Nvidia’s Jensen Huang is ‘dead wrong’ about quantum computers, D-Wave CEO says
D-Wave Quantum CEO Alan Baratz said Nvidia’s Jensen Huang is “dead wrong” about quantum computing after comments from the head of the chip giant spooked Wall Street on Wednesday.
Huang was asked Tuesday about Nvidia’s strategy for quantum computing. He said Nvidia could make conventional chips that are needed alongside quantum computing chips, but that those computers would need 1 million times the number of quantum processing units, called qubits, that they currently have.
Getting “very useful quantum computers” to market could take 15 to 30 years, Huang told analysts.
Huang’s remarks sent stocks in the nascent industry slumping, with D-Wave plunging 36% on Wednesday.
“The reason he’s wrong is that we at D-Wave are commercial today,” Baratz told CNBC’s Deirdre Bosa on “The Exchange.” Baratz said companies including Mastercard and Japan’s NTT Docomo “are using our quantum computers today in production to benefit their business operations.”
“Not 30 years from now, not 20 years from now, not 15 years from now,” Baratz said. “But right now today.”
D-Wave’s revenue is still minimal. Sales in the latest quarter fell 27% to $1.9 million from $2.6 million a year earlier.
Quantum computing promises to solve problems that are difficult for current processors, such as decoding encryption, generating random numbers and large-scale simulations. Technologists have been working on it for decades, and companies including Nvidia, Microsoft and IBM are pursuing it today, alongside researchers at startups and universities.
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., speaks while holding a Project Digits computer during the 2025 CES event in Las Vegas, Nevada, US, on Monday, Jan. 6, 2025. Huang announced a raft of new chips, software and services, aiming to stay at the forefront of artificial intelligence computing. Photographer: Bridget Bennett/Bloomberg via Getty Images
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D-Wave was among a number of companies that enjoyed a revival of interest from investors in December, when Google announced a breakthrough in its own research. Google said it had completed a 100 qubit chip, the second of six steps in its strategy to build a quantum system with 1 million qubits.
D-Wave shares soared 178% in December after popping 185% the month prior. Quantum company Rigetti Computing, which plummeted 45% on Wednesday, quintupled in value last month. IonQ dropped 39% on Wednesday. The stock rose 14% in December following a 143% rally in November.
Baratz acknowledged that one approach to quantum computing, called gate-based, may be decades away. But he said uses an annealing approach, which can be deployed now.
While Huang’s “comments may not be totally off-base for gate model quantum computers, well, they are 100% off base for annealing quantum computers,” Baratz said.
Nvidia declined to comment.
Even after Wednesday’s slide, D-Wave shares are up about 600% in the last year, giving the company a market cap of $1.6 billion.
Quantum computing has also been boosted by investor interest in artificial intelligence, the technology that’s led to surging demand for Nvidia’s graphics processing units, which use conventional transistors instead of qubits. Nvidia’s market cap has increased by 168% in the past year to $3.4 trillion.
Baratz said D-Wave systems can solve problems beyond the capabilities of the fastest Nvidia-equipped systems.
“l’ll be happy to meet with Jensen any time, any place, to help fill in these gaps for him,” Baratz said.
This photo illustration created on Jan. 7, 2025, in Washington, D.C., shows an image of Mark Zuckerberg, CEO of Meta, and an image of the Meta logo.
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Meta’s core online advertising business could take a $7 billion hit this year due to President Donald Trump’s tough China tariffs impacting retailers in the country.
That’s according to a MoffettNathanson research note published Tuesday that analyzes the potential impact of China-linked retailers like Temu and Shien slashing their Facebook and Instagram advertising budgets amid the U.S. and China trade dispute.
The MoffettNathanson analysts pointed to Meta’s latest annual report in which the company revealed that its China revenue was $18.35 billion in 2024, equating to a little over 11% of total its total sales. Like other analysts, MoffettNathanson believe Temu and Shien comprise the bulk of Meta’s China business, and if those online retailers cut back on their ad campaigns this year, the social networking giant’s 2025 ad sales could be impacted by $7 billion.
Meta did not immediately respond for a request for comment.
There are already signs of a pullback, the analysts wrote, citing a CNBC report about Temu reducing its U.S. advertising spending and seeing a big drop in its Apple App Store rankings following Trump’s China tariffs.
“China’s importance to Meta’s business cannot be overstated,” the analysts wrote in the note. “While Meta does not provide a country-level breakdown of revenue within Europe, we logically can presume that China is Meta’s second-largest revenue source after the United States — a remarkable position for a country where Meta has no users or active platforms.”
Meta could be in even more trouble if the broader markets heads into a recession this year, as some analysts and corporate financial chiefs have predicted. A “truly prolonged economic downturn” combined with the U.S. and China trade dispute “could wipe $23 billion in 2025 advertising revenues off Meta’s books and crush our 2025 earnings by -25%,” the analysts said.
“As noted earlier, we believe Meta is particularly exposed to a pullback in ad spend from Chinese advertisers,” the analysts said. “In a scenario where a recession is triggered or exacerbated by escalating trade tensions, Meta would face a dual headwind: cyclical advertising weakness and a targeted decline in Chinese ad spend.”
The MoffettNathanson analysts still maintain a Buy rating on Meta, said they have but decreased their target price by $185 to $525.
Meta shares have dropped about 19% to $499.36 since Trump was officially sworn in as U.S. president for the second time.
The company reports its first-quarter earnings next Wednesday.
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