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BERKELEY, Calif. - Rigetti Computing, Inc. (NASDAQ:RGTI), a quantum computing systems developer with a market capitalization of $2.43 billion, announced its selection to participate in the Defense Advanced Research Projects Agency’s (DARPA) Quantum Benchmarking Initiative (QBI). According to InvestingPro data, the company maintains a strong financial position with more cash than debt and a healthy current ratio of 17.42. The program aims to assess the feasibility of quantum computing achieving utility-scale operation by 2033.
Rigetti will enter Stage A of the QBI, a six-month assessment period with the potential to earn up to $1 million upon completion of program milestones. While the company generated $10.79 million in revenue over the last twelve months, InvestingPro analysis indicates it’s currently trading at a high revenue multiple, reflecting investor optimism about its quantum computing potential. The company’s concept for a Utility-Scale Quantum Computer (USQC) involves its proprietary multi-chip architecture and scalable quantum error correction (QEC) codes. Riverlane, a leader in QEC technology and Rigetti’s long-time partner, will collaborate on refining the USQC concept and validating the technology.
The DARPA initiative will evaluate quantum computing concepts through a multi-stage process, with each stage representing increased scrutiny. Rigetti’s approach will leverage Quantum Low Density Parity Check (qLDPC) codes, which require fewer physical qubits than traditional surface codes, aiming for a more efficient scaling towards fault-tolerant systems.
Rigetti’s CEO, Dr. Subodh Kulkarni, expressed confidence in the company’s positioning to meet DARPA’s 2033 target, citing a decade of developing intellectual property and expertise in high-performing quantum computers. The company’s CTO, David Rivas, highlighted the performance of their 84-qubit Ankaa-3 system and their roadmap towards 100+ qubits with improved error rates, aligning with DARPA’s goals.
Rigetti’s strategy includes the development of quantum integrated circuits capable of running qLDPC codes natively, which could lead to the high qubit counts and performance metrics required for utility-scale applications. The company has been operating quantum computers over the cloud since 2017, serving enterprise, government, and research clients, and selling on-premises quantum computing systems since 2021.
The selection by DARPA underscores Rigetti’s advancements in superconducting qubit technology, including a novel chip fabrication technique and a multi-chip architecture that have contributed to its industry-leading position. The stock has demonstrated remarkable performance, with a 506% return over the past year, and analysts have set price targets ranging from $12 to $17. For deeper insights into Rigetti’s financial health and growth prospects, including additional ProTips and comprehensive analysis, visit InvestingPro. The information for this article is based on a press release statement from Rigetti Computing, Inc.
In other recent news, IonQ announced the availability of its IonQ Forte Enterprise quantum computer on Amazon Braket, a service from Amazon Web Services. This development aims to enhance global accessibility to quantum computing for developers, fostering the creation of commercial applications across various industries. The collaboration with AWS marks a significant step for IonQ, as it meets Amazon’s criteria for commercial availability. Meanwhile, the broader quantum computing sector has seen fluctuating investor sentiment, influenced by comments from Nvidia’s CEO Jensen Huang, who expressed skepticism about the current stage of quantum computing technology. Despite this, IonQ and other quantum companies experienced a rebound in stock prices following a sell-off triggered by Huang’s remarks. D-Wave Quantum recently announced a stronger-than-expected revenue forecast, contributing to a surge in its stock price. This optimism is supported by a peer-reviewed paper demonstrating D-Wave’s quantum computer outperforming a classical supercomputer. Additionally, Needham analyst N. Quinn Bolton maintained a positive outlook on D-Wave, highlighting its recent achievements and scientific publications.
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