Nvidia Corporation is reportedly in advanced discussions to make a significant investment in the quantum computing startup, PsiQuantum, according to recent reports. This development indicates a strategic shift for Nvidia, as the company has previously communicated that practical quantum computing might still be decades away.
PsiQuantum is notable for its focus on using standard semiconductor manufacturing methods, in contrast to many competitors that rely on exotic materials for quantum technology. This approach could allow PsiQuantum to develop quantum computers with promising applications in high-performance computing, potentially far surpassing the capabilities of current AI systems that utilize Nvidia’s advanced chips.
The startup is already collaborating with government entities in both the U.S. and Australia, aiming to construct quantum computers in Chicago and Brisbane. Additionally, PsiQuantum is in the process of securing at least $750 million in funding from investors, including BlackRock, which would establish a pre-money valuation of around $6 billion.
This investment aligns with Nvidia’s recent endeavors in quantum computing, including the establishment of a quantum research lab in Boston in collaboration with prestigious institutions such as Harvard and MIT. Nvidia’s upcoming earnings report is anticipated, with estimates suggesting earnings of 89 cents per share on revenue of approximately $43.07 billion.
The stock market’s response to Nvidia remains robust, with shares closing 0.4% higher at $135.40 on Friday. Analysts are optimistic, assigning Nvidia a growth score of 95.02%, indicating strong potential within the tech sector.
This proactive stance towards quantum technology could position Nvidia at the forefront of a field that holds transformative potential for various industries, ensuring that the company remains a key player in the evolution of computational technology.