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Megacaps enter the Quantum chip race 2/27/25

TechCheck

CNBC

Disruptors, Investing, Faang, Technology, Business, Management, Cnbc, Tech

4.856 Ratings

🗓️ 27 February 2025

⏱️ 6 minutes

🧾️ Download transcript

Summary

Amazon is jumping into the Quantum computing race with their first quantum chip ‘ocelot.’ We look at the latest Megacap staking their claim in quantum, and what it means for the future of the evolving technology.

Transcript

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0:00.0

Amazon yesterday unveiling its first quantum chip. It's the latest announcement as mega caps are

0:05.5

staking their claims in the future of quantum. And our dear DuBos is all over that today. Hey, Dee.

0:11.0

Hey, Carl. So Amazon may be the latest to announce a chip, but this is a race that is Google's to lose.

0:16.7

Because while it may feel like quantum announcements and developments, they're happening faster than ever, there's still a massive delta between Google and its megacat peers.

0:26.4

Amazon's Osolot has nine qubits.

0:29.1

Microsoft, Majorana, 8, and Google's willow dwarfs them both at 105 cubits.

0:34.4

Now, qubits, they're an important metric.

0:36.4

The more of them, the more powerful the quantum

0:38.5

computer capable of solving bigger and more complex problems. And there are other metrics that

0:44.7

matter, like quality, stability, error correction. Google is also pushing through real-world

0:49.5

demos versus just theorizing. In Willow's case, it was a headline-grabbing breakthrough

0:54.0

that also had the most immediate

0:55.8

market impact, boosting Google stock and setting off that quantum bull run among smaller

1:01.4

pure play companies.

1:02.7

Now, it's a position, though, that Google investors may be familiar with and wary of, given

1:07.2

the state of play in another sector, artificial intelligence right now.

1:11.6

Now again, Google had the clear lead here for years.

1:14.6

It literally invented transformers, which laid the foundation for generative AI.

1:18.6

It also pioneered the groundwork for DeepSeaks distillation technique.

1:22.6

But the company prioritized reputation and risk management.

1:26.6

It moved cautiously in the face of its innovators' dilemma, and it had to play catch-up ultimately.

1:31.3

Now, today, Google is a paradox in the AI race.

...

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