Quantum Leap: India's Unstoppable Ascension in Quantum Technologies
Your Weekly Shortcut to Deeptech Investing—Exclusive Trends & Startup Reports for VCs & Angels in Just 5 Minutes
By Vishal Katariya (Deep Science and Technology Investments, Ankur Capital)
Quantum computing and quantum communication technologies promise to solve some of our most urgent problems.
What is going on?
Quantum technologies generally are quickly making the progression from the lab to the market. Quantum computing and communication, in particular, promise to change the way we approach many processes core to our society. They address and solve some fundamental bottlenecks such as the end of Moore’s law scaling, the need for faster machine learning algorithms, or the need for improved secure communication protocols. The excitement for these technologies is palpable, in particular because some applications have been deployed in the real world.
What does it mean?
What exactly do quantum technologies promise? Firstly, quantum computers promise marked improvements in a number of algorithms. Shor’s landmark algorithm for prime number factoring has huge repercussions for quantum cryptography. Quantum machine learning represents an entirely new paradigm of efficiently dealing with large models and datasets. Quantum computers provide superior methods to model quantum systems, removing fundamental bottlenecks in drugs and materials discovery. Communicating via protocols such as quantum key distribution (QKD) promises security that is guaranteed by the laws of physics itself. The list doesn’t end at just computing and information processing, as quantum technologies are also used to make better sensors, precise clocks, and so on.
Why does it matter?
💸For markets: With the potential to revolutionize multiple industries like molecular modeling, finance, machine learning, and secure communications, Quantum Technologies have become a major global investment focus, and crucial for national security,
Since quantum technologies hold the promise to revolutionize the fields of molecular modeling, finance, machine learning, and secure communications, they are a key focus area for investments pouring in around the world. Financial institutions such as JP Morgan, too, are keenly studying quantum computing and the effects it may have on their operations. Further, quantum technologies are a matter of national security, with the result that there is government- and military-sponsored research and development happening around the world. Typically, large military-led projects have major spilloffs into civilian life too, for example the DARPA’s work in the 1960s which led to the birth of the internet. Defense sponsorship of the sector will also create an entire ecosystem of researchers and vendors, multiplying the economic impact of the defense-related spending.
Earlier this year, India launched the National Quantum Mission, a seven-year program to develop the quantum technology ecosystem in India. The mission earmarks Rs. 6,000 crore to be spent on quantum technologies, an amount similar in quantity to the $1.2 billion earmarked for quantum technologies in the USA’s 2018 Quantum Initiative Act.
There is a large number of quantum computing startups across the globe, many of which have come up only in the last five years. These startups operate across geographies, and across specific quantum technologies, ranging from companies making their own quantum computers and software to program them to companies providing quantum key distribution (QKD) as a service. They raised a cumulative $1.85 billion in 2022, up from $1.67 billion in 2021.
🧑🏿🤝🧑🏻For society: Since quantum technologies currently require advanced technical skills for implementation, their applications will mainly be limited to enterprise scenarios in secure communication, finance, and machine learning.
Since deploying quantum technologies at the moment requires a high degree of technical sophistication, its applications will typically be limited to enterprise use-cases, whether it is in secure communication, finance, or machine learning. These technologies will thus impact our lives indirectly to begin with, but they will help us address some of our most urgent problems.
For example, quantum computers could be used to engineer biological methods of manufacturing nitrogen fertilizer; the conventional process uses 3% of our global energy output. This will happen because quantum computers will enable us to better understand the behaviour of the molecule nitrogenase. By speeding up and reducing the carbon intensity of core computational processes in machine learning, quantum computing also promises to make modern artificial intelligence more sustainable and scalable.
🔮What’s next? Challenges and Future Prospects
With the explosion of research and private funding, the involvement of governments around the world, and the rapid maturation of quantum technologies, the time is ripe for uptake of quantum technologies. Startups in this field have been making significant progress in the space, too, with some of the highlights being
IonQ, in Maryland, USA, is embarking on a quest to make trapped-ion quantum computers, which have the potential to be used for real-world algorithms much sooner than other quantum computing paradigms. The company has already gone public after being founded in 2015.
Pasqal, in Palaiseau, France, is a startup that has made a 100-qubit quantum computer using neutral atoms and has raised upwards of €100 million to scale up its computers to 1000 qubits.
Rigetti Computing, another USA-based company, has developed an 80-qubit computer and is aiming to scale to 4,000 qubits by 2026. The company went public in 2021 after being founded in 2021.
There are also a number of Indian startups in this space, such as QpiAI, developing software solutions for developing quantum and AI models, QNu Labs, the first company to have developed commercial cybersecurity products using quantum physics, and BosonQPsi, which is enabling new-age simulations via a quantum paradigm. These startups lag behind compared to their global counterparts, but with the right environment and talent, they should be able to catch up to speed.
We are already at a stage where quantum computers have “quantum advantage” over our best classical computers, and thus we’re faced with the exciting prospect of quantum technologies becoming more and more important and widespread. Across the world, it is one of the most happening fields in deeptech, both in technological breakthroughs as well as increased funding. We can’t wait for quantum technologies to start attacking and addressing humanity’s most pressing problems.
✨ That’s all for today. Thanks for reading !
💖Like, follow and subscribe to our Community ! Stay tuned for our next Deeptech Analysis coming up next week with our Deeptech Insights Newsletter.
Much love Deeptechers!👋