Quantum Leap: IBM installs second Quantum System Two outside U.S.

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

ADVANTAGE2: D-Wave Quantum (QBTS) announced an agreement with Swiss Quantum Technology to deploy a D-Wave Advantage2 annealing quantum computer in Europe. Announced at Digital Innovation Forum – ComoLake 2025, the agreement represents a EUR 10M commitment from SQT, with an option to purchase the system. The company said, “Capable of solving complex computational problems beyond the reach of classical computers, the placement of this Advantage2 system also supports the newly formed Q-Alliance, an initiative that empowers Italy with new global infrastructure in quantum computing to support the country’s Digital Transformation future. The Advantage2 system funded by SQT will be accessible to customers via D-Wave’s Leap real-time quantum cloud service. Featuring D-Wave’s most advanced quantum processor to date, the 4,400+ qubit Advantage2 system is a powerful and energy-efficient quantum computer designed to facilitate quantum and hybrid quantum applications for production deployment.”

QUANTUM COMMUNICATION IN SPACE: WISeKey (WKEY) announced that its subsidiary, WISeSat.Space in collaboration with its other subsidiary, Sealsq (LAES) is set to launch its next-generation post-quantum-secure satellite aboard a SpaceX Falcon 9 rocket from the Vandenberg Space Force Base in California. This satellite will serve as a testbed for post-quantum communication protocols from space. The WISeSat satellite integrates Sealsq’s post-quantum cryptographic semiconductors and WISeKey’s Root of Trust, enabling secure end-to-end communication between satellites, ground stations, and connected IoT devices.

POST-QUANTUM KYC: Sealsq and Wecan Group announced a strategic collaboration to develop a post-quantum KYC solution. This initiative aims to secure client data from collection to processing, addressing the growing risk of future decryption by state or malicious actors as quantum computing capabilities evolve.

QUANTUM SYSTEM TWO: The Basque Government and IBM (IBM) unveiled the first IBM Quantum System Two in Europe at the IBM-Euskadi Quantum Computational Center in San Sebastian. The installation of this system marks a milestone in the partnership between the two parties, which began in 2023 within the framework of the Basque Quantum initiative, promoted by the Basque Government to help make Euskadi an international hub for quantum technologies. The system installed on the Ikerbasque Foundation’s main campus, at the IBM-Euskadi Quantum Computational Center, was inaugurated at a ceremony. This IBM Quantum System Two installation is only the second such deployment outside the US. It is powered by a 156-qubit IBM Quantum Heron processor, one of the best performing quantum processors developed by the company, to date. Designed to be scalable and integrate multiple processors in the future, this system marks a technological milestone by enabling the execution of utility-scale algorithms, surpassing the capabilities of classical brute-force simulation.

SECURITY: Sealsq and Landis+Gyr (LGYRF) announced that they are expanding their relationship with the addition of Sealsq ‘s cyber security solution in Landis+Gyr’s North American manufacturing facilities. Landis+Gyr is implementing the Sealsq IneS Public Key Infrastructure solution to add digital certificates for electric and gas metering devices during the manufacturing process. “Landis+Gyr has a long history of prioritizing cyber security for the grid. By expanding our relationship with Sealsq at our North American manufacturing facilities, we are positioned to continue evolving our security strategy to meet the needs of our utility customers well into the future,” said Todd Wiedman, chief security officer at Landis+Gyr.

CHEMISTRY PROBLEM SOLVING: IonQ (IONQ) announced an advancement in quantum chemistry simulations, demonstrating the accurate computation of atomic-level forces with the quantum-classical auxiliary-field quantum Monte Carlo algorithm. This demonstration, in collaboration with an automotive manufacturer, proved more accurate than those derived using classical methods and marks a milestone in applying quantum computing to complex chemical systems. The company said, “Computational chemistry techniques are used to predict forces arising from the atomic interactions and can be used to determine chemical reactivity. The ability to simulate atomic forces with extreme precision is critical for modeling materials that absorb carbon more efficiently. Accurate force calculations are essential for modeling how molecules behave and react, which is foundational to everything from drug discovery to decarbonization. With results shown by IonQ’s demonstration, quantum computing’s role in solving real-world chemistry problems has made meaningful progress. Unlike previous research which focused on isolated energy calculations, IonQ’s implementation enabled the calculation of nuclear forces at critical points where big changes occur. These forces can be fed into classical computational chemistry workflows to trace reaction pathways, improving estimated rates of change within systems, and aiding in the design of more efficient carbon capture materials. Building on IonQ’s prior collaborations in computational chemistry, this advancement extends IonQ’s work with the QC-AFQMC algorithm, one of the methods that IonQ believes will deliver commercial advantage in the coming years, while adding another use case that deepens the company’s expertise and expands its quantum chemistry portfolio.”

SHARE SALE: Quantum Computing (QUBT) filed to sell 37.18M shares of common stock for holders

GUIDANCE: Arqit Quantum (ARQQ) noted that, based on preliminary unaudited results, management expects revenue for the second half period ended September 30 of approximately $460,000-$470,000. For the full fiscal year revenue is expected to be $525,000-$535,000. Cash and cash equivalents were approximately $36.9M as of September 30.

MADE IN THE U.S.: Sealsq and Trusted Semiconductor Solutions announced a strategic partnership to co-develop “Made in US” post-quantum cryptography-enabled secure semiconductor solutions, reaching the highest levels of hardware certification tailored for U.S. defense and government agencies. Carlos Moreira, CEO of Sealsq, said: “This partnership marks a pivotal step in SEALSQ’s US strategy. TSS is an ideal Trusted-accredited partner already addressing US defense and government agencies to work with and combine our leadership in post-quantum security with America’s trusted semiconductor ecosystem to build the foundation for sovereign, quantum-resistant digital infrastructure.”

BUBBLE POTENTIAL: Quantum computing promises a lot, but that doesn’t mean investors aren’t at risk of getting burned, Martin Baccardax and Mackenzie Tatananni of Barron’s wrote. The collection of Rigetti Computing (RGTI), D-Wave Quantum, IonQ and Quantum Computing has risen nearly fourfold on average over the past year, but the technology has limited commercial use and generates relatively little revenue, according to the authors. The article contends that the bubble may keep inflating until it is tested by fundamentals.

ANALYST COMMENTARY: Roth Capital raised the firm’s price target on D-Wave Quantum to $50 from $20 and reiterated a Buy rating on the shares. The firm said it is encouraged by D-Wave’s signing of an additional European customer which includes a pathway to an eventual hardware sale. The securing of additional customers that are leveraging the company’s quantum annealing technology supports Roth’s constructive thesis, the analyst told investors in a research note.

H.C. Wainwright raised the firm’s price target on Arqit Quantum to $60 from $52 and maintained a Buy rating on the shares following the second half of 2025 preannouncement. The firm says improved visibility should result in higher shares a year from now.