Quantum Computing CEO Fires Back at Jensen Huang's Pessimistic Outlook

Quantum computing stocks took a significant hit this week after Nvidia CEO Jensen Huang expressed a pessimistic outlook on the sector, stating that "very useful" quantum computers are likely 15 to 30 years away. However, D-Wave Quantum CEO Alan Baratz has hit back at Huang's remarks, asserting that his company's quantum computers are already in commercial use today.

In a LinkedIn post, Baratz criticized Huang's timeline, stating that D-Wave's quantum computers are already solving real-world problems for businesses like Mastercard and Japan's NTT Docomo. He argued that D-Wave's annealing approach to quantum computing is more advanced than the gate-based approach used by other companies, and that it is likely many years ahead of the competition.



Baratz also pointed out that D-Wave has raised $175 million in gross proceeds through a stock sale near the end of 2024, which contributed to a significant share-price bump. This raise coincided with Google announcing a breakthrough in quantum computing, which also boosted investor interest in the sector.

Despite the recent reckoning, D-Wave's stock price has seen a slight recovery, trading at $6.10 USD per share as of market close on Thursday. However, it is still a fraction of its value before Huang's comments.

While Huang's remarks may hold some validity for gate model quantum computers, Baratz believes that they are "100% off base" when it comes to annealing quantum computers. He expressed willingness to meet with Huang to discuss the capabilities of D-Wave's technology, highlighting that their systems can tackle problems beyond the reach of Nvidia's fastest systems.

The quantum computing sector experienced a significant setback this week, with Nvidia CEO Jensen Huang's remarks casting a long shadow over the timeline for the practical application of quantum computers. Huang's cautious outlook during Nvidia's analyst day, where he suggested that "very useful" quantum computers might be 15 to 30 years away from realization, led to a sharp decline in stock prices for leading quantum computing companies.

Quantum Computing Inc. (QUBT), IonQ Inc. (IONQ), Rigetti Computing (RGTI), and D-Wave Quantum (QBTS) saw their shares plummet in premarket trading, with drops exceeding 24% for Quantum Computing, D-Wave, and Rigetti, and a 16% decrease for IonQ. This downturn was particularly stark given the recent surge in these stocks, fueled by optimism about quantum computing's potential and amplified by Alphabet's recent advancements in the field. Over the past year, quantum computing stocks have seen dramatic gains, with Quantum Computing Inc. soaring by more than 1,940%, Rigetti climbing over 1,450%, D-Wave surging by more than 1,025%, and IonQ rising nearly 300%.

Huang's prediction not only affected U.S.-based companies but also had a ripple effect in Asia, notably impacting Chinese quantum computing firms like QuantumCTek Co. Ltd and Accelink Technologies Co. Ltd, whose shares also fell significantly. His statement provided a stark contrast to the bullish sentiment that had driven these stocks to new heights, suggesting that the technology's journey to becoming a mainstream, practical tool might be much longer than the market had anticipated.

This reaction in the stock market underscores the volatility and speculation inherent in investing in cutting-edge technologies like quantum computing. While the theoretical benefits of quantum computing, including solving complex problems in cryptography, drug discovery, and optimization, are well-documented, the practical implementation faces numerous challenges. These include not only the technical hurdles of maintaining quantum coherence and reducing error rates but also the significant investment in research and development required to make these systems viable for everyday use.

Moreover, Huang's comments reflect a broader industry acknowledgment that quantum computing, despite its promise, remains in the realm of advanced research rather than immediate commercial application. This perspective tempers expectations and might encourage a more realistic approach to investment and development in the sector, focusing on long-term growth and partnerships with classical computing technologies to bridge current gaps.

Investors, having enjoyed the meteoric rise of quantum computing stocks, now face a reality check, urged to reconsider their strategies in light of a technology that, while revolutionary, is still years, if not decades, as per Huang, from widespread utility. This scenario invites a reevaluation of how companies and investors approach the development of quantum technology, emphasizing patience and a focus on incremental, sustainable progress over speculative gains.

In conclusion, while Nvidia CEO Jensen Huang's remarks sent shockwaves through the quantum computing sector, D-Wave Quantum CEO Alan Baratz has hit back, asserting that his company's quantum computers are already in commercial use today. Baratz criticized Huang's timeline, arguing that D-Wave's annealing approach to quantum computing is more advanced than the gate-based approach used by other companies. Despite the recent setback, D-Wave's stock price has seen a slight recovery, trading at $6.10 USD per share as of market close on Thursday. The quantum computing sector faces numerous challenges in practical implementation, but investors are encouraged to adopt a more realistic approach to investment and development in the sector, focusing on long-term growth and partnerships with classical computing technologies.