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The Star
2 days ago
- Business
- The Star
IBM aims for quantum computer in 2029, lays out road map for larger systems
A view shows the IBM Australia building in Melbourne, Australia, March 24, 2025. REUTERS/Hollie Adams/File Photo SAN FRANCISCO (Reuters) -International Business Machines on Tuesday said it plans to have a practical quantum computer by 2029, and it laid out the detailed steps the company will take to get there. Quantum computers tap into quantum mechanics to solve problems that would take classical computers thousands of years or more. But existing quantum computers must dedicate so much of their computing power to fixing errors that they are not, on net, faster than classical computers. IBM, which also said it aims to have a much larger system by 2033, plans to build the "Starling" quantum computer at a data center under construction in Poughkeepsie, New York, and said it will have about 200 logical qubits. Qubits are the fundamental unit of quantum computing, and 200 qubits would be enough to start showing advantages over classical computers. IBM is chasing quantum computing alongside other tech giants such as Microsoft, Alphabet's Google and as well as a range of startups that have raised hundreds of millions of dollars in capital. All of them are tackling the same basic problem: Qubits are fast but produce a lot of errors. Scientists can use some of a machine's qubits to correct those errors, but need to have enough left over for doing useful work. IBM changed its approach to that problem in 2019 and says it believes it has landed on a new algorithm that will drastically reduce the number of qubits needed in error correction. In an interview, Jay Gambetta, the vice president in charge of IBM's quantum initiative, said the company's researchers took a different tack than they had historically, when they would work out the scientific theory of an error-correction method and then try to build a chip to match that theory. Instead, IBM's quantum team looked at which chips were practical to build and then came up with an error-correction approach based on those chips. That has given IBM confidence to build a series of systems in between this year and 2027 that will eventually result in larger systems. "We've answered those science questions. You don't need a miracle now," Gambetta said. "Now you need a grand challenge in engineering. There's no reinvention of tools or anything like that." (Reporting by Stephen Nellis; Editing by Leslie Adler)
The Star
24-04-2025
- Business
- The Star
IBM says 15 contracts impacted by DOGE cost cuts, shares drop
FILE PHOTO: A view shows the IBM Australia building in Melbourne, Australia, March 24, 2025. REUTERS/Hollie Adams/File Photo (Reuters) -International Business Machines said 15 of its government contracts were shelved under a cost-cutting drive by the Trump administration, a setback that eclipsed its upbeat revenue forecast and dragged its shares down over 5% after hours. The federal consulting businesses of Big Blue's rivals such as Accenture have also taken a hit from belt-tightening efforts by the U.S. administration and its Department of Government Efficiency (DOGE). The impacted contracts amounted to about $100 million, which was less than 1% of the order backlog in IBM's consulting unit, finance chief James Kavanaugh told Reuters on Wednesday. Still, some analysts said the cancellations fanned uncertainty for the company at a time when U.S. tariffs cloud the global economic outlook. To bolster investor confidence, IBM broke from its long-standing practice of not issuing quarterly forecasts. It also reported better-than-expected first-quarter earnings and maintained its target of achieving at least 5% revenue growth on a constant currency basis in 2025. "We've chosen now, in light of the very unprecedented dynamic of uncertainty going on in the market, to give a second-quarter revenue guidance range," Kavanaugh said. "We felt incumbent upon ourselves to give as much transparency as possible to our investor group." IBM shares have gained 12% so far this year, outperforming the benchmark S&P 500 index, which has declined nearly 9%. The company forecast June-quarter revenue between $16.40 billion and $16.75 billion, above analysts' average estimate of $16.33 billion, according to data compiled by LSEG. In the first quarter, its revenue rose 1% to $14.5 billion. Consulting revenue fell 2% to $5.1 billion, roughly in line with estimates. Some investors may focus more on the contract cancellations, given the economic uncertainty, said Michael Ashley Schulman, chief investment officer at Running Point Capital. "In a world wobbling on policy pivots and macro murk, IBM's mostly good quarter may not be enough to assuage all the negative macro sentiment." Adjusted profit stood at $1.60 per share, compared with estimates of $1.40 per share, helped by growth in the high-margin software segment. IBM's AI Book of Business — a combination of bookings and actual sales across various products — stood at more than $6 billion inception-to-date, up about $1 billion from the previous quarter. (Reporting by Arsheeya Bajwa in Bengaluru and Juby Babu in Mexico City; Editing by Alan Barona and Devika Syamnath)
