The race for quantum computing dominance is heating up, with tech giants vying to unlock this revolutionary technology’s vast potential. Quantum computing promises to outperform even the most advanced supercomputers, solving complex problems in seconds that would take traditional computers years to solve. As one of the technological leaders, Google (GOOGL) is acting swiftly to stay ahead in this race. Through its Quantum AI business unit, the company has advanced its research and invested in promising startups that are leading the charge. Two notable examples are QuEra Computing and SandboxAQ.
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What Is Google’s Aim?
Boston-based QuEra Computing recently secured over $230 million in funding, with Google and SoftBank Vision Fund (SFTBY) among its key backers. QuEra’s unique neutral-atom quantum technology uses lasers to control uncharged atoms like rubidium, making it easier to scale and reduce error rates than other quantum systems. QuEra’s approach can help Google’s quantum systems by making them easier to scale and reducing errors. This technology also improves accuracy, a major challenge in quantum computing. By working with QuEra, Google can explore new ways to build more powerful quantum computers, speed up its progress, and find the best solutions for error corrections.
Meanwhile, SandboxAQ, a startup spun off from Alphabet, Google’s parent company, raised $300 million in December 2024, achieving a $5.6 billion valuation. SandboxAQ focuses on quantum algorithms and artificial intelligence, aiming to provide quantum solutions for the cybersecurity, finance, and drug discovery industries.
Google’s strategy in investing in these companies is clear: build a robust quantum ecosystem. By supporting innovative startups, Google gains access to cutting-edge technologies and fosters collaborations that drive quantum advancements. In the long term, Google will aspire to incorporate these companies’ quantum tech into its own systems, giving itself a healthy advantage in the quantum race. As the race accelerates, Google’s investments position it as a frontrunner in a technology that will reshape everything we think we know about this planet.
Is GOOGL a Good Buy Right Now?
Turning to Wall Street, Google is considered a Moderate Buy. The average price target for GOOGL stock is $215.85, implying a 16.53% upside potential.
