Dan Robinson reports via The Register: Quantum companies received 50 percent less venture cap funding last year as investors switched to generative AI or avoided risky bets on Silicon Valley startups. Although advances are being made in quantum computing, practical use of this technology is still years away. According to the latest State of Quantum report produced by The Quantum Insider, investment in quantum technology reached a high of $2.2 billion in 2022 as confidence (or hype) in this emerging market grows. That funding fell to about $1.2 billion last year, he said. , has partnered with quantum computing company IQM, as well as VC firms OpenOcean and Lakestar. The situation was even more dire in the US, where quantum venture capital fell by 80%, while the APAC region fell by 17% and EMEA slightly increased by 3%.
However, the report denies that a “quantum winter” has arrived, comparable to the “AI winter” when funding was scarce and little progress was made. Rather, the quantum industry continues to make progress toward useful quantum systems, albeit at a slow pace, and the decline in funding should be seen as part of broader venture capital trends, the group said. insists. “2023 has been an interesting year for quantum,” Heather West, research manager for quantum computing, infrastructure systems, platforms, and technology at IDC, told The Register. “With the growing interest in generative AI, we started to see some of the money that was invested in quantum being transferred to AI initiatives and companies. “It was seen as a new disruptive technology that could be used to great effect. Quantum, on the other hand, promises to be a disruptive technology but is still in its early stages of development,” West said. told the Register.
Gartner Research Vice President Matthew Brisse agreed. “This is because CIO priorities have shifted slightly to GenAI. If organizations were spending 10 innovation dollars on quantum, they are now spending $5. “We're looking to GenAI to deliver value to organizations faster than ever before,” he said. we. Meanwhile, U.S. venture capitalists are fighting to keep their funds from drying up, avoiding risky bets on Silicon Valley startups and turning to more established technology companies or strengthening their existing investment portfolios. The Financial Times reported that.