Israel, IonQ, SUPREME - The Week in Quantum Computing – July 14th 2025
Issue #244
Quick Recap
Israeli quantum computing startups, highlighted by a new Earth & Beyond Ventures and Deloitte Catalyst map, have attracted about $650 million—over $300 million raised in 2025 alone—with Quantum Machines and Classiq as top recipients. McKinsey’s Quantum Technology Monitor 2025 projects the quantum technology market could reach $97 billion by 2035, with public funding accounting for $680 million out of nearly $2 billion invested in 2024. IonQ’s announcement of a $1.0 billion equity offering demonstrates confidence in the sector despite technical challenges. Meanwhile, the EU’s €35 million SUPREME project and KISTI’s new quantum partnership with IonQ highlight strong public and cross-national initiatives in Europe and South Korea. On the research and application front, advances included researchers extending transmon qubit coherence times to the millisecond scale—key progress toward fault-tolerant superconducting quantum processors—and a first successful application of quantum machine learning to optimizing semiconductor manufacturing yields. MicroAlgo Inc. developed a novel Grover-based quantum algorithm for finding pure Nash equilibria in graphical games, expanding quantum approaches to computational game theory. QCentroid launched a platform for benchmarking AI-generated optimization algorithms, facilitating transparent, repeatable testing across classical and quantum-inspired solutions for complex sectors like finance and logistics. A BIS report outlined practical frameworks for urgent migration to quantum-safe cryptographic standards in finance, warning that transition involves significant challenges and advocating for strategic, phased coordination.
The Week in Quantum Computing
Mapping Israeli quantum computing: $650 million raised as global race intensifies | Ctech
A map by Earth & Beyond Ventures and Deloitte Catalyst highlights nine core Israeli quantum computing startups, which have collectively raised about $650 million, over $300 million of which was secured in 2025. Major recipients include Quantum Machines ($170 million) and Classiq ($110 million). In addition, roughly 15 startups are advancing quantum sensing, communication, and advanced materials. While Israel’s national investment (100 million shekels, or $27 million, for the Israeli Quantum Computing Center) pales in comparison to US, China, UK, or EU efforts, robust private funding has propelled rapid sector growth. Deloitte’s Amit Harel notes government involvement is critical, while Earth & Beyond Ventures’ Noga Yaari points to Israel’s blend of research and entrepreneurship as a key differentiator as the quantum field nears industrialization.
Quantum Technology Monitor 2025 | McKinsey
McKinsey’s Quantum Technology Monitor 2025 highlights continued momentum in quantum computing, quantum communication, and quantum sensing, projecting a global quantum technology (QT) market of up to $97 billion by 2035. Quantum computing leads, with revenue expected to rise from $4 billion in 2024 to as much as $72 billion in 2035. In 2024, investment in QT start-ups jumped 50% to nearly $2 billion, with significant public funding now comprising 34% ($680 million) as governments ramp up support—public announcements exceeded $10 billion in early 2025, including Japan’s $7.4 billion commitment. Major players like SoftBank, Quantinuum, Aramco, and PsiQuantum were prominent investors or recipients. 2024 marked a pivot from growing qubit counts to stabilizing them, suggesting quantum technology's transition toward practical reliability.
An AI Use Case: Using QCentroid Platform to Benchmark AI-Generated Optimization Algorithms
QCentroid has introduced a cloud-based platform for benchmarking AI-generated optimization algorithms, offering comparative analysis across code produced by tools like OpenAI’s ChatGPT, xAI’s Grok, and DeepSeek. The platform facilitates standardized benchmarking of algorithms—including classical, quantum-inspired, and hybrid types—by assessing execution time, accuracy, stability, and resource usage. Its dashboard provides heatmaps, rankings, and analytics to help teams determine the most suitable AI-generated implementation for production or experimentation. Unique to QCentroid is its capacity to automate workflow and enable repeatable, transparent, and collaborative benchmarking, as well as to extend analyses to quantum or hybrid algorithms—addressing the rising need for rigorous, multi-paradigm performance testing in sectors like finance and logistics in 2025.
Quantum-readiness for the financial system: a roadmap
A BIS report by Raphael Auer, Donna Dodson, and others outlines a framework for the financial sector to transition toward quantum-safe cryptographic infrastructure, stressing urgent action due to the future risk that quantum computers may break current encryption. The paper highlights "broad awareness and cryptographic inventory" as critical first steps, and warns that migration is not a "simple algorithm replacement," citing performance and integration challenges. It recommends measures such as cryptographic agility, defence in depth, hybrid models, and phased migration. While post-quantum cryptography is viewed as a near-term solution, quantum key distribution’s immediate applicability is limited by infrastructure issues, as noted by national security agencies.
IonQ - IonQ Announces Pricing of $1.0 Billion Equity Offering
IonQ has announced the pricing of its $1.0 billion equity offering, a significant financial move in 2025 within the quantum computing sector. This capital raise demonstrates ongoing investor interest in scaling quantum hardware and research, despite the industry’s persistent technical hurdles. The successful pricing follows recent advancements in quantum technologies, underscoring IonQ’s ability to attract large-scale funding for continued innovation. As quantum companies navigate both enthusiasm and skepticism regarding practical applications and performance, IonQ’s billion-dollar offering signals sustained momentum in private investment for quantum computing development this year.
MicroAlgo Inc. Announces the Development of Grover-based Quantum Algorithm Technology for Finding Pure Nash Equilibria in Graphical Games
MicroAlgo Inc. announced on July 7, 2025, the development of a Grover-based quantum algorithm specifically aimed at finding pure Nash equilibria in graphical games. The company reports adapting Grover’s quantum search—known for its square-root speedup in searching unstructured databases—by converting game participants, strategies, and payoffs into Boolean expressions mapped onto quantum circuits. MicroAlgo states its key technical advancement is designing an oracle that reflects the logical structure of game payoffs via quantum gates. To address efficiency challenges in multi-dimensional game problems, the team developed a stepwise, feedback-driven search method.
New quantum record: Transmon qubit coherence reaches millisecond threshold
Researchers have achieved a new milestone in quantum computing by extending transmon qubit coherence times to the millisecond threshold. This breakthrough, reported in 2025, represents a significant advance over previous coherence records, marking a key step toward more reliable quantum operations. The achievement puts transmon qubits, a leading superconducting qubit architecture, closer to the error rates needed for practical quantum error correction. Institutions involved see this as a crucial development for scaling quantum processors and advancing quantum algorithms.
Quantum machine learning improves semiconductor manufacturing for first time
Researchers have, for the first time, demonstrated that quantum machine learning can improve semiconductor manufacturing processes. This breakthrough was achieved by applying quantum algorithms to data-driven process optimization, resulting in enhanced manufacturing yields. The work involves partnerships between academic institutions and industry players, though specific organizations and researchers are not named in the provided text. The findings mark a concrete application of quantum computing in a major commercial sector in 2025, showing measurable benefits over classical approaches and setting a precedent for quantum technologies to impact industrial operations.
EU selects SUPREME consortium to scale up industrial production of superconducting quantum chips
The European Union has chosen the SUPREME consortium, coordinated by VTT Technical Research Centre of Finland, to industrialize the production of superconducting quantum chips. The initiative, launched in July 2025, involves 11 partners across six countries, including CEA, Fraunhofer, and SEEQC, with a total budget of €35 million. The SUPREME project aims to create scalable, fabrication-ready quantum chips that will become a foundational platform for European quantum computing efforts. In a year where scaling from laboratory demonstration to industrial manufacturing remains a critical bottleneck, this marks a substantial public investment focused on Europe’s technological sovereignty and advancing quantum processor fabrication infrastructure.
KISTI Secures Funding for National Quantum Center of Excellence; Names IonQ as Primary Quantum Partner
The Korea Institute of Science and Technology Information (KISTI) has secured new funding to establish the National Quantum Center of Excellence and has named IonQ as its primary quantum computing partner. This collaboration aims to drive advancements in quantum research and workforce development in South Korea. According to the announcement, IonQ will provide its quantum hardware and software resources to KISTI researchers and students.
Nearly two-thirds of organizations consider quantum computing as the most critical cybersecurity threat in 3 - 5 years - Capgemini
A July 2025 Capgemini Research Institute report reveals that nearly two-thirds (65%) of organizations view quantum computing as the most critical cybersecurity threat in the next 3–5 years, with ‘harvest-now, decrypt-later’ attacks a major concern. Among ‘early adopters’ of quantum-safe technologies, six in ten expect ‘Q-day’—when quantum computers break current cryptography—within 5–10 years, and one in six anticipate it in just five years. The report underscores industry awareness, but finds many organizations still underestimate the risks, potentially exposing themselves to breaches and regulatory penalties
ZenaTech, Inc. Develops Prototype Quantum Computing Framework for AI Drone Solutions
ZenaTech, Inc. announced the successful development of its first quantum computing prototype focused on enhancing large dataset analysis for AI drone solutions within the Clear Sky project. This prototype integrates weather forecasting algorithms to enable real-time drone data processing, targeting commercial applications in agriculture, defense, and predictive energy inspections. CEO Dr. Shaun Passley described the quantum framework as initiating a growth phase, with plans to expand R&D from 6 to 25 employees. ZenaTech claims its system delivers high-accuracy weather forecasts and aims to boost efficiency and decision-making across critical sectors. However, operational risks and technical hurdles may challenge these ambitions, particularly given the rapid team expansion and the complexity of merging quantum computing with AI-driven drones.
It's not just JPMorgan, Goldman Sachs & others lost quantum talent too
Major financial institutions—including JPMorgan, Goldman Sachs, and Moody's—are experiencing significant turnover in their quantum computing teams. Notable departures include Nikitas Stamatopoulos (Goldman Sachs’ head of quantum research), William Zeng, Paul Burchard, and Sergio Gago (Moody’s head of quantum). Marco Pistoia, who rapidly expanded JPMorgan’s quantum team and opened 24 roles with salaries up to $325k as of June 2024, also left quietly in May. Departed specialists are moving to fields like AI (Gago to CTO of Cloudera) and quantum VC (Zeng), or joining startups like Phasecraft (Stamatopoulos). Insider sources suggest banks may have over-expanded quantum teams too quickly, underscoring how rapid hiring surges can outpace sustainable progress in applied quantum computing for finance.
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