Quantum Leap: IBM, AMD to co-develop quantum-centric supercomputing architecture

Welcome to the latest edition of “Quantum Leap” where The Fly decodes news and activity in the quantum computing space. 

QUANTUM-CENTRIC SUPERCOMPUTING: IBM (IBM) and AMD (AMD) announced plans to develop next-generation computing architectures based on the combination of quantum computers and high-performance computing, known as quantum-centric supercomputing. AMD and IBM are collaborating to develop scalable, open-source platforms, leveraging IBM’s development of performant quantum computers and software, and AMD’s high-performance computing and AI accelerators. AMD and IBM are exploring how to integrate AMD CPUs, GPUs, and FPGAs with IBM quantum computers to efficiently accelerate a new class of emerging algorithms, which are outside the current reach of either paradigm working independently. The teams are planning an initial demonstration later this year to show how IBM quantum computers can work in tandem with AMD technologies to deploy hybrid quantum-classical workflows. The companies also plan to explore how open-source ecosystems, such as Qiskit, could catalyze the development and adoption of new algorithms that leverage quantum-centric supercomputing.

CONVERGENCE: Sealsq (LAES) announced the launch of “Convergence,” an initiative designed to integrate the company’s most advanced technological projects and achievements into a single roadmap. This includes artificial intelligence, post-quantum cryptography, tokenization, satellite connectivity, advanced encryption, decentralized physical infrastructure networks, machine-to-machine tokenization, WISeID decentralized digital identity for people and objects, and root of trust and certification authority technology. At the heart of this initiative is WISeSat, which focuses on space technology for secure satellite communication, specifically for IoT applications, which operates a constellation of 22 satellites orbiting Earth. WISeSat is one of the subsidiaries of WISeKey (WKEY). WISeSat’s satellite infrastructure enables global, secure connectivity for IoT devices, digital identities, tokenization platforms, and DePIN applications. By combining this roadmap with AI-driven automation, decentralized identity, WISeSat’s satellite network, and WISeKey’s root of trust, Sealsq’s target is to build a resilient, intelligent, and interoperable digital trust architecture, ensuring that every person, object, and machine can authenticate and interact securely on a global scale.

NONCOMPLIANT: Quantum (QMCO) received a notice from Nasdaq stating that the company is not in compliance with Nasdaq Listing Rule 5250 as a result of the company’s delay in filing the Form 10-Q. The company must file the Form 10-Q or submit a plan to Nasdaq to regain compliance on or before September 15 in accordance with the Nasdaq Listing Rules. The notice has no immediate impact on the listing of the company’s common stock, which will continue to trade on Nasdaq, subject to the company’s compliance with other continued listing requirements of Nasdaq. Shares were down over 6% following the notice.

KUAENTUM JV: Sealsq announced the signing of a non-binding letter of intent with Ajyal Holding to establish a joint venture in the United Arab Emirates with the name Kuaentum. Building on UAE’s high-tech and space ecosystem, the joint venture intends to develop a cutting-edge post-quantum semiconductors personalization center in Abu Dhabi, and integrate a post-quantum satellite production line as part of its global semiconductor and space security strategy. The project is subject to standard closing conditions including, but not limited to, the execution and signing of definitive agreements. The Abu Dhabi Kuaentum joint venture is intended to serve as a secure hub for the personalization and testing of post-quantum semiconductors. Core services are expected to include digital ID injection and embedded software updates at both wafer and IC levels. In parallel, the facility plans to support the production of quantum-resilient communication satellites, delivering end-to-end security from chip to space. The partners estimate the investment required to complete this project will be on the order of approximately $100M.

TRANSITION INTO QUANTUM ERA: Microsoft (MSFT) stated in a blog post, “Quantum computing promises transformative advancements, yet it also poses a very real risk to today’s cryptographic security. In the future scalable quantum computing could break public-key cryptography methods currently in use and undermine digital signatures, resulting in compromised authentication systems and identity verification. While scalable quantum computing is not available today, the time to prepare is now. Microsoft is preparing to be quantum-safe and partnering with regulatory and technical bodies like the National Institute of Standards and Technology, Internet Engineering Task Force, International Organization for Standardization, Distributed Management Task Force, Open Compute Project, and European Telecommunications Standards Institute to align on quantum-safe encryption standards and support worldwide interoperability… Our QSP is a comprehensive and company-wide effort to enable Microsoft, our customers, and partners, to transition smoothly and securely into the quantum era. The program is governed by the QSP leadership team with representatives across all major business groups, research and engineering divisions, and functions.”

Microsoft noted its QSP strategy is guided by three priorities:

• Make Microsoft quantum safe by updating Microsoft first- and third-party services, supply chain, and ecosystem to become quantum safe and crypto-agile.
• Support customers, partners, and ecosystems to become quantum safe with appropriate tools and guidance.
• Promote global research, standards, and solutions for quantum-safe technologies and crypto-agility.

ANALYST COMMENTARY: B. Riley initiated coverage of IonQ (IONQ) with a Buy rating and $61 price target, which offers approximately 7% potential 12-month upside. The firm commented that IonQ is the sector’s revenue growth leader, tracking for a third year of 100% year-over-year gains. IonQ’s pipeline is progressing, with a fifth-generation product launching in the second half of 2025, the analyst told investors in a research note.