Quantum Entropy, Rising Hacks, and a Hardware Shift Now Forcing Security Overhauls

Welcome to the latest edition of "Quantum Leap" where The Fly decodes news and activity in the quantum computing space.DATA TRANSMISSION:Arqit Quantumand Sparkle demonstrated quantum-resilient data transmission across Sparkle's optical network in Greece. The proof of concept, implemented over Sparkle metropolitan optical ring in Athens, shows how Arqit's encryption technology can be embedded directly into the optical transport layer, protecting high-capacity networks against future quantum threats without impacting performance. Sparkle validated that sensitive data can be secured at the physical network layer without compromising performance. Following the deployment of Arqit's technology, end-to-end encryption was applied to multi-100G optical links. This demonstrated that quantum-resistant protection can be delivered at the speed of light.GOVERNMENT BUSINESS UNIT:D-Wave Quantumannounced that it has formed a new business unit dedicated to driving the adoption of its quantum computing products and services with the U.S. government. In support of the company's government business, D-Wave recently announced that its Advantage2 quantum computer is now operational at the Alabama headquarters of Davidson Technologies, a technology company supporting U.S. Department of War and commercial aerospace customers. The system is expected to address mission-critical U.S. government problems and eventually run sensitive applications. "D-Wave is uniquely positioned to address many of the challenges facing our government," said Jack Sears, VP of U.S. government solutions. "With D-Wave's quantum technology capable of solving real-world problems today and a quantum computing system operational in Alabama that is expected to eventually handle sensitive applications, now is the time to aggressively push quantum adoption in service of national security and defense."INVESTMENT PARTNERSHIP:IonQannounced an investment partnership with the Centre for Commercialization of Regenerative Medicine, or CCRM, to accelerate therapeutic development using hybrid quantum and quantum-AI technologies. The partnership includes an investment commitment into CCRM's new quantum-biotech initiatives and establishes IonQ as the technology partner across CCRM's global network of therapy hubs. This collaboration will initially focus on areas including bioprocess optimization, disease-modeling workflows, and quantum enhanced simulation to support the design and manufacturing of advanced therapies.STRATEGIC ROADMAP:Sealsqannounced that it organized a gathering in Provence to outline its vision for 2026/2030. Year-to-date growth has been supported primarily by renewed demand for Sealsq's core products and the consolidation of two months of revenue from IC'Alps, following its acquisition on August 4. Sealsq also presented its strategic roadmap for 2026. With more than EUR 450M in cash reserves, the company said it is positioned to accelerate its expansion through potential targeted acquisitions, planned new product lines, and continued innovation. According to the company, these initiatives support Sealsq's long-term 2030 goal: the development of its own secure sovereign quantum computer.ANALYST COMMENTARY:Evercore ISI initiated coverage of D-Wave Quantum with an Outperform rating and $44 price target. The firm, which views D-Wave as "a leading play" as the computing industry shifts to a quantum computing era, highlights it as the first quantum company with commercial revenues, a full stack ecosystem and one that is well-funded.UBS hosted a gate quantum panel with IonQ, Rigetti Computingand Quantum Computing. The firm noted the following key themes:Engineering hurdles remain; financing is often the bottleneck.Commercialization likely four to five years away; path unclear.Divergent views on networking, memory, and synergy with classical computing.Post-quantum security assumptions may shift as QPU capabilities evolve.