A woman bikes by a giant Google logo at Google’s Bay View campus in Mountain View, California on Aug 13, 2024 where the “Made by Google” media event was held today.
Josh Edelson | AFP | Getty Images
Google has unveiled a new chip that it says marks a major breakthrough in the field of quantum computing, an area seen as the next frontier for many tech companies.
However, while Google’s achievements have been noted for advancing the field, experts say that quantum computing still has no real-world uses — yet.
“We need a ChatGPT moment for quantum,” Francesco Ricciuti, associate at venture capital firm Runa Capital, told CNBC Tuesday, referencing OpenAI’s chatbot that has been credited with driving the boom in artificial intelligence. “This is probably not that.”
What has Google claimed?
Proponents of quantum computing claim it will be able to solve problems that current computers can’t.
In classical computing, information is stored in bits. Each bit is either a one or zero. Quantum computing uses quantum bits or qubits which can be zero, one or something in between.
The theory is that quantum computers will be able to process much larger volumes of data, leading to potential breakthroughs in areas like medicine, science and finance.
“Typically the more qubits you use, the more errors will occur, and the system becomes classical,” Hartmut Neven, founder of Google Quantum AI, wrote in a blog post.
Willow can reduce errors “exponentially” as the number of qubits is scaled up, the U.S. tech giant said, which “cracks a key challenge in quantum error correction that the field has pursued for almost 30 years.”
Google measured Willow’s performance using the so-called random circuit sampling (RCS) benchmark, which presents a computational task that’s difficult for classical computers to solve.
Willow performed a computation in under five minutes that would take one of today’s fastest supercomputers 10 septillion years — or 10,000,000,000,000,000,000,000,000 years — Google said.
“This mind-boggling number exceeds known timescales in physics and vastly exceeds the age of the universe,” Neven said.
Has Google truly made a quantum breakthrough?
Google’s Willow chip has demonstrated a “new milestone in how quantum computers can deal with errors that happen during their operation,” according to Winfried Hensinger, professor of quantum technologies at the University of Sussex.
“Their technique becomes more effective in reducing errors the more extra qubits are being used to correct for these errors. This is a very important milestone for quantum computers.”
But despite optimism that quantum computing could one day change the world — or at least computers’ role in it — experts in the field have suggested that Google’s quantum computing breakthrough is still lacking in real-world uses.
Runa Capital’s Ricciuti said that Google’s claims of success are “based on tasks and benchmarks that are not really useful for practical cases.”
“They are trying to define a really high problem for normal computers that they can solve with quantum computers. It is amazing they can do that, but it doesn’t really mean it is useful,” Ricciuti added.
Hensinger said Willow “is still well too small to do useful calculations” and that quantum computers will require “millions of qubits” to solve really important industry problems. Willow has 105 qubits.
Meanwhile, Google’s chip is based on superconducting qubits, a technology that requires intense cooling, which could be a limiting factor in scaling up.
“It may be fundamentally hard to build quantum computers with such large number of qubits using superconducting qubits as cooling so many qubits to the required temperature – close to absolute zero – would be hard or impossible,” Hensinger said.
Still both Hensinger and Ricciuti agree the developments by Google add to the excitement around quantum computing and continued development in the space.
“This result increases confidence further that humanity will be able to build practical quantum computers enabling some of the high impactful applications quantum computers are known for,” Hensinger said.
An electric air taxi by Joby Aviation flies near the Downtown Manhattan Heliport in Manhattan, New York City, U.S., November 12, 2023.
Roselle Chen | Reuters
Air taxi maker Joby Aviation in a new lawsuit accused competitor Archer Aviation of using stolen information by a former employee to “one-up” a partnership deal with a real estate developer.
“This is corporate espionage, planned and premeditated,” Joby said in the lawsuit filed Wednesday in a California Superior Court in Santa Cruz, where the company is based.
Archer and Joby did not immediately respond to CNBC’s request for comment.
The lawsuit alleges that former U.S. state and local policy lead, George Kivork, downloaded dozens of files and sent some content to his personal email two days before he resigned in July to take a job at Archer, which had recruited him.
By August, Joby said a partner that worked with Kivork said it had been approached by Archer with a “more lucrative deal.” Joby alleges that the eVTOL rival’s understanding of “highly confidential” details helped it leverage negotiations.
Joby also said the developer attempted to terminate the agreement, citing a breach of confidentiality.
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Kivork refused to return the files when Joby approached him after conducting an investigation, according to the suit. The company also said Archer denied wrongdoing, and would not disclose how it learned about the terms of the agreement or provide results from an internal investigation it allegedly undertook.
The lawsuit comes during a busy period for electric vertical takeoff and landing (eVTOL) technology as companies race to gain Federal Aviation Administration certification to start flying commercially. ‘
Joby argued in the complaint that it’s “imperative” to protect Joby’s work “from this type of espionage” to promote the sector’s success and ensure fair competition.
Last week, Joby said it completed its first test flight for a hybrid aircraft it’s working on with defense contractor L3Harris. This month, Amazon-backed Beta Technologies, another electric flight company, also went public on the New York Stock Exchange.
Joby shares have more than doubled over the last year, while Archer is up about 68%.
In August 2023, Archer settled a previous legal dispute with Boeing-owned Wisk Aero over the alleged theft of trade secrets. As part of the deal, Archer agreed to use Wisk as its autonomous tech partner.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets : There was an ugly reversal in the market Thursday. Stocks soared for most of the morning in reaction to Nvidia ‘s strong quarter, bullish outlook on AI spending, and pushback that customers weren’t generating a sufficient return on their investment. Nvidia shares climbed as high as $196 on Thursday — a roughly 5% gain — and its gravitational pull helped lift other technology and AI-adjacent industrial stocks. The market’s gains pushed the S & P 500 into positive territory for the week. However, around 11 a.m. ET, the market began to fall rapidly, with technology and industrial names leading the decline. Nvidia gave up all of its gains and dropped 2%. Bitcoin hit its lowest level since late April. Notable defensive stocks like consumer staples held onto their gains, though. That resilience reinforces our decision to diversify further, which we did earlier this week , by adding Procter & Gamble to the portfolio. The S & P 500’s decline has pushed the index back toward the lows of its recent downturn, marking a roughly 5% pullback from its high. It remains to be seen whether Thursday’s reversal is a sign of investors continuing to retreat from risk assets or simply a retest of the recent downdraft. But Nvidia’s earnings report gave zero indication of a slowdown in demand for AI compute. Interest rate cut: Expectations for a 25-basis-point rate cut at the Federal Open Market Committee’s next meeting in December continue to fluctuate. One month ago, a rate cut seemed like a sure thing with a 98.8% probability, according to the CME FedWatch Tool . But the odds dropped to about 50% a week ago after a slew of hawkish commentary from Federal Reserve members. On Wednesday, the odds of a cut plummeted to 30% after the release of the October Fed minutes, which showed that the central bank was hesitant to lower rates again this year. But after the long-delayed September jobs data finally came out Thursday, the probability of a 25-basis-point reduction jumped to 40%. Although the economy added 119,000 jobs in September, more than double the forecasted figure, the unemployment rate ticked higher. The Fed is in a bind, trying to balance a softening labor market against the risk that a rate cut could reignite inflation. Up next: Gap, Ross Stores , Intuit , and Veeva Systems report after the closing bell. BJ’s Wholesale Club will post results Friday morning. On the economic data side, tomorrow we’ll get November’s S & P Global Flash PMI for Manufacturing and Services, along with the University of Michigan’s consumer sentiment survey. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Bitcoin dropped on Thursday to levels not seen in more than six months, as investors appeared to pull back exposure to riskier assets and weighed the prospects of another Federal Reserve rate cut next month.
The flagship digital currency fell to as low as $86,325.81, its lowest level since April 21. It last traded at $86,690.11.
The release of stronger-than-expected U.S. jobs data raised questions about whether the central bank would lower its benchmark overnight rate. The U.S. economy added 119,000 in September, well above the 50,000 economists polled by Dow Jones expected.
That report sent the probability of a December rate cut to around 40%, according to the CME Group’s FedWatch tool.
Bitcoin’s pullback formed part of a broader cryptocurrency market decline. XRP was last down 2.3% on the day, and is below $2.00, while ether shed more than 3% to trade well below $3,000. Dogecoin was unchanged.
The world’s oldest crypto also led stocks lower, even after a blockbuster Nvidia earnings report. Traders who are heavily invested in AI-related stocks tend to also hold bitcoin, linking the two trades.
Bitcoin’s price has largely slid since a rash of cascading liquidations of highly leveraged crypto positions in early October.