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Yahoo
13-05-2025
- Business
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Rigetti CEO: Quantum computing's commercial use is several years away
Quantum computing company Rigetti Computing (RGTI) released its first quarter earnings results on Monday, which saw revenues decrease from its previous quarter as the company pursues quantum advantage in the next several years. Rigetti Computing CEO Subodh Kulkarni joins Asking for a Trend to explain the company's path towards commercial use, its research and development (R&D), and China's own investments in quantum computing. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Rigetti computing seeing a decrease in revenue for the first quarter compared to the fourth quarter. How the company estimating it is about five years away from demonstrating quantum advantage. Rigetti CEO and president Subodh Kulkarni joins us now to discuss. Subodh, it is good to see you. Let's start with this earnings report, Subodh because it's the first time we've gotten a chance to talk to you about it. It does look like the Q1 revenue misses expectations, misses consensus there. It looks also like gross margins declined from the year earlier. Walk us through the, the print though Subodh. I'm curious what you are seeing in the business. Yeah, indeed the numbers, um, sales did decline from last year and the gross margins were lighter than last year. However, we fundamentally in quantum computing are, uh, a technology development company. Uh, the technology milestones and how we are accomplishing them and the timeline for that is far more critical than sales at this point of the journey. Uh, sales are primarily coming from, uh, what we give to academic researchers or government national labs. So these are one-off contracts. They're lumpy in nature. Some quarters you will see spikes, some quarters like this one, uh, when the, when those don't happen, you do see a decline. When the numbers are small, you do get, tend to get this spiky behavior, lumpy behavior. So we try not to focus too much on sales at this point in the journey of the company. Uh, as you correctly pointed out, we are four to five years from real commercial value of quantum computing. That's where the market is really supposed to grow and be large enough where things like sales and EPS start becoming much more critical at that point. At this point, it's all about technology development and how we are getting the milestones done so that we enable this large $100 plus billion market in the future. Subodh, taking a step back for the uninitiated, help us explain in layman's terms, to the extent possible, what is the difference, Subodh, between quantum computers and supercomputers and what your competitive advantage about is in this market. Fundamentally, quantum computing is a way of doing much higher, computing than the supercomputer and consuming a lot less energy. So we can be a million or even a billion times faster than a supercomputer, uh, and consume a lot less energy. And the reason behind that is we use what is called cubits. We entangle those cubits that allows us exponentially better computing power than a classical supercomputer. So imagine the world's number one supercomputer is sitting in Oak Ridge National Lab right now. It's the size of a, a big building. Basically, it cost the US government hundreds of millions of dollars. The same work that the supercomputer is doing right now, we could do, we can do potentially with a single chip, uh, and consume a lot less energy at the same time. Now when we have powerful chips, we should be able to do, as I said, thousands and maybe millions of times more computing power than a supercomputer. So fundamentally, it's a different way of doing computing. In classical computers, you have just two states, zero and one. In quantum, we have multiple states and on top of that, we tend to couple the cubits, which gives us the exponential power of computing. So think of it as a super, supercomputer at a lot less energy consumption in a much more smaller form factor. So exciting potential, huge market opportunity, but we are still very much in the R&D stages. We need to continue to perfect the technology to enable this future. And, and Subodh, I mean obviously listen, the street's excited about this technology, and investors are excited about this technology, but in terms of when it's actually, you know, really commercially viable, you say still years away. Why years, Subodh? It gets into the nitty-gritty of where we are in quantum computing. There are things we, um, measure routinely, things like the quality of the cubits in terms of the error rates, the number of cubits, the gate speeds and gets into a lot of technical metrics. Uh, and right now they work, I mean, quantum computers work. They can do your standard computing. It's just not faster or cheaper than your regular computer. So there's really no point in using a quantum computer for practical workload today. The reason for excitement is we can extrapolate and we can see that once we are above a thousand cubits and above a fidelity level of what we call 99.9% two cubit gate fidelity and gates are fast enough and we do error corrections, we can project and see that indeed a quantum computer will be a million or a billion times faster than your fastest computer today and consume lot less energy. So it's the projections that give us the confidence that, uh, we will be able to get there. But as of today, none of us have a quantum computer that we can show a data center and say, use it, you will get this practical benefit today compared to your, uh, HPC cluster or supercomputer. Subodh, you know, there's some broader issues, concerns out there for investors, you know them well. Worries about the economy, worries about the Trump tariffs. I'm just curious, Subodh, have those impacted, affected at all, how you're leading this company right now, in terms of just decisions you want to make about, about investing, about spending, about hiring? Well, not really at this stage. Uh, since we are primarily focused on R&D, things like tariffs don't matter to us as much because most of our expenses are in the US. Most of them are salary type expenses. So, uh, tariffs fundamentally don't hit us and we are not selling many things to any foreign governments where reciprocal tariffs becomes an issue. So as of right now, tariffs is not an issue. Long term, obviously, we watch what's going to happen. If there's significant tariffs for parts that we are buying from outside the US, it will impact us to some extent. And same if there are reciprocal tariffs when we are selling quantum computers or quantum computing as a service to foreign countries, that would impact us too. So long term it does absolutely will make a difference. But as of today, while we are doing R&D, tariffs is not as big an issue. Even the economy, the macro factors, like the, the GDP or inflation, those kinds of factors that are typically very important for a traditional company with a mature business are not as important when you are doing early stage R&D work as we are doing right now in quantum computing. Subodh, you know, we talk on tariffs so we have to talk China. I am very curious to get your take on this, which is kind of the broader geopolitical competition with China Subodh, when it comes to quantum computing. Uh, China is intent on becoming a true global tech powerhouse Subodh. I mean, how does the US right now stack up? Subodh. How does it compare and contrast with China when it comes to this field, quantum computing? Quantum computing is a very high stakes area right now. It is being viewed as a critical technology by just about all the developed economies of the world. Certainly US, China included, but many Western European and Asian countries as well. And the stakes are indeed high because the company or country that owns quantum computing has a huge advantage over everyone else. Uh, one of the main reasons for that is encryption, decryption. Almost all of our information right now is encrypted with some form of RSA or AES encryption and it works because a standard computer, even a supercomputer cannot break it. With quantum computers, we have shown with models that you can relatively easily break AES or RSA encryption. So the stakes are very high. I mean, if a rogue company or a rogue country got quantum computers before we do, they could not only hack into our information, they could take our information and encrypt it with the quantum computer. So we don't even have any access to our prior information. So stakes are indeed very high. That's why governments are very much aware of it. Uh, regarding your specific question, um, we all are, very keenly looking at what countries like China are doing and, uh, China is investing extremely aggressively in quantum computing, um, and we really don't know exactly where they are. Uh, as of right now, based on publications and patent literature, we have a good sense that they are making rapid progress. Uh, we, but we don't know exactly where they are. So, US quantum computing as a field generally started in the US and Europe came along at the same time. Right now, we believe companies like us, along with IBM and Google are in the lead globally. But we have to be careful. China may be catching up, maybe very close and maybe even ahead, and we just don't know. This is an area where they are not going to openly divulge if you're ahead. If this is a critical asset, if you are indeed ahead of other countries, you are definitely not going to tell other countries that you are ahead. So it's an area of extreme concern for everyone. And that's why our government, along with other Western European governments, are taking this area very, very seriously. 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
13-05-2025
- Business
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Rigetti CEO: Quantum computing's commercial use is several years away
Quantum computing company Rigetti Computing (RGTI) released its first quarter earnings results on Monday, which saw revenues decrease from its previous quarter as the company pursues quantum advantage in the next several years. Rigetti Computing CEO Subodh Kulkarni joins Asking for a Trend to explain the company's path towards commercial use, its research and development (R&D), and China's own investments in quantum computing. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Sign in to access your portfolio
Yahoo
13-05-2025
- Business
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Why Rigetti Computing Stock Is Plummeting Today
Rigetti Computing reported a surprise EPS profit of $0.13, but this was largely due to accounting. The company's revenue came in well below Wall Street's targets. Rigetti is working on promising technology, but investors should know it's many years from maturation. 10 stocks we like better than Rigetti Computing › Shares of Rigetti Computing (NASDAQ: RGTI) are plummeting on Tuesday. The quantum computing company's stock plunged 10% as of 12:46 p.m. ET and was down as much as 12.5% earlier in the day. The steep decline comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) were up 0.8% and 1.6%, respectively. The quantum computing pioneer reported mixed Q1 2025 results on Monday after the market closed. Rigetti posted its first-quarter results on Monday, revealing earnings per share (EPS) of $0.13. For the same period last year, the company lost $0.14 per share. The shift to operating in the black was overshadowed, however, by the massive drop in sales. The company reported a top-line revenue decline of 51% year over year (YOY). The $1.5 million came in far below the expected $2.6 million. The company's CEO, Subodh Kulkarni, emphasized during Rigetti's earnings call that "quantum computing continues to be in R&D mode" and that the "lumpy" revenue growth isn't a concern. Rigetti's profitability comes with a significant asterisk, however: Its Q1 net income includes $62.1 million in "noncash gains from the change in fair value of derivative warrant and earn-out liabilities." In other words, the profitability gain has more to do with accounting than a material change in its business. Echoing Kulkarni's message, it's not surprising to see major swings in revenue and earnings with a company at this stage. That in and of itself isn't concerning. Rigetti and other quantum companies are working to develop a breakthrough technology on the bleeding edge of science. We are likely a decade or more out from true commercial application of these technologies on the scale that would justify the investment. Though many of the CEOs of these companies may have aspirations of a shorter timeline, even they admit it's not in the next couple of years. If you are an investor with a particularly high risk tolerance and the ability to wait a decade or more for your investment to pay off, Rigetti is one of the better quantum computing stocks on the market. However, I would strongly suggest spreading your investment among many quantum stocks. The technology's maturation is just too far off to be able to tell which company's approach will work. Before you buy stock in Rigetti Computing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rigetti Computing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,613!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $753,878!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Rigetti Computing Stock Is Plummeting Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
06-05-2025
- Business
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Rigetti Computing to Participate in Fireside Chat at 20th Annual Needham Technology, Media, & Consumer Conference
Rigetti Computing, Inc. BERKELEY, Calif., May 06, 2025 (GLOBE NEWSWIRE) -- Rigetti Computing, Inc. (Nasdaq: RGTI) ('Rigetti' or the 'Company'), a pioneer in full-stack quantum-classical computing, announced today that Rigetti CEO, Dr. Subodh Kulkarni, will be participating in a fireside chat at the 20th Annual Needham Technology, Media & Consumer Conference on May 9, 2025. Information for the event is as follows: Webcast registration link: Presentation date: Friday, May 9, 2025 Time: 1:30 PM ET Investors can view a live webcast of the event by visiting the 'Events' section of Rigetti's Investor Relations website at . A replay will be available at the same location for 90 days following the conclusion of the event. About Rigetti Rigetti is a pioneer in full-stack quantum computing. The Company has operated quantum computers over the cloud since 2017 and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. In 2021, Rigetti began selling on-premises quantum computing systems with qubit counts between 24 and 84 qubits, supporting national laboratories and quantum computing centers. Rigetti's 9-qubit Novera™ QPU was introduced in 2023 supporting a broader R&D community with a high-performance, on-premises QPU designed to plug into a customer's existing cryogenic and control systems. The Company's proprietary quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing. Rigetti has developed the industry's first multi-chip quantum processor for scalable quantum computing systems. The Company designs and manufactures its chips in-house at Fab-1, the industry's first dedicated and integrated quantum device manufacturing facility. Learn more at . Rigetti Computing Media Contact: press@
Yahoo
03-05-2025
- Business
- Yahoo
Rigetti Computing Closes Investment by Quanta Computer
BERKELEY, Calif., April 30, 2025 (GLOBE NEWSWIRE) -- Rigetti Computing, Inc. (Nasdaq: RGTI) ('Rigetti' or the 'Company'), a pioneer in full-stack quantum-classical computing, announced today that it has closed the previously announced investment by Quanta Computer Inc. ('Quanta', TWSE: related to their strategic collaboration agreement. In connection with the closing, Quanta purchased approximately $35 million of shares of Rigetti common stock at approximately $11.59 per share. 'We are pleased to take this next step in our strategic collaboration with Quanta,' says Dr. Subodh Kulkarni, Rigetti CEO. 'Quanta's world-leading expertise in notebook and server manufacturing paired with Rigetti as a pioneer in superconducting quantum computing will help put us at the forefront of the quantum computing industry.' About RigettiRigetti is a pioneer in full-stack quantum computing. The Company has operated quantum computers over the cloud since 2017 and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. In 2021, Rigetti began selling on-premises quantum computing systems with qubit counts between 24 and 84 qubits, supporting national laboratories and quantum computing centers. Rigetti's 9-qubit Novera QPU was introduced in 2023 supporting a broader R&D community with a high-performance, on-premises QPU designed to plug into a customer's existing cryogenic and control systems. The Company's proprietary quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing. Rigetti has developed the industry's first multi-chip quantum processor for scalable quantum computing systems. The Company designs and manufactures its chips in-house at Fab-1, the industry's first dedicated and integrated quantum device manufacturing facility. Learn more at Rigetti Media Contactpress@ Cautionary Language and Forward-Looking StatementsCertain statements in this communication may be considered 'forward-looking statements' within the meaning of the federal securities laws, including statements with respect to the Company's future success and performance, including expectations with respect to timing of the development and commercialization of superconducting quantum computing; expectations regarding the advantages and impact of the strategic collaboration agreement with Quanta on the Company's operations, technology roadmap, milestones, and the Company's position in the industry. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Company's ability to achieve milestones, technological advancements, including with respect to its technology roadmap; the ability of the Company to obtain government contracts successfully and in a timely manner and the availability of government funding; the potential of quantum computing; the success of the Company's partnerships and collaborations, including the strategic collaboration with Quanta; the Company's ability to accelerate its development of multiple generations of quantum processors; the outcome of any legal proceedings that may be instituted against the Company or others; the ability to maintain relationships with customers and suppliers and attract and retain management and key employees; costs related to operating as a public company; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the Company's estimates of expenses and profitability; the evolution of the markets in which the Company competes; the ability of the Company to implement its strategic initiatives and expansion plans; the expected use of proceeds from the Company's past and future financings or other capital; the sufficiency of the Company's cash resources; unfavorable conditions in the Company's industry, the global economy or global supply chain, including rising inflation and interest rates, deteriorating international trade relations, political turmoil, natural catastrophes, warfare and terrorist attacks; and other risks and uncertainties set forth in the section entitled 'Risk Factors' and 'Cautionary Note Regarding Forward-Looking Statements' in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements other than as required by applicable law. The Company does not give any assurance that it will achieve its in to access your portfolio
