TLDR
- Google announced its Willow quantum chip ran the first verifiable algorithm faster than supercomputers, completing tasks 13,000 times quicker
- The algorithm, called Quantum Echoes, helps understand molecular structures, magnets, and black holes
- Pure-play quantum computing stocks like IonQ, D-Wave, Rigetti, and Quantum Computing fell at least 7% after the announcement
- Willow has 105 qubits compared to IonQ’s 36 qubits in its largest processor
- Microsoft also entered quantum computing with its Majorana 1 chip featuring eight topological qubits
Google announced a breakthrough with its Willow quantum chip on Wednesday. The chip demonstrated the first algorithm to achieve verifiable quantum advantage on hardware.
The algorithm, named Quantum Echoes, runs 13,000 times faster than comparable algorithms on the world’s fastest supercomputers. This marks the first time a quantum computer has run a verifiable algorithm faster than conventional computing systems.
Quantum Echoes helps scientists learn how systems in nature are structured. These include molecules, magnets, and black holes.
Google also developed a new technique called a “molecular ruler” in a separate experiment. The ruler can measure longer distances than conventional methods used today.
This announcement follows Google’s December 2024 breakthrough when Willow completed a benchmark computation in less than five minutes. That same computation would have taken today’s fastest supercomputers 10 septillion years.
Market Reaction to Google’s Announcement
Pure-play quantum computing stocks dropped after the news. IonQ, D-Wave Quantum, Rigetti Computing, and Quantum Computing all fell at least 7% on Wednesday.
These four stocks had gained 1,600% over the past year combined. The basket reached a combined market cap of nearly $50 billion despite minimal revenue.
The market reaction differed from December 2024 when the original Willow news was announced. Those stocks rose when Google first revealed its quantum breakthrough.
Investors now appear concerned that Google’s technological lead doesn’t benefit smaller quantum companies. The sell-off suggests fears that a bubble formed around pure-play quantum stocks.
Technical Specifications
Willow has 105 qubits, a measure of quantum computing power. IonQ’s largest processor, called Forte, has 36 qubits.
IonQ and its competitors are working to develop computers with thousands of qubits. Google currently holds the technological lead in the sector.
Willow’s design addresses a key challenge in quantum computing. The chip reduces error rates as it scales qubits higher.
Microsoft’s Entry Into Quantum Computing
Microsoft unveiled its first quantum computing chip in February 2025. The Majorana 1 chip uses eight topological qubits.
The chip combines indium arsenide, a semiconductor, and aluminum, a superconductor. Researchers praised this approach for preventing interference from noise and errors.
Microsoft said the chip is built to eventually fit 1 million qubits. This differs from gate-based approaches used by other companies.
Investment Landscape
Google and Microsoft represent safer quantum computing investments than pure-play stocks. Both companies have diverse revenue streams beyond quantum research.
Alphabet has a market cap of around $3 trillion. Microsoft maintains one of the highest bond ratings among corporations.
The pure-play quantum stocks remain high-risk investments. They lack material revenue and depend entirely on quantum computing commercialization.
Google continues funding quantum research through its profitable core businesses. These include search, YouTube, Google Cloud, and the Waymo autonomous driving business.
Microsoft’s other divisions include cloud computing, gaming, social media, and office tools. The company is positioned to benefit from artificial intelligence advancements.
Google’s recent demonstration showed Willow’s ability to detail molecular structures. The task could prove useful for discoveries in the medical field.
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