Quantum Computing News: How Defense, IBM, and Wall Street Are Testing Real World Use

Welcome to Monday’s edition on quantum computing. As 2026 moves forward, attention is shifting from lab work to real-world use in defense, cloud systems, and finance. This update covers new U.S. cyber spending plans, IBM’s (IBM) hybrid quantum systems, and the first live quantum platform in New York’s financial hubs.

Let’s begin.

1. Pentagon Cyber Spending Targets Quantum Risk

We begin with the U.S. Department of Defense, which plans to raise its cyber budget to $15.1 billion in 2026. The goal is to protect systems from fast AI-driven attacks and future quantum threats. Defense leaders warn that new tools could cut attack times from weeks to minutes.

As part of this shift, agencies are moving toward post-quantum security that can adapt without full system changes. Ted Carefoot, Chief Executive of Quantum Secure Encryption Corp., said, “Defense and government stakeholders are actively evaluating deployable post quantum controls today, not just long-term narratives.”

Several public firms are linked to this effort, including IonQ Inc. (IONQ), Booz Allen Hamilton (BAH), Palo Alto Networks (PANW), and Alphabet (GOOGL) through Google Cloud. In addition, IonQ said its Skyloom deal supports secure data links for future networks.

2. IBM Pushes Hybrid Quantum Computing

Next, International Business Machines Corp. (IBM) is advancing what it calls quantum-centric supercomputing. The idea is to link CPUs, GPUs, and quantum chips in one shared workflow. Rather than replacing current systems, IBM aims to add quantum power where it fits best.

Researchers working with IBM showed that this mix can speed up key tasks in science and materials work. In one case, hybrid methods ran up to 100 times faster than CPU-only tests. IBM said, “Quantum will be one piece of a paradigm combining every computing tool we have available.”

Partners in this work include Advanced Micro Devices (AMD) and NVIDIA (NVDA), whose GPUs help manage data and reduce noise in quantum results.

3. Google DeepMind Introduces Project Genie World Models

In other news, Google DeepMind, part of Alphabet (GOOGL), launched Project Genie, an early research prototype that lets users build and explore interactive worlds using text and image prompts. The system runs on a new model called Genie 3, which creates paths and scenes in real time as users move, rather than relying on fixed 3D views. Google said, “Unlike explorable experiences in static 3D snapshots, Genie 3 generates the path ahead in real time as you move and interact with the world.”

Users can sketch worlds, explore them from first or third person views, and remix existing creations, although sessions are limited to 60 seconds and realism can vary. Access is now open to Google AI Ultra subscribers in the U.S., and the company said it will use feedback to improve control, stability, and future features as it studies how world models may support AI research, robotics, and creative tools.

4. Quantum Enters New York Capital Markets

Finally, Options Technology launched the first commercial quantum system for finance users in New York City. The platform runs inside a Digital Realty data center and links quantum hardware from Oxford Quantum Circuits with CPU and GPU systems.

The focus is on heavy tasks like risk modeling and portfolio balance. These jobs rely on testing many outcomes, which suits quantum methods. Chief Executive Danny Moore said, “Quantum computing is no longer theoretical for capital markets; it’s becoming a practical tool for specific, high-value problems.”

As a result, banks and funds can test quantum tools inside secure and low-delay setups without changing live systems. This marks a small but clear step from trials toward early use in finance.

We used TipRanks’ Comparison Tool to line up all the stocks appearing in the piece alongside quantum computing stocks. It’s a quick way to see how they stack up and where the field could be heading.