Infleqtion Secures $2M DARPA Contract
Welcome to the latest edition of "Quantum Leap" where The Fly decodes news and activity in the quantum computing space.DARPA CONTRACT:Infleqtionsecured a $2M contract from the U.S. Defense Advanced Research Projects Agency through the Heterogeneous Architectures for Quantum program. The award supports the development of Multistaq, a next-generation platform designed for heterogeneous quantum systems composed of multiple qubit modalities. These heterogeneous quantum systems have the potential to accelerate scientific discovery, enhance national security decision-making, and support the development of more efficient energy, materials, and infrastructure solutions. Infleqtion was selected to contribute to Technical Area 1, which focuses on breakthrough quantum circuit compilers that maximize the capabilities of heterogeneous qubit platforms. Multistaq builds on the principles behind the company's Superstaq multimodal compiler, implementing cross-modality and cross-layer optimization techniques to support next-generation quantum architectures.SCALEUP PARTNER:Arqit Quantumhas been selected to join the Tomorrow Street portfolio as a scaleup partner. Arqit is the first quantum security company to join the portfolio. This milestone follows Arqit's participation in Tomorrow Street's 2025 Scaleup X program, where it engaged with technology stakeholders and demonstrated the relevance of its solutions in addressing emerging cybersecurity challenges across Tomorrow Street's ecosystem.UNIVERSITY OF ILLINOIS PARTNERSHIP EXPANSION:IBMand the Grainger College of Engineering at the University of Illinois Urbana-Champaign announced an expansion of the IBM-Illinois Discovery Accelerator Institute. This includes deploying quantum-centric supercomputing to Illinois through the integration of U. of I.'s National Center for Supercomputing Applications, or NCSA, Delta and DeltaAI supercomputers with IBM quantum computers. "I'm pleased to see the IBM-Illinois Discovery Accelerator Institute building on years of progress and partnership with U. of I. as Illinois innovators pursue critical discoveries in quantum computing and AI," said Governor JB Pritzker. "Illinois' world-class research institutions, unique industry collaborations, and unmatched research talent position our state at the forefront of global progress, and I look forward to seeing the countless advancements that this expansion will bring." Quantum-centric supercomputing represents IBM's vision for the future of computation, where quantum processors work alongside high-performance classical systems powered by CPUs and GPUs to solve complex problems in science and industry. As part of the Institute's expansion, IBM and U. of I. researchers will collaborate on the development of quantum-centric workflow management tools to integrate the most powerful IBM quantum computers on the cloud with NCSA Delta and DeltaAI supercomputers, creating an environment for ongoing quantum-centric supercomputing-powered research across academia, industry, and government in Illinois. Institute members will explore how quantum-centric supercomputing architectures and novel algorithms can integrate the power of IBM quantum computers and NCSA HPC to solve classically hard problems and pursue near-term quantum advantage, as well as solutions for fundamental problems in chemistry, condensed-matter physics, and materials science. The Institute will also launch Algorithms-to-Silicon-to-Systems, or AS2, a new research area to accelerate the integration and implementation of algorithms into silicon for specialized systems. "IBM is thrilled to help provide quantum-centric supercomputing to Illinois researchers, alongside an expansion of the IBM-Illinois Discovery Accelerator Institute's efforts in AI for systems design. As the brilliant minds within the Institute discover and test new algorithms, they will drive groundbreaking research to power the applications made possible by AI and quantum computing," said Jay Gambetta, Director of IBM Research and IBM Fellow.ANALYST COMMENTARY:Northland told investors in a research note that quantum computing's market potential could be between $100B and $250B. The analyst believes technology execution risk is "far less on an industry level." For that reason, the firm argues that investing across all quantum computing companies diversifies away the risk and assures participating in the "asymmetrically positively skewed projected returns." Among the five quantum names on which the analyst launched coverage, it has Outperform ratings on IonQ, Quantum Computingand Xanadu Quantumand assigns Market Perform ratings to D-Wave Quantumand Rigetti Computing.
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Infleqtion Expands Quantum Operations in the UK
- Quantum Innovation Centre Launch: Infleqtion is set to open a new Quantum Innovation Centre in Oxford later this year, aimed at supporting the company's growth in the UK while attracting top physicists and engineers, thereby enhancing its competitive edge in the global quantum technology landscape.
- Quantum Computer Delivery: Infleqtion has delivered the UK's first operational 100-physical-qubit quantum computer to the National Quantum Computing Centre, becoming the only company to meet the government's 2025 target, which not only boosts the company's reputation but also lays a foundation for enhancing national quantum capabilities.
- Successful Naval Trials: The company successfully deployed its Tiqker™ optical atomic clock aboard the MOD's Excalibur autonomous submarine, marking the first quantum optical clock to operate underwater, showcasing the reliability and innovation of its technology, which is expected to further advance quantum navigation technology.
- Government Investment Support: With the UK government increasing investment in quantum technology through its National Quantum Strategy, Infleqtion's innovation centre will align with the government's ProQure procurement initiative, ensuring the company maintains a leading position in the future quantum technology market while promoting economic and societal benefits.
U.S. Government Invests in Quantum Computing Firms
- Government Investment Plan: The U.S. government is set to invest up to $100 million each in D-Wave Quantum, Rigetti Computing, and Infleqtion as part of a $2 billion infusion into the quantum computing sector, aiming to accelerate the commercialization of quantum technologies, although these investments are still considered highly speculative.
- D-Wave Quantum Development: D-Wave Quantum focuses on quantum annealing technology and has begun selling its Advantage II systems to commercial clients, planning to use government funding to expedite the development of a 10,000-qubit gate-model system, aiming for breakthroughs in optimization problems to enhance its market competitiveness.
- Rigetti Computing Challenges: While Rigetti Computing's quantum systems are estimated to be 1,000 times faster than traditional technologies, the company has struggled with accuracy issues and has not yet reached Stage B of the U.S. Defense Advanced Research Projects Agency's Quantum Benchmarking Initiative; government investment will be directed towards addressing its technical challenges in superconducting quantum computing.
- Infleqtion's Market Positioning: Infleqtion went public through a SPAC merger, focusing on quantum sensing and precision timing tools, securing U.S. and U.K. government clients, and plans to utilize government funding to continue developing its neutral-atom quantum systems, aiming for a two-gate fidelity of 99.9% in 2024.
U.S. Government Invests in Quantum Computing Firms
- Government Investment Plan: The U.S. government is set to invest up to $100 million each in D-Wave Quantum, Rigetti Computing, and Infleqtion, aiming to accelerate advancements in quantum computing technology and enhance market competitiveness.
- D-Wave Quantum's Strategy: D-Wave is advancing both quantum annealing and traditional gate-based quantum computing systems, leveraging government funding to expedite the development of a 10,000-qubit gate model, which is expected to strengthen its market position in solving optimization problems.
- Rigetti's Accuracy Challenges: While Rigetti's quantum systems are estimated to be 1,000 times faster than traditional technologies, accuracy issues remain unresolved, and the company has not yet progressed to Stage B of the U.S. Defense Department's Quantum Benchmarking Initiative; government investment will be directed towards addressing these technical challenges.
- Infleqtion's Market Positioning: Infleqtion focuses on quantum sensing and precision timing tools, securing government contracts, and its neutral atom technology allows its quantum computers to operate at room temperature; government funding will support the continued development of this innovative technology.
Infleqtion's Commercial Progress in Quantum Technology
- Commercialization of Quantum Sensors: Infleqtion's quantum sensors are already shipping to customers, utilizing atomic properties for high-precision measurements, generating revenue in the quantum sensing space despite the immaturity of quantum computers, showcasing the market potential of its technology.
- Significant Technical Advantages: Infleqtion employs Nobel Prize-winning techniques involving ultracold atoms and laser cooling, using neutral atoms as qubits, which offers manufacturing consistency advantages and avoids the challenges associated with superconducting qubits, enhancing product scalability.
- Government Funding Support: In 2026, Infleqtion received $3.9 million from the U.S. Department of Energy's ARPA-E for applying quantum computing to advanced energy issues, while establishing partnerships with multiple national laboratories, further solidifying its position in the quantum technology sector.
- Market Outlook and Risks: Although Infleqtion generated only $32.5 million in revenue in 2025 and faces cash burn and dilution risks, its existing business in quantum sensing and timing provides a stable revenue source, and the potential for significant growth exists as quantum computing technology matures.
Infleqtion Advances in Quantum Technology Commercialization
- Government Contract Revenue: Infleqtion generates revenue through defense and government contracts, indicating that its quantum sensors and timing technologies have gained real market applications, enhancing the company's market position in quantum technology.
- Technical Advantages: The company uses neutral atoms as qubits, avoiding manufacturing variation issues associated with superconducting qubits, with its Sqale quantum computer targeting 100 logical qubits by 2028 and 1,000 by 2030, demonstrating scalability and stability of its technology.
- Funding Support: Infleqtion received $3.9 million in funding from the U.S. Department of Energy to apply quantum computing to advanced energy problems, further solidifying its leadership position in the quantum technology sector.
- International Space Station Application: The company's quantum hardware is operational aboard the International Space Station, supporting NASA projects, showcasing the practical application potential of its technology and its contribution to national interests.
U.S. Government's Major Investment in Quantum Computing
- Government Funding Injection: The U.S. Department of Commerce has signed letters of intent to provide approximately $2.01 billion to nine quantum companies, with the government taking minority, non-controlling equity stakes, indicating strong support for the quantum computing sector and potentially accelerating technological advancements.
- Significant Gains for IBM: International Business Machines (IBM) is set to receive $1 billion to build a quantum chip foundry in Albany, New York, matching that with another billion of its own, bringing the total project cost to nearly $2 billion, reflecting its long-term commitment to quantum computing.
- Surge in Smaller Quantum Firms: Smaller quantum companies like D-Wave Quantum, Rigetti Computing, and Infleqtion saw stock prices soar over 30% following the announcement, collectively adding nearly $5 billion in market value, despite their weak financial performance, highlighting the speculative nature of the quantum technology market.
- Risks and Opportunities: While the government's funding commitment could bring long-term growth potential to the quantum computing industry, significant risks remain, and investors should tread carefully, especially since these funding agreements are still in the proposal stage.
Infleqtion Expands Quantum Operations in the UK
- Quantum Innovation Centre Launch: Infleqtion is set to open a new Quantum Innovation Centre in Oxford later this year, aimed at supporting the company's growth in the UK while attracting top physicists and engineers, thereby enhancing its competitive edge in the global quantum technology landscape.
- Quantum Computer Delivery: Infleqtion has delivered the UK's first operational 100-physical-qubit quantum computer to the National Quantum Computing Centre, becoming the only company to meet the government's 2025 target, which not only boosts the company's reputation but also lays a foundation for enhancing national quantum capabilities.
- Successful Naval Trials: The company successfully deployed its Tiqker™ optical atomic clock aboard the MOD's Excalibur autonomous submarine, marking the first quantum optical clock to operate underwater, showcasing the reliability and innovation of its technology, which is expected to further advance quantum navigation technology.
- Government Investment Support: With the UK government increasing investment in quantum technology through its National Quantum Strategy, Infleqtion's innovation centre will align with the government's ProQure procurement initiative, ensuring the company maintains a leading position in the future quantum technology market while promoting economic and societal benefits.
U.S. Government Invests in Quantum Computing Firms
- Government Investment Plan: The U.S. government is set to invest up to $100 million each in D-Wave Quantum, Rigetti Computing, and Infleqtion as part of a $2 billion infusion into the quantum computing sector, aiming to accelerate the commercialization of quantum technologies, although these investments are still considered highly speculative.
- D-Wave Quantum Development: D-Wave Quantum focuses on quantum annealing technology and has begun selling its Advantage II systems to commercial clients, planning to use government funding to expedite the development of a 10,000-qubit gate-model system, aiming for breakthroughs in optimization problems to enhance its market competitiveness.
- Rigetti Computing Challenges: While Rigetti Computing's quantum systems are estimated to be 1,000 times faster than traditional technologies, the company has struggled with accuracy issues and has not yet reached Stage B of the U.S. Defense Advanced Research Projects Agency's Quantum Benchmarking Initiative; government investment will be directed towards addressing its technical challenges in superconducting quantum computing.
- Infleqtion's Market Positioning: Infleqtion went public through a SPAC merger, focusing on quantum sensing and precision timing tools, securing U.S. and U.K. government clients, and plans to utilize government funding to continue developing its neutral-atom quantum systems, aiming for a two-gate fidelity of 99.9% in 2024.
U.S. Government Invests in Quantum Computing Firms
- Government Investment Plan: The U.S. government is set to invest up to $100 million each in D-Wave Quantum, Rigetti Computing, and Infleqtion, aiming to accelerate advancements in quantum computing technology and enhance market competitiveness.
- D-Wave Quantum's Strategy: D-Wave is advancing both quantum annealing and traditional gate-based quantum computing systems, leveraging government funding to expedite the development of a 10,000-qubit gate model, which is expected to strengthen its market position in solving optimization problems.
- Rigetti's Accuracy Challenges: While Rigetti's quantum systems are estimated to be 1,000 times faster than traditional technologies, accuracy issues remain unresolved, and the company has not yet progressed to Stage B of the U.S. Defense Department's Quantum Benchmarking Initiative; government investment will be directed towards addressing these technical challenges.
- Infleqtion's Market Positioning: Infleqtion focuses on quantum sensing and precision timing tools, securing government contracts, and its neutral atom technology allows its quantum computers to operate at room temperature; government funding will support the continued development of this innovative technology.
Infleqtion's Commercial Progress in Quantum Technology
- Commercialization of Quantum Sensors: Infleqtion's quantum sensors are already shipping to customers, utilizing atomic properties for high-precision measurements, generating revenue in the quantum sensing space despite the immaturity of quantum computers, showcasing the market potential of its technology.
- Significant Technical Advantages: Infleqtion employs Nobel Prize-winning techniques involving ultracold atoms and laser cooling, using neutral atoms as qubits, which offers manufacturing consistency advantages and avoids the challenges associated with superconducting qubits, enhancing product scalability.
- Government Funding Support: In 2026, Infleqtion received $3.9 million from the U.S. Department of Energy's ARPA-E for applying quantum computing to advanced energy issues, while establishing partnerships with multiple national laboratories, further solidifying its position in the quantum technology sector.
- Market Outlook and Risks: Although Infleqtion generated only $32.5 million in revenue in 2025 and faces cash burn and dilution risks, its existing business in quantum sensing and timing provides a stable revenue source, and the potential for significant growth exists as quantum computing technology matures.
Infleqtion Advances in Quantum Technology Commercialization
- Government Contract Revenue: Infleqtion generates revenue through defense and government contracts, indicating that its quantum sensors and timing technologies have gained real market applications, enhancing the company's market position in quantum technology.
- Technical Advantages: The company uses neutral atoms as qubits, avoiding manufacturing variation issues associated with superconducting qubits, with its Sqale quantum computer targeting 100 logical qubits by 2028 and 1,000 by 2030, demonstrating scalability and stability of its technology.
- Funding Support: Infleqtion received $3.9 million in funding from the U.S. Department of Energy to apply quantum computing to advanced energy problems, further solidifying its leadership position in the quantum technology sector.
- International Space Station Application: The company's quantum hardware is operational aboard the International Space Station, supporting NASA projects, showcasing the practical application potential of its technology and its contribution to national interests.
U.S. Government's Major Investment in Quantum Computing
- Government Funding Injection: The U.S. Department of Commerce has signed letters of intent to provide approximately $2.01 billion to nine quantum companies, with the government taking minority, non-controlling equity stakes, indicating strong support for the quantum computing sector and potentially accelerating technological advancements.
- Significant Gains for IBM: International Business Machines (IBM) is set to receive $1 billion to build a quantum chip foundry in Albany, New York, matching that with another billion of its own, bringing the total project cost to nearly $2 billion, reflecting its long-term commitment to quantum computing.
- Surge in Smaller Quantum Firms: Smaller quantum companies like D-Wave Quantum, Rigetti Computing, and Infleqtion saw stock prices soar over 30% following the announcement, collectively adding nearly $5 billion in market value, despite their weak financial performance, highlighting the speculative nature of the quantum technology market.
- Risks and Opportunities: While the government's funding commitment could bring long-term growth potential to the quantum computing industry, significant risks remain, and investors should tread carefully, especially since these funding agreements are still in the proposal stage.
