum is raising at least $750 million in a funding round.

Additionally, previous reports indicated that PsiQuantum is seeking to raise funds at a pre-money valuation of $6 billion, with BlackRock expected to lead this funding round. NVIDIA's involvement had not been disclosed earlier.

This move sharply contrasts with NVIDIA CEO Jensen Huang's cautious remarks earlier this year regarding the prospects of quantum computing. In January, Huang stated that quantum computing might take 20 years to become a practical technology, but he has since clearly adjusted his stance.

NVIDIA's Quantum Computing Strategy

Since Huang's conservative comments on quantum computing in January, NVIDIA has significantly changed its strategy.

In March of this year, the company held its first "Quantum Day" event at its annual developer conference and announced the establishment of a new quantum research center in Boston, aimed at helping quantum computing companies leverage NVIDIA hardware to enhance their work.

PsiQuantum is one of the dozen quantum startups highlighted by Huang during his fireside chat at the NVIDIA conference.

Notably, earlier this year, NVIDIA also invested in SandboxAQ, which raised over $450 million to develop quantum computing software algorithms.

Quantum Computing: The Next Wave of Technological Revolution?

Currently, all computing—whether storing photos, streaming videos, or training artificial intelligence models—runs on computers that process information using small data units called bits.

Quantum computing companies aim to solve problems that traditional computers would take thousands of years to process by using quantum bits (qubits) to encode information.

Over the past year, tech giants including Google and Microsoft have announced breakthroughs from their research teams in quantum computing. A Google executive stated in an interview with Reuters that practical applications running on quantum computers could be realized within the next five years.

Founded in 2016 in Palo Alto, PsiQuantum is one of the few startups racing to build quantum computers, with the goal of developing quantum computers that can surpass traditional computers in complex tasks, such as simulating molecular interactions to accelerate drug discovery.

Public information shows that in 2021, PsiQuantum raised $450 million in a funding round, bringing its valuation to over $3 billion. The company builds qubits using a photonic approach, which involves constructing qubits from light particles and relying on traditional semiconductor manufacturing, packaging, and cryogenic cooling technologies to realize its hardware.

Although PsiQuantum is one of the best-funded startups in the industry, the company has yet to publicly demonstrate a functioning quantum system One of the biggest challenges in building quantum computing systems is the difficulty in controlling qubits. Many in the industry, including PsiQuantum, believe that quantum computers will only be useful when millions of physical qubits can work together without failure