IBM just took a 'significant' step toward useful quantum computing
The quantum computer will reside in IBM's new quantum data center in upstate New York and is expected to perform 20,000 more operations than today's quantum computers, the company said in its announcement Tuesday.
Starling will be 'fault tolerant,' IBM said, meaning it would be able to perform quantum operations for things like drug discovery, supply chain optimization, semiconductor design, and financial risk analyses without the errors that plague quantum computers today and make them less useful than traditional computers.
The news comes a day after IBM stock hit an all-time high of $273.27 on Monday. Shares are up more than 60% over the past year, more than the S&P 500's (^GSPC) roughly 12% gain.
While IBM has been involved in the quantum computing space since 1981, Big Tech companies such as Amazon (AMZN), Google (GOOG), and Microsoft (MSFT) have been working to gain a foothold in the burgeoning market, as well as a plethora of smaller quantum companies like D-Wave (QBTS) and IonQ (IONQ).
Microsoft and Amazon unveiled new quantum computing chips in February. Google released a quantum computing chip called Willow in December, saying the technology "paves the way to a useful, large-scale quantum computer." The announcement sent shares of its parent company, Alphabet, up 5% the same day.
Once developed, useful quantum computers such as Starling would solve problems that would take 'classical' computers billions of years.
Both AI and traditional computers are 'classical' computers that rely on linear algebra, whereas quantum computers rely on quantum mechanics and advanced mathematics, making them more useful for solving certain problems in fields such as cybersecurity, cryptography, and chemistry.
IDC quantum analyst Heather West said IBM's Starling is a 'significant' development for the industry, which she expects to grow to $8.6 billion by 2028.
'We've seen these incremental steps towards being able to deliver a scaled quantum computing system,' West told Yahoo Finance in an interview. 'We're finally moving from just small steps — [a] small finding here, a small engineering breakthrough there — and now putting it all together to get this larger system, Starling.'
Unlike traditional computers that use bits or series of 1s and 0s, quantum machines use qubits. Qubits are a function of quantum mechanics and, rather than being expressed as a 1 or 0, can exist as both at the same time, allowing for far more processing capabilities. But qubits are fragile and prone to producing errors. Worse, the more qubits used in an equation, the more errors they introduce.
Quantum computers use error correction codes to detect and correct their errors.
Starling will have the ability to run large-scale quantum operations without error, IBM said, because the company has devised a new error correction code. The company says this will allow it to scale the computers significantly without making them less accurate.
Google also said it achieved this feat with its Willow chip in late 2024. Google uses an error correction code called 'surface code,' but it requires the company to use tons of qubits to perform quantum operations, taking up more physical space. IBM will use a code called qLDPC requiring its quantum computers to use fewer qubits.
'[Using qLDPC] allows error correction in a much faster, much more robust way so that you can scale the system … quite a bit better, actually, than you could before,' Gartner analyst Mark Horvath told Yahoo Finance.
'Surface code and qLDPC are kind of doing the same thing with error correction. It's just that qLDPC does it a lot more efficiently,' he explained.
'This will be a real advantage,' Horvath continued. 'Everybody else is going to have to license that technology if they want to use it or try to invent it on their own, which would be expensive."
Meanwhile, Horvath expects 'useful' quantum computers will arrive within the next five years.
Tech CEOs have previously projected longer timelines. Nvidia (NVDA) CEO Jensen Huang said in January that useful quantum computing was decades away, which sent quantum stocks tumbling. Huang later walked back his comments during Nvidia's 'Quantum Day" in March.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
Daniel Howley contributed reporting.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fast Company
14 minutes ago
- Fast Company
The voice data gold rush is on, but don't fall for fool's gold
For as long as we've imagined 'the future,' we've imagined computers that talk with humans. From the calm, ever-listening computer in Star Trek to J.A.R.V.I.S. in Iron Man, voice-enabled AI has been the centerpiece of sci-fi and a symbol of technological advancement. Well, that future is now. And voice AI is in the middle of a gold rush. Voice AI interactions have evolved from clunky text-to-speech tools with voices that sound like robots to new conversational voice AI technology that resembles human speech so closely it's eerie. We can talk to ChatGPT and get voice responses that feel thoughtful, funny, and authentic. Google's AI search can now talk to you while searching the web and answer questions like a well-briefed assistant. These voicebots don't just talk, they converse. They demonstrate that they actually understand what we're saying while closely mimicking real spoken communication with pauses, inflection, emotion, context, and tone. And this is only the beginning. Without a doubt, voice is AI's next frontier. But its progress depends on the quality and integrity of the voice data on which it's trained. The real gold? Voice data What's powering this new generation of voice AI isn't just better code—it's voice data on which voice models are trained. More specifically, it's massive datasets of high quality and diverse human voices, representing the range of human speech in all its complexity—across languages, dialects, vocabulary, patterns, emotions, inflections, and context. Now that the industry sees where AI is headed, it's understanding the mission-critical value of voice data, and everyone wants access to this data. Tech giants and startups are scrambling to collect, license, or build it from scratch. Everyone wants to create the next, most lifelike talking AI, and they need the voice data to fuel it. This is the voice data gold rush. But just like the original gold rushes of the 1800s, the current frenzy comes with risk and consequence. If you don't have permission, it's stealing I firmly believe that to build voice AI the right way, technically and ethically, the data training your voice AI models needs to satisfy three criteria. The data must be High quality: Clean, extremely high-fidelity human voice recordings that are free from background noise or distortion, represent diverse voices and speech patterns, and offering rich emotional and linguistic content. High volume: Enough data to meaningfully train a model. High integrity: Ethically-sourced with clear licenses and proper consent for use in AI training. Many existing datasets can meet one or two of these requirements. Getting data that hits all three is the hard part. Don't take shortcuts I don't hear many companies talking about how they're building AI ethically, or clearly stating the sources or permissions behind the data used to build their voice AI. Yes, they're able to move fast. Many voice AI startups go to market within months. But when they're able to produce life-like voices that quickly and with very limited capital, I can't help but wonder: Where did all their training data come from? To save time and cut costs, companies are taking shortcuts by scraping audio off the internet, relying on datasets with murky or unknown ownership, or using data that's licensed for AI training, but fails to meet the quality standards needed to train convincing voice models. This is the fool's gold of AI: data that looks shiny, but can't stand up to legal scrutiny or meet the appropriate quality standards. The reality is that voice AI is only as good as the data it's trained on. And if you're building a voice model meant to reach millions of users, the stakes are high. Your data needs to be clean, consented, licensed, and diverse. Just look at the headlines: ' AI voiceover company stole voices of actors, New York lawsuit claims.' Companies are being called out and sued for cloning and using voices without permission. When you take the unconsented route, you're not just risking a PR headache; you open the door to lawsuits, reputational damage, and most importantly, you risk a major loss in customer trust. Build AI that lasts We're entering a new era of human-to-computer interaction, one where voice is the default interface. AI that talks will soon become the standard way we shop, learn, search, work, and even forge relationships. But for that future to be truly useful, human, and trustworthy, we need to build it on the right foundation. We're still relatively early in the generative AI boom, and navigating the legal landscape around training data rights and licenses is complex. If there's one thing we know for sure, any lasting, successful AI voice product will rely on quality data obtained the right way. The gold rush is here. The smart players aren't just chasing shiny things. They're building voices that last.
Yahoo
18 minutes ago
- Yahoo
Commentary: Tariffs are denting profits, and maybe soon your portfolio
The theme of the moment in financial markets is the resilience of US stock values. President Trump is imposing billions of dollars in new import taxes on US firms, yet the S&P 500 (^GSPC) index is up 26% from its April low and fresh off several record highs. Investors who shunned US assets just a few months ago are now aggressively buying. However, numerous warning signs have emerged during the second quarter earnings season as companies outline the ways Trump's tariffs are hurting profits, disrupting operations, and forcing price hikes onto consumers. Tariffs are not hitting every company, since they mainly affect goods, and many of America's top firms are service providers. But some analysts think the negative tariff effects are widespread enough to take the wind out of stocks soon. With second quarter earnings in for about two-thirds of S&P 500 companies, Yahoo Finance's Grace O'Donnell has identified more than four dozen large firms saying tariffs are impacting their businesses in some material way. Some are able to quantify the monetary effect on earnings. Others expect tariffs to hit their finances but aren't yet sure how. And some CEOs have been blunt about price hikes heading toward consumers. Manufacturers are bearing a large portion of the tariff cost, since many rely on imported components that are now more expensive. Caterpillar (CAT), Kimberly-Clark (KMB), BMW ( Ford (F), Harley-Davidson (HOG), Hyundai (HYMTF), Tesla (TSLA), GE Aerospace (GE), 3M (MMM), and General Motors (GM) are among the companies saying tariffs reduced earnings in the second quarter. Ford, as one example, said tariffs would knock $2 billion off earnings this year. Caterpillar expects a tariff hit of at least $1.3 billion. Kimberly-Clark's tariff loss will be around $170 million. Read more: The latest news and updates on Trump's tariffs It's not just manufacturers. Companies that import products they sell to consumers are suffering too. Apple (AAPL) expects tariffs to cut earnings by nearly $2 billion for the six months through Sept. 30. Hershey (HSY) said tariffs will cost it at least $170 million this year. VF Corp., whose brands include Vans, The North Face, and Timberland, sees a $250 million hit to earnings through 2026. Some of America's biggest consumer goods producers, including Procter & Gamble (PG), Mattel (MAT), Columbia Sportswear (COLM), and L'Oreal (LOR.F), say they'll have no choice but to pass some of their higher costs onto consumers. Many executives discussing the Trump tariffs say it's too soon to assess the impact of import taxes that have only been in place a couple of months, which means a lot more bad news may be in the pipeline. The disconnect in markets right now is that tariff impacts that are causing headline damage for a lot of individual companies don't yet seem to be depressing overall earnings. Roughly 80% of companies reporting their earnings so far have beaten analyst estimates, according to FactSet. That's better than the usual beat ratio. Earnings growth has also been solid, and Wall Street forecasts for the third quarter are even better, despite the tariffs. Solid actual earnings and robust forecasts for future gains are the driving forces motivating investors to buy. Read more: 5 ways to tariff-proof your financesThe question is will it last, and there are several reasons for doubt. Oxford Economics thinks investors are too bullish now because they were too panicky in April and May, when Trump imposed dramatically high tariffs that he has since lowered. Trump's "Liberation Day" tariff announcements on April 2 triggered a big stock sell-off, which in turn prompted Trump to back down and pause some of those tariffs. The average tariff rate jumped from 2.5% before Trump took office to about 28% after "Liberation Day." Recent changes to Trump's tariff regime brought the average import tax to as low as 14%, then up to about 18%, where it is today. So, the average import tax is now lower than it was in April and May — but still considerably higher than it's been for the past 90 years. That will still sting. "Margin resilience [is] unlikely to last," Oxford economists noted in an Aug. 5 analysis. "We think margin pressures will build throughout the second half of the year as the effective tariff rate continues to move higher, businesses deplete front-run inventories, and domestic demand softens." Bloomberg recently reported that several Wall Street money managers, including Morgan Stanley, Evercore ISI, and Deutsche Bank, are warning clients that a stock pullback of 10% to 15% could be on the horizon. Trump's trade wars are the biggest concern, as the rising toll of import taxes further damages profits, raises prices, reins in spending, and depresses growth. The sharp slowdown in job growth during the past three months may be a harbinger of worse to come. The average pace of job gains from May through July was just 35,000, an 80% decline from the 2024 pace. Trump got so angry over those numbers that he fired the government economist who oversees the employment report. But the real problem is Trump's own policies, and he can't fire every CEO who needs to explain how tariffs are harming profits. Rick Newman is a senior columnist for Yahoo Finance. Follow him on Bluesky and X: @rickjnewman. Click here for political news related to business and money policies that will shape tomorrow's stock prices. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26 minutes ago
- Yahoo
Exploring Zhejiang Huangma TechnologyLtd And 2 Other Promising Asian Small Caps
In the wake of renewed tariffs and trade policy uncertainties, global markets have experienced notable fluctuations, with smaller-cap indexes like the Russell 2000 and S&P MidCap 400 facing significant declines. Amidst this volatility, investors are increasingly interested in uncovering potential opportunities within Asian small-cap stocks that may offer resilience and growth prospects. Identifying promising stocks often involves assessing their ability to navigate economic challenges while capitalizing on regional strengths—qualities that Zhejiang Huangma Technology Ltd and two other Asian small caps exhibit as they emerge as intriguing candidates for exploration. Top 10 Undiscovered Gems With Strong Fundamentals In Asia Name Debt To Equity Revenue Growth Earnings Growth Health Rating YAPP Automotive Systems 1.38% -1.99% -0.31% ★★★★★★ Lemtech Holdings 49.04% -1.33% -4.79% ★★★★★★ Nanfang Black Sesame GroupLtd 45.53% -12.49% 10.72% ★★★★★★ Ascentech K.K NA 133.18% 172.84% ★★★★★★ Shenzhen Bsc TechnologyLtd NA 16.05% 1.02% ★★★★★★ Shenzhen Zhongheng Huafa NA 1.77% 31.72% ★★★★★★ Torigoe 9.03% 4.76% 8.35% ★★★★★☆ Well Lead Medical 25.36% 7.92% 12.58% ★★★★★☆ Huang Hsiang Construction 268.99% 13.29% 10.70% ★★★★☆☆ Sinomag Technology 68.80% 16.08% 3.66% ★★★★☆☆ Click here to see the full list of 2569 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener. Let's dive into some prime choices out of from the screener. Zhejiang Huangma TechnologyLtd Simply Wall St Value Rating: ★★★★★☆ Overview: Zhejiang Huangma Technology Co., Ltd is engaged in the research, development, production, and sale of surfactants both domestically and internationally, with a market capitalization of approximately CN¥8.66 billion. Operations: Zhejiang Huangma Technology generates revenue primarily from its specialty chemicals segment, amounting to CN¥2.40 billion. Zhejiang Huangma Technology, a nimble player in the chemicals sector, has shown strong earnings growth of 23.3% over the past year, outpacing its industry peers at 4.5%. With a price-to-earnings ratio of 21x, it appears attractively valued compared to the broader CN market average of 42.4x. The company holds more cash than total debt, suggesting financial stability despite an increased debt-to-equity ratio from 3.3% to 12.1% over five years. While free cash flow remains negative, high non-cash earnings and strong profit coverage for interest payments highlight operational robustness amidst challenges. Unlock comprehensive insights into our analysis of Zhejiang Huangma TechnologyLtd stock in this health report. Evaluate Zhejiang Huangma TechnologyLtd's historical performance by accessing our past performance report. Cisen Pharmaceutical Simply Wall St Value Rating: ★★★★★★ Overview: Cisen Pharmaceutical Co., Ltd. is involved in the research, development, production, and sale of drug products both in China and internationally, with a market cap of CN¥13.60 billion. Operations: Cisen generates revenue primarily from pharmaceutical manufacturing, amounting to CN¥3.75 billion. The company's financial performance can be analyzed through its net profit margin, which provides insights into its profitability relative to total revenue. Cisen Pharmaceutical stands out with its robust financial footing, having reduced its debt-to-equity ratio from 6.5 to 0.2 over five years, indicating a strong balance sheet. The company generates positive free cash flow and holds more cash than its total debt, underscoring financial stability. Despite a negative earnings growth of 7.3% last year against the industry average of 2.6%, it maintains high-quality earnings and covers interest payments comfortably. Its price-to-earnings ratio of 27.8x is attractive compared to the CN market's 42.4x, suggesting potential value for investors in this dynamic sector. Get an in-depth perspective on Cisen Pharmaceutical's performance by reading our health report here. Explore historical data to track Cisen Pharmaceutical's performance over time in our Past section. Wuxi Longsheng TechnologyLtd Simply Wall St Value Rating: ★★★★★☆ Overview: Wuxi Longsheng Technology Co., Ltd is involved in the manufacturing of auto parts in China, with a market capitalization of CN¥9.37 billion. Operations: Wuxi Longsheng Technology Co., Ltd generates revenue primarily from the manufacturing of auto parts. The company has a market capitalization of CN¥9.37 billion. Wuxi Longsheng Technology, a notable player in the auto components sector, has shown impressive earnings growth of 44.9% over the past year, outpacing the industry average of 4.3%. The company's debt to equity ratio rose from 44.4% to 59.4% over five years, yet its net debt to equity remains satisfactory at 23.9%. With a price-to-earnings ratio of 40.7x below the CN market's average and well-covered interest payments at a multiple of 9.1 times EBIT, it seems poised for continued profitability despite recent one-off gains impacting results by CN¥49.8 million. Take a closer look at Wuxi Longsheng TechnologyLtd's potential here in our health report. Gain insights into Wuxi Longsheng TechnologyLtd's past trends and performance with our Past report. Make It Happen Take a closer look at our Asian Undiscovered Gems With Strong Fundamentals list of 2569 companies by clicking here. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors. Seeking Other Investments? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SHSE:603181 SHSE:603367 and SZSE:300680. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
