Alphabet stock rises as quantum computing breakthrough offsets OpenAI concerns

Published 22/10/2025, 16:26
© Reuters

Investing.com -- Google parent Alphabet (NASDAQ:GOOGL) stock traded higher by 2% Wednesday, rebounding from Tuesday’s slide following OpenAI’s browser launch and buoyed by significant quantum computing advances.

The recovery came as Google announced its Willow quantum chip has demonstrated "the first-ever algorithm to achieve verifiable quantum advantage on hardware," running 13,000 times faster than the world’s fastest classical supercomputers. This breakthrough represents a significant milestone in quantum computing’s path toward practical applications.

Google’s quantum computing achievement, dubbed "Quantum Echoes," can help determine the structure of molecules and potentially advance fields ranging from medicine to materials science. The company validated the approach in partnership with UC Berkeley by studying molecules with 15 and 28 atoms.

Adding to Wednesday’s positive momentum, reports emerged that Anthropic is in talks with Google Cloud for a deal potentially worth tens of billions of dollars, further strengthening Google’s position in the artificial intelligence space.

The gains helped offset investor concerns following Tuesday’s unveiling of OpenAI’s new browser, which some viewed as potential competition to Google’s core search business.

Google’s quantum computing breakthrough builds on the company’s previous quantum milestones, including its 2019 demonstration of quantum supremacy and last year’s advances in error suppression with the Willow chip.

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