Quantum computing and AI: on the brink of disruption or a distant future?
Uncovering the Challenges and Potential Near-Term Applications.
Hi, Deepsense community! Welcome to the third issue of Deepsense Insights, the newsletter that brings you the latest on science and technology investment opportunities.
In this issue, we investigate quantum applications in artificial intelligence (AI), exploring the quantum challenge(s), potential applications of quantum artificial intelligence, and the road ahead. Let's take a deep dive into the topic! 🏊♂️
The surging growth 📈
Quantum computing and AI are currently experiencing unprecedented growth, as companies worldwide strive to harness the combined power of these domains. Tech giants like IBM, Google, Amazon, and Microsoft have made substantial investments in developing quantum computing platforms, with some prototypes already available in the cloud.
There is a prevailing belief that any field heavily reliant on classical computers can expect at least marginal impacts from quantum computation, and artificial intelligence is certainly no exception. Progress in quantum computing paves the way for the development of AI algorithms that surpass classical methods, leading to advancements in pattern recognition, data analysis, and decision-making.
However, before fully leveraging the potential of quantum applications in AI, numerous challenges must be overcome.
The quantum challenge 🔑
Quantum computing encompasses various hardware architectures, each with unique advantages and disadvantages in creating and manipulating quantum bits (qubits). Trapped ion-based quantum computers offer high fidelity for accurate qubit operations, while superconducting qubits enable faster gate times for quicker computations. The choice of architecture depends on specific task requirements and trade-offs between factors like, for example, fidelity and gate speed. Ongoing research aims to optimize performance and address challenges in quantum computing. However, based on current projections, substantial advantages over classical computation are unlikely within the next five years using the available architectures.
Another significant hurdle lies in scaling these technologies to chips with a sufficient number of qubits to compete with classical architectures. GPUs, ASICS, cluster computers, and high-performance computing systems have all undergone decades of development to achieve their current level of sophistication. In comparison, quantum computing is still in its early stages.
In addition to advancements in quantum hardware, a deeper understanding of the real costs associated with quantum computation is crucial to finding useful applications. This includes considerations such as energy consumption and computational overheads for implementing quantum error correction using classical CPUs.
Where can quantum enhance AI models? 💡
Let's delve deeper into the potential applications of quantum artificial intelligence, particularly in domains that are already benefiting from classical AI, and explore how quantum computing can further advance these verticals:
Quantum Chemistry and Drug Discovery: Quantum computers offer efficient simulation of quantum mechanics, enabling faster discovery of new drugs and personalized medicine. Companies like Quantica Computacao (India), Entos (US), Molecular Quantum Solutions (Denmark), Menten AI (US), and QunaSys (Japan) are actively developing AI-driven quantum platforms and tools to accelerate drug discovery and enhance pharmaceutical research.
Financial Services: Quantum computing has the potential to improve trading strategies, derivative pricing, risk analysis, and portfolio optimization by solving complex optimization problems and enhancing data analysis capabilities. Abaqus (Canada) is building a research platform specifically designed to enable financial organizations to explore, experiment, and deploy quantum computing for risk management, optimization, and pricing.
Even beyond these verticals, quantum artificial intelligence could address broader horizontal types of problems:
Machine Learning: Quantum machine learning algorithms offer faster data processing, pattern recognition, and optimization tasks, which can revolutionize applications across various industries. Quantum companies like QunaSys (Japan) are actively developing applications focused on quantum machine learning to unlock the potential of this transformative technology.
Optimization: Quantum computing can address large-scale optimization problems, ranging from logistics planning to resource allocation and scheduling.
The road ahead 🌍
While quantum computing is making significant strides, it is challenging to predict when it will reach sufficient maturity for fruitful deployment across industries and application domains. It's important to note that quantum computing is still in its early stages, and again, we must compare its progress with the 70-year trajectory of Moore's law that has driven classical computing. Experts anticipate that useful applications may emerge within the next five years, while more conservative estimates project a timeline closer to a decade.
Overall, the convergence of quantum computing and AI holds immense potential. From accelerating scientific discoveries to optimizing complex systems and transforming data analysis, this fusion of technologies has the power to reshape the landscape of technology and drive innovation across multiple industries.
As we navigate the Quantum x AI frontier, it is essential to understand the potential consequences and prepare for a quantum future. Developing frameworks to regulate these technologies and gaining a clear understanding of their use cases in businesses will be vital. Additionally, the risks associated with quantum computers breaking current cryptographic schemes must be mitigated through the development of new, secure schemes.
⛹️ Players in Quantum x AI
SandboxAQ 🇺🇸
Combines quantum sensors with advanced AI to unlock previously unobtainable insights in navigation, medical devices, imaging, and other critical areas.
Founded: 2021
Disclosed amount raised to date: $500MM
Last disclosed round: Series D, March 2022
Disclosed investors: Amadeus Capital Partners, Barton Technology Ventures, Breyer Capital, Elaia Partners, First Light Capital Group, Guggenheim Investments, Paladin Capital Group, Parkway Venture Capital, Section 32, Time Ventures, T. Rowe Price, and several Angel Investors.
Quantinuum 🇺🇸
Develops quantum computing applications catering to the automotive, pharmaceuticals, energy, chemicals, finance, logistics, life sciences, biotech, manufacturing, and defense sectors.
Founded: 2015
Disclosed amount raised to date: $325MM
Last disclosed round: Early Stage VC, February 2022
Disclosed investors: 2xN, Cambridge Quantum Computing, Honeywell, IBM Ventures, and Serendipity Capital
Terra Quantum 🇨🇭
Provides Quantum as a Service in the areas of algorithms, computing and security.
Founded: 2019
Disclosed amount raised to date: $90MM
Last disclosed round: Early Stage VC, February 2023
Disclosed investors: Anders Indset (Angel), Lakestar, and Investcorp
Zapata 🇺🇸
Builds AI solutions and applications for enterprises' most computationally complex problems.
Founded: 2017
Disclosed amount raised to date: $67.4MM
Last disclosed round: Series B, November 2020
Disclosed investors: Ahren Innovation Capital, Alumni Ventures, BASF Venture Capital, Bosch Ventures, Comcast Ventures, Founders Fund, Honeywell Ventures, Itochu, Merck Global Health Innovation Fund, Pillar VC, Pitango Venture Capital, Plug and Play, Prelude Ventures, Propagator Ventures, Raptor Gorup, The CXO Fund, The Engine, Tjuvholmen Ventures, Tupancy Capital, WorldQuant Ventures, and several Angel Investors
1QBit 🇨🇦
Identifies intractable industry problems and builds the software necessary to harness the best quantum hardware technologies to solve them.
Founded: 2012
Disclosed amount raised to date: $65MM
Last disclosed round: Later Stage VC, January 2019
Disclosed investors: Accenture, Agentis Captial, Allianz Global Investors, Break Off Capital, CME Ventures, Fluxus Ventures, Fujitsu, Green Sands Equity, Handshake Ventures, KittyHawk Ventures, NatWest Group, SCB 10x, Siam Commercial Bank, and several Angel Investors
Entos 🇺🇸
Develops an AI and quantum mechanics-driven drug discovery platform.
Founded: 2017
Disclosed amount raised to date: $53MM
Last disclosed round: Series A, July 2021
Disclosed investors: Catalio Capital Management, Coatue Management, FreeFlow, Nexus Venture Partners, OrbiMed, Sequoia Capital, and Tao Capital
QC Ware 🇺🇸
Develops enterprise software designed to perform quantum computing.
Founded: 2014
Disclosed amount raised to date: $41.4MM
Last disclosed round: Series B, September 2021
Disclosed investors: Airbus Ventures, BMW Group, Bpifrance, Citigroup, Covestro, Goldman Sachs Growth Equity, Koch Disruptive Technologies, Pegasus Tech Ventures, Plug and Play, and Samsung Venture Investment.
Horizon Quantum Computing 🇸🇬
Develops computer programming tools designed to bridge the gap between quantum computers and conventional software development
Founded: 2018
Disclosed amount raised to date: $21.3MM
Last disclosed round: Series A, March 2023
Disclosed investors: Abies Ventures, DCVC, Expeditions Fund, Grupo Posadas, Pappas Capital, Peak XV Partners, Posa CV, Qubit Protocol, Sequoia Capital Southeast Asia, SGInnovate, Summer Capital, and Tencent Holdings
Algorithmiq 🇫🇮
Develops advanced quantum algorithms to solve complex problems in life sciences.
Founded: 2020
Disclosed amount raised to date: $19.3MM
Last disclosed round: Series A, June 2023
Disclosed investors: Inventure, K5 Global, Presidio Ventures, Tesi, Thames Trust, Tiger Global Management, and several Angel Investors
QunaSys 🇯🇵
Develops applications using quantum computing with a focus on quantum chemistry and quantum machine learning.
Founded: 2018
Disclosed amount raised to date: $12.8MM
Last disclosed round: Series B, March 2022
Disclosed investors: ANRI, Eneos Innovation Partners, Fujitsu Ventures, Global Brain, HPC Systems, JIC Venture Growth Investments, Mitsubishi UFJ Capital, Shinsei Corporate Investment, and Zeon Japan
Menten AI 🇺🇸
Develops peptide and protein therapeutics using machine learning and quantum computing.
Founded: 2018
Disclosed amount raised to date: $4MM
Last disclosed round: Seed Extension, November 2021
Disclosed investors: Creative Destruction Lab, Founders X Ventures, Khosla Ventures, Quain Investments, Social Impact Capital, Society Venture Investments, Uncork Capital, and Y Combinator
Phasecraft 🇬🇧
Develops quantum computing software designed to discover new catalysts and optimize key industrial processes, enabling clients to investigate novel quantum materials and develop batteries and efficient solar cells.
Founded: 2017
Disclosed amount raised to date: $3.5MM
Last disclosed round: Seed, December 2020
Disclosed investors: AlbionVC, Episode 1 Ventures, London Co-Investment Fund, Parkwalk Advisors, Phoenix Court, and UCL Technology Fund
Kipu Quantum 🇩🇪
Creates application-specific quantum computing solutions for immediate industrial use.
Founded: 2021
Disclosed amount raised to date: $3.3MM
Last disclosed round: Pre-Seed, September 2022
Disclosed investors: Entrada Ventures, First Momentum Ventures, and Quantonation
Entropica Labs 🇸🇬
Builds models, algorithms and techniques for optimisation with quantum computers.
Founded: 2018
Disclosed amount raised to date: $1.8MM
Last disclosed round: Seed, May 2020
Disclosed investors: Creative Destruction Lab, Elev8.vc, Entrepreneur First, Lim Teck Lee Group, SGInnovate, TIS INTEC Group, Wavemaker Partners, and several Angel Investors
BEIT 🇵🇱
Provides forward-looking, hardware-agnostic quantum algorithms followed by hardware design recommendations intended to accelerate the benefits of business-relevant quantum computing.
Founded: 2016
Disclosed amount raised to date: $1.4MM
Last disclosed round: Seed, October 2019
Disclosed investors: Bloomberg Beta, Creative Destruction Lab, DCVC, Firebolt Ventures, Kindred Capital, Manta Ray Ventures, S28 Capital, and several Angel Investors
Molecular Quantum Solutions 🇩🇰
Provides computational tools to accelerate research & development efforts by the pharma, biotech and chemical industry.
Founded: 2019
Disclosed amount raised to date: $650K
Last disclosed round: Pre-Seed, June 2023
Disclosed investors: InnoFounder, Rockstart, Scale Capital, and Stokbro Invest
Quantagonia 🇩🇪
Provides businesses with an easy on-ramp to quantum and hybrid computing, delivering value today while helping to generate first-mover advantages for users as quantum computers continue to develop.
Founded: 2021
Disclosed amount raised to date: Undisclosed
Last disclosed round: Pre-Seed, February 2022
Disclosed investors: FTTF and Voima Ventures
Abaqus 🇨🇦
Builds a research platform to enable financial organisations to explore, experiment and deploy quantum computing for risk management, optimization and pricing.
Founded: 2021
Disclosed amount raised to date: Undisclosed
Last disclosed round: N/A
Disclosed investors: N/A
Quantica Computacao 🇮🇳
Works on quantum machine learning tools for investment banking and stock exchange and Quantum Simulation Algorithms for pharmaceutical companies to develop new and effective drugs.
Founded: 2017
Disclosed amount raised to date: Undisclosed
Last disclosed round: N/A
Disclosed investors: N/A
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That's a wrap for this edition of Deepsense Insights. Keep an eye out for our next issue, where we'll uncover even more groundbreaking technologies that are reshaping our future. 🌌