Business of Quantum Computing—Qubits to Profits

Business Decision

“So we picked quantum as an area for investment more than 10 years ago. We came to the conclusion that it's an engineering problem more than it's a science problem. The moment it's an engineering problem, now you have to ask yourself the question, can you solve the two fundamental issues that are there?

One, the error rates are really high, but so are normal computers.

Two, because quantum by its nature is operating at a quantum level, very tiny amounts of energy can cause what’s called coherence loss...”

– Arvind Krishna, CEO, IBM

(Interview with Time Magazine: “How IBM CEO Arvind Krishna Is Thinking About AI and Quantum Computing,” March 2025)

This statement reflects the mindset of a seasoned technology and business strategist. It also highlights why investment and funding have accelerated for quantum computing in recent years, despite skepticism from those who have seen earlier attempts fail.

It is common to see excitement and funding around emerging technologies, especially from venture capitalists and startup investors who are willing to take multiple bets. But when experienced enterprises such as Google, IBM, Microsoft, and governments of India, China, and the US begin structured programs, it signals that this is both a solvable and significant problem.

This commitment has already led to breakthroughs, such as Google’s new Willow Chip and Microsoft’s Majorana Chip 1 (awaiting peer review). For quantum computing to become mainstream like AI, it must reliably process thousands of qubits without error for several seconds—a goal that remains elusive.

For those unfamiliar, a qubit (quantum bit) is the quantum computing equivalent of a binary bit used in classical computing.

Misunderstood Computing: A Better Marketing Opportunity

NVIDIA CEO Jensen Huang has pointed out that one of quantum computing’s challenges is perception. It is not meant to replace classical computing but to act as a specialized tool that accelerates solutions for problems beyond the reach of binary computation.

Complex chemical simulations—such as those involved in developing fertilizers and medicines—are likely among the first major use cases. However, the industry must clearly define quantum computing’s scope to attract more targeted funding.

Like early computers of the 1940s, which were initially used mainly for military purposes before gaining commercial relevance, quantum computing needs better marketing and positioning to broaden participation and revenue opportunities. Until recently, quantum companies remained niche, confined mostly to universities and a few startups, never quite achieving the “cool factor” of other tech sectors.

A Supply Chain Challenge

Recent reports and interviews suggest that simply increasing power, cables, and raw input is neither financially nor technically viable. The industry requires continuous ecosystem-wide innovation, from upgraded materials to refreshed chip designs, much like NVIDIA’s annual design cycles.

NVIDIA’s journey is instructive—its chips have evolved from gaming to crypto to AI, supported by decades of supply chain refinement. This adaptability contributed to its meteoric rise, with its stock price increasing over a thousandfold. Quantum computing may need a similar ecosystem-wide transformation to scale.

AI as a Catalyst

AI is already playing a role in advancing quantum research, particularly in error correction and control system optimization. As AI improves, it is expected to accelerate quantum computing progress even further.

Conclusion

"In quantum mechanics... an observation here and now changes in general the ‘state’ of the observed system.”

– Niels Bohr, Danish Physicist

Quantum computing may require an entire economic cycle’s worth of transformation in supply chains and ecosystem support. Marketing, talent pipelines, and supplier incentives must evolve to meet this engineering challenge.

The current industry is valued at roughly $50–80 billion across early-stage startups. With further capital market support, supplier innovation and talent development can accelerate.

AI’s rise has shown how quickly a well-supported technology can transform industries. As the pioneers of quantum mechanics might have said—merely predicting a breakthrough changes its timeline, bringing it closer than we may think.

Watch this space closely—the potential is truly beyond imagination.