New Haven-based Quantum Circuits, a startup working to commercialize one of the first practical quantum computers, is set to be acquired by California-based D-Wave in a $550 million deal.
One of Quantum Circuits’ founders and its chief scientist, Yale professor Rob Schoelkopf, will run a research and development center for the combined company in New Haven. D-Wave has said it will grow the current Connecticut-based team.
Founded nearly a decade ago and rooted in collaborations with Yale University, Quantum Circuits has been developing quantum computing technology aimed at solving problems beyond the reach of classical computers, including applications in cybersecurity, drug discovery, artificial intelligence and defense.
The company has been competing with much larger technology firms, including IBM, Google and Amazon, in a global race to bring scalable, commercially viable quantum systems to market—an industry some analysts estimate could reach $58 billion by 2028.
The company has raised tens of millions of dollars in funding in recent years, and is one of the pillars in Connecticut’s efforts to build a quantum computing hub in the state.
“Fault-tolerant error-corrected quantum computing is within our reach, and this acquisition is expected to significantly speed up the timeline,” said Schoelkopf in a statement announcing the deal. “Quantum Circuits and D-Wave together are in a unique position to address the full spectrum of quantum computing technology.”
The purchase price consists of $300 million in D-Wave common stock and $250 million in cash. The acquisition is expected to close in late January.
“The team at QCI is amazing and well structured and so that will remain in place exactly as it is, operating in their facilities in New Haven,” said Dr. Alan Baratz, CEO of D-Wave. “Of course we will be making an investment in growing that team and growing those facilities going forward.”
D-Wave says that combining the two companies’ technologies is expected to facilitate an accelerated pathway to a commercial product launch, significantly expanding the use cases addressed by quantum computing.
The company says it plans to make an initial dual-rail system, technology that encodes information across two physical components for greater accuracy, generally available sometime this year.
“With this acquisition, we believe that D-Wave has unequivocally cemented its position as the world’s most advanced and established leader in superconducting quantum computing,” said Baratz. “Together with Quantum Circuits, we expect that D-Wave will leapfrog the industry.”
