XPOA signs $1.6 billion quantum computing deal with D-Wave

A special purpose acquisition company (SPAC) led by a former Uber executive has agreed to merge with Canadian quantum computing pioneer D-Wave, which values ​​the combined company at up to $1.6 billion (£1.2 billion, €1.4 billion).

Formed by Emil Michael, former chief commercial officer of Uber Technologies, DPCM Capital (XPOA) is a SPAC that uses capital raised from a public equity offering to merge with a private company and take it public.

Based in Burnaby, BC, D-Wave is the world’s first commercial quantum computer provider and the only company to develop both annealed and gated quantum computers. Its commercial clients include Volkswagen, Toyota, Accenture and Lockheed Martin.

Symbol ‘QBTS’

Shares of the newly merged company are expected to trade on the New York Stock Exchange under the symbol “QBTS”. Qubits are a measure of quantum computing power.

An ETA for closing the deal has not been issued.

“We believe this event represents a moment of practical value creation for customers and investors. We are working with our customers to identify high probability applications of quantum value and to translate these problems to work on the computer. quantum and then validate that value,” D-Wave CEO Alan Baratz said in a statement.

“Although quantum computing is complex, its value and benefits are quite simple: finding solutions to problems that could not be solved before, or solving problems faster with more optimal results,” added Emil Michael. , CEO of DPCM Capital.

$150 billion market

“As the only quantum computing company in the world to build both annealed and gated quantum computers, D-Wave will have access to the entire projected $150 billion total addressable market for the quantum computing,” Michael said.

D-Wave will use the $340 million proceeds from the deal to further accelerate its delivery of quantum applications for blue-chip customers and to build on its portfolio of more than 200 U.S. patents granted to it since. the creation of D-Wave in 1999.

Funding of $40 million for the deal has been raised from investment partners including PSP Investments, Goldman Sachs Asset Management, NEC Corporation, Yorkville Advisors and Aegis Group Partners.

Calculation methods

Quantum computing is able to tackle difficult calculations that would take many years to solve by conventional computers.

Both gate model and annealing systems can solve complex mathematical processes used in machine learning and cryptography, while gate model computers are suitable for differential equations, such as those used in quantum chemistry.

Whereas conventional computers use an electrical signal that is on or off – one or zero – quantum computers use the subatomic phenomenon of “superposition” where particles have no clearly defined state, so quantum bits (qubits ) of information are either a , a zero or both. This dramatically speeds up computational speed and can help solve complex real-world problems.

And with the advent of cloud computing, you no longer need heavy and expensive equipment installed on company premises.

What shortage of chips?

Quantum computing is not at the mercy of foreign supply chains or semiconductor chip bottlenecks.

Due to the nature of quantum computing, companies such as D-Wave, IBM, and Google are building their own quantum computers from scratch. Google has built three different quantum chips in the span of two years.


Quantum investment

D-Wave isn’t the only company committed to the quantum computing space that people can invest in. Over the past six months, companies such as Rigetti & Co and IonQ have made their way to North American markets.

Other large companies already offer quantum computing services.

Legacy computing giant IBM offers access to cloud-based quantum computing and application development services. The company’s most powerful computer contains 65 qubits and it is working on a 1000 qubit system by next year.

Microsoft offers remote access to quantum computing through its Azure cloud computing service, meaning quantum processing power is only a network cable away, as does Google with its quantum computing service at the request.

Even industrial controls maker Honeywell — which has been making components for NASA since the 1950s — offers quantum computing services for a variety of industries.

Investors preferring a broader investment approach can consider the $165 million Defiance Quantum ETF which provides exposure to companies at the forefront of cloud and quantum computing, machine learning and other computing technologies transformers.

The fund tracks the BlueStar Quantum Computing and Machine Learning Index, which tracks approximately 71 stocks listed globally.

Further reading:

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