WiMi researches quantum encryption key generation technology

BEIJING - WiMi Hologram Cloud Inc. (NASDAQ:WIMI), a $465 million market cap technology company with a strong balance sheet showing more cash than debt, announced Friday it is conducting research on a quantum crypt generator called QryptGen that creates encryption keys using quantum machine learning technology.

The company reports its approach combines quantum algorithms with traditional stochastic gradient descent algorithms to optimize the training of quantum generative adversarial networks, aiming to produce encryption keys with enhanced security and randomness. According to InvestingPro data, WiMi maintains a healthy financial position with a current ratio of 3.5, indicating strong liquidity to fund its research initiatives.

According to the company, quantum encryption keys generated through this technology could potentially offer greater security than traditional encryption methods like RSA and AES, which face increasing challenges as computing power advances.

The quantum key distribution system being researched is based on quantum mechanical principles where any measurement of a quantum state disturbs that state, potentially allowing detection of attempted data breaches.

WiMi acknowledges that quantum machine learning encryption technology faces challenges including stability and scalability issues with quantum computing hardware, as well as the need for further algorithm optimization.

The Beijing-based company, which specializes in holographic cloud services and augmented reality technologies, stated it will continue researching quantum machine learning encryption technology.

This information is based on a press release statement from the company.

In other recent news, WiMi Hologram Cloud Inc. reported a significant 926% increase in its net income for the first half of 2025, reaching RMB 126.3 million ($17.6 million). This remarkable growth is a notable development for the company, which continues to innovate in the field of quantum computing and neural networks. WiMi unveiled a quantum-assisted unsupervised data clustering technology that integrates quantum computing with Self-Organizing Map (SOM) neural networks to enhance data analysis efficiency. Additionally, the company has launched a new Quantum Random Access Memory (QRAM) technology, addressing storage limitations in quantum computing systems by offering improved capacity and efficiency. WiMi is also advancing research on distributed quantum computing networks, utilizing cross-optical network links to connect multiple quantum processors, thereby maintaining data integrity over long distances. The firm has further developed a Scalable Quantum Neural Network (SQNN) technology, leveraging multi-quantum-device collaborative computing for data processing. These technological advancements highlight WiMi’s ongoing commitment to innovation in the quantum computing sector.

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