PALO ALTO, Calif. & BURNABY, British Columbia & BOSTON - D-Wave Quantum (NASDAQ:QMCO) Inc. (NYSE: QBTS), a pioneer in quantum computing systems, software, and services, along with Zapata Computing, Inc., known as Zapata AI, have announced a strategic multi-year partnership to create commercial applications that harness both generative AI and quantum computing technologies.
The collaboration aims to address complex computational problems by developing quantum-enabled machine learning algorithms. These will utilize D-Wave's quantum technologies, which include coherent quantum annealing with over 5,000 qubits. The initial focus will be on quantum generative AI models to expedite the discovery of new molecules.
Zapata AI will gain access to D-Wave's Advantage™ annealing quantum computing systems and quantum-hybrid solvers, which is expected to speed up the development of commercial applications and provide the necessary resources to deploy these applications to Zapata's customers. The partnership also includes joint go-to-market efforts, with the exclusive availability of the commercial applications through D-Wave's Leap™ real-time quantum cloud service.
Dr. Christopher Savoie, CEO and co-founder of Zapata AI, expressed excitement about the partnership, anticipating that the combined efforts will unlock substantial value for customers. Dr. Alan Baratz, CEO of D-Wave, shared the sentiment, highlighting the potential of merging generative AI with quantum computing to address societal challenges.
Zapata AI, founded in 2017 and headquartered in Boston, Massachusetts, specializes in Generative AI software for industrial-scale problems. The company recently entered into a business combination agreement with Andretti Acquisition Corp. (NYSE: WNNR) on September 6, 2023.
D-Wave, known for supplying the first commercial quantum computers, offers technology that has been adopted by leading organizations across various industries. The company's mission is to make quantum computing practical and accessible for solving real-world problems.
The announcement contains forward-looking statements that involve risks and uncertainties. These include potential challenges in collaboration and commercial application development, as well as the risk that the anticipated value of quantum+AI development may not meet expectations.
The statements are based on information available as of the release date and may be subject to change.
InvestingPro Insights
In light of D-Wave Quantum Inc.'s (NYSE: QBTS) recent strategic partnership with Zapata Computing, Inc., it's pertinent to consider the company's financial health and market performance. According to InvestingPro, analysts are anticipating sales growth for QBTS in the current year, which could be a positive indicator for the potential of the company's quantum computing technologies and their applications in AI.
Despite the optimism, InvestingPro data shows that QBTS is trading at a high revenue valuation multiple with a Price / Book ratio of 16.73 as of the last twelve months leading up to Q3 2023. This suggests that the market has high expectations for the company's growth and future profitability. With a market capitalization of 148.73 million USD and a notable revenue increase of 14.48% in the same period, investors are likely keeping an eye on whether these financial metrics can sustain the momentum created by strategic partnerships and technological developments.
Furthermore, QBTS's recent price performance shows a strong return over the last three months, with a 30.64% increase, highlighting a potential rebound after a significant 44.97% drop in the previous six months. This volatility may be of interest to investors looking for growth opportunities, especially in the cutting-edge field of quantum computing.
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