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  • 🔵 The Quantum Insider Weekly | Money Flow. Earnings Show. And More News.

🔵 The Quantum Insider Weekly | Money Flow. Earnings Show. And More News.

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FROM THE EDITOR.

Sometimes we go way back to the Gold Rush to describe tech investing trends. One of the first: build the picks and shovels, and let the gold rush pay you back. But quantum may just flip that logic on its entangled head. A new Resonance market sizing report suggests that only about 6% of quantum’s projected hundreds of billions in economic impact will flow to the companies building the hardware.

The rest? It's likely to land downstream, in the hands of industries that actually use the tech — think finance, pharma, and logistics — not the ones soldering it together.

Why the upside bypass? Most customers won’t buy a quantum computer; they’ll rent one through the cloud. And when your middleman is named Amazon, Microsoft, or Google, guess who gets the margin. Add long R&D timelines, high costs, and limited early adoption, and suddenly selling the shovel starts looking a lot like digging your own hole.

That said, it’s not all doom and dilution for hardware players. They’re still laying essential groundwork — but to win, they’ll need to think beyond the box. Because in quantum, as in life, it may be less about who builds the system, and more about who figures out what to do with it.

If you would have told me six years ago that quantum would have their own little earnings season, I would have called you crazy. But here we are. And, as you can see below, the pattern continues: progress on the financial front and advances on the tech front with some cautionary losses that come with high-capital endeavors, like quantum technology.

Check out the links below for more on these financial snapshots of quantum companies.

Have a great weekend!

— Matt, Chief Content Officer at The Quantum Insider

INSIDER BRIEF.

ANALYST NOTES.

The Noteworthy & Nuanced

Apparently, the quantum entanglement we’re used to in our 4 dimensions (or is it 26?) works in all dimensions! Researchers have applied thermal effective theory to quantum information, revealing that quantum entanglement follows universal structural rules across all spacetime dimensions. The study shows that Rényi entropy (a key measure of entanglement) is governed by just a few parameters, including Casimir energy, regardless of dimensionality.

QuamCore has secured $26M in Series A funding, pushing its total investment to $35M, to build a superconducting quantum computing architecture scalable to 1 million qubits in a single cryostat. By embedding ultra-low-power control logic inside the cryostat, the company removes thermal bottlenecks and drastically reduces external cabling. This breakthrough could surpass today’s ~5,000-qubit cryostat limits and could eliminate costly multi-cryostat setups.

Amazon decided that IonQ wasn’t making enough funding/M&A headlines this year, so they disclosed a $36.7M investment in the quantum hardware firm, becoming the largest publicly known tech-company investor in the sector. Revealed in a quarterly SEC filing, the 854,207-share stake aligns with Amazon’s broader quantum strategy via AWS and Amazon Braket. — Alan Kanapin, Analyst at The Quantum Insider

The Research Rundown

Check out this week’s handpicked quantum research. These are studies headed for real-world impact: improving accuracy, reducing latency, using fewer resources, or solving problems that classical methods struggle with. These are early developments, but they hint at where quantum might earn its keep.

Want more research insights? Get them delivered straight to your inbox Monday, Wednesday, and Friday with The Daily Qubit. Subscribe below or use the link to update preferences at the end of this email. 👇️

INSIDER SPOTLIGHT: Where’s the Real Money in Quantum? Quantum Vendors to Capture Just 6% of Total Projected Impact

➡️ Quantum computing is projected to deliver $877 billion in cumulative economic impact by 2035, according to Resonance’s August 2025 Quantum Market Sizing Report.
➡️ But only about 6% of that value — roughly $55 billion — is expected to accrue to the vendors building the technology.
➡️ High R&D costs, low hardware demand, and hyperscaler-controlled QCaaS models are shifting value away from core infrastructure.
➡️ Industries like finance, logistics, and life sciences are positioned to reap outsized benefits through quantum simulation, machine learning, and optimization.

Analyst Commentary

It’s still very early in the evolution of the quantum industry, but our initial peak into the future reveals an unexpected pattern. While analogies are not perfect, quantum computing is starting to resemble a utility. And like any utility — electricity, broadband, the cloud — the big economic wins may go not to the companies that build the infrastructure, but to the ones that figure out what to do with it.

That’s one of the more surprising takeaways from Resonance’s latest Quantum Market Sizing Report, which forecasts nearly $900 billion in cumulative impact by 2035 — but only a sliver of that value returning to vendors. Roughly 6%, to be exact.

For a technology this complex and capital-intensive, that’s a harsh margin. But it reflects an emerging reality: the companies making qubits aren’t always the ones monetizing them.

There are a few reasons for this. Hardware development is still slow, expensive and fragmented. Most buyers aren’t signing direct deals; they’re accessing quantum via the cloud, often through intermediaries like AWS or Azure. Those cloud providers — not the quantum vendors — control the customer, the pricing, and sometimes the interface.

Meanwhile, value is building elsewhere. End users — particularly in finance, logistics, and life sciences — are beginning to integrate quantum into high-stakes workflows: drug discovery, fraud detection, supply chain optimization. None of them manufacture qubits. All of them are poised to benefit.

According to the report, simulation and machine learning use cases together make up nearly 70% of projected value. Optimization adds another 22%. These are problems with real-world consequences and clear ROI — the kind that attract budgets, not just curiosity.

This tilt toward applications has strategic implications. The most valuable companies in quantum may not look like quantum companies at all. They might be software startups, hybrid AI-quantum shops, or even incumbents with quantum R&D quietly humming in the background. The common thread? They translate theory into utility.

For investors, this complicates the familiar deep tech thesis. It’s not that hardware is unimportant — someone has to build the stack. But if history is any guide, much of the economic return will come from the layer that abstracts, distributes, and applies that stack to meaningful problems. Think less Bell Labs, more Salesforce.

Not everyone is buying the model. There are other examples of infrastructure plays that have paid off handsomely. The company that many consider both the brains, bones and guts behind the AI revolution — NVIDIA — is now the biggest company in the world.

And for founders and enterprise teams, it raises a tactical question: are you selling the engine, or driving the car? Because in quantum computing, the driver may end up with more leverage than the mechanic.

The full report, complete with sector breakdowns and market projections, is available now via The Quantum Insider’s Market Intelligence platform.

DATA SPOTLIGHT.

PacketLight Networks and NEC demonstrated quantum key distribution over a 400G dense wavelength division multiplexing (DWDM) network using a dual-fiber setup. They integrated NEC’s QKD system with PacketLight’s PL-4000M 600G Muxponder, achieving 100% data throughput and low latency, verified via a 100GbE tester. The QKD ran over a dedicated parallel fiber, maintaining quantum signal integrity. The result: a cost-effective, scalable quantum-safe model with zero performance tradeoffs on existing high-capacity infrastructure.

INDUSTRY HIGHLIGHTS.

⛓️ DARPA’s QuANET program has built the first operational quantum-augmented network, integrating quantum links into classical infrastructure to enable secure, resilient, high-speed communication.

🖥️ Japan has announced its first fully domestically built superconducting quantum computer at Osaka University’s QIQB, achieving complete self-reliance in both hardware and software through the open-source OQTOPUS stack.

🇦🇪 The Technology Innovation Institute in Abu Dhabi has partnered with Quantinuum to advance quantum computing research, algorithm development, and commercial applications, with access to high-fidelity systems including the upcoming Helios platform.

☁️ Amazon disclosed a $36.7 million stake in IonQ, making it the largest known tech company investor in a quantum hardware firm and signaling deeper alignment with its broader AWS quantum strategy.

🤑 IonQ exceeded Q2 revenue expectations with $20.7M, launched an aggressive M&A strategy, including a proposed $1.075B acquisition of Oxford Ionics, and strengthened its position in quantum computing and networking with a $1B equity raise and key leadership appointments.

🗾 IQM Quantum Computers and TOYO Corporation have signed a distribution agreement to bring IQM’s superconducting quantum systems to Japan, supporting the country’s goal of reaching 10 million quantum users by 2030.

🔒️ A bipartisan Senate bill, the National Quantum Cybersecurity Migration Strategy Act, proposes a coordinated federal strategy to transition critical systems to quantum-resistant encryption before future quantum computers can break today’s standards. Led by OSTP and leveraging existing interagency structures, the bill mandates pilot upgrades, defines quantum threat thresholds, and imposes oversight to ensure U.S. cybersecurity remains ahead of emerging quantum risks.

🤝 VDURA and New Mexico State University have partnered to embed post-quantum cryptographic algorithms into VDURA’s high-performance, flash-optimized file system, enabling secure, real-time encryption for AI and HPC workloads without sacrificing speed.

🌍️ The Africa Quantum Consortium (AQC) has officially launched as the first pan-African platform coordinating quantum research, education, innovation, and policy across the continent. Legally registered in South Africa, AQC has already established key programs, including the Quantum Circle for women and girls, the Africa Quantum Fund, and an upcoming State of Quantum in Africa white paper.

💰️ D-Wave reported 42% year-over-year revenue growth in Q2 2025 and launched its sixth-generation Advantage2 system alongside new quantum AI tools, while posting a steep net loss of $167.3 million driven largely by warrant-related charges.

🌐 Nokia Bell Labs is developing quantum-enabled communication networks that are intended to notably cut energy consumption, enhance cybersecurity, and support quantum computing at scale.

🪄 Researchers from Alice & Bob and Inria have developed a hardware-efficient method to prepare magic states, cutting qubit requirements to just 53 per state and achieving a 5× speedup using noise-biased cat qubits.

💰️ QuamCore has raised $26 million in Series A funding to develop a superconducting quantum architecture capable of scaling to 1 million qubits in a single cryostat. By embedding ultra-low-power control logic inside the cryostat, the company eliminates thermal bottlenecks and external cabling.

EVENTS.

Aug. 31– Sept. 5 -- IEEE Quantum Week 2025 will be held in Albuquerque, New Mexico.

Sept. 16-18 -- Quantum World Congress 2025 will be held at Capital One Hall in Greater Washington. The event is a chance for the world’s quantum ecosystem to come together and bring a quantum-ready future into focus.

Sept. 24-25 -- Q2B25 Paris at Cité des Sciences et de l’Industrie, Paris, France.

Sept. 29-Oct. 1 -- Quantum.Tech Europe is taking place in Rotterdam, Netherlands. The event will bring together the whole quantum supply chain to drive forward the commercial applications of Quantum Technologies.

Oct. 6-10 -- 8th International Conference for Young Quantum Information Scientists (YQIS25) will take place in Barcelona, Spain. YQIS is a conference series organized by and for PhD students and early-career researchers working across the broad field of quantum information.

Oct. 8 -- The Fifth Anniversary of The City Quantum & AI Summit will take place at the Mansion House in the City of London this year with the subtitle Race for Growth.

Oct. 8 -- The Quantum Insider, in partnership with the Business Development Board of Palm Beach County and Quantum Coast Capital, will host Quantum Beach 2025, an officially recognized event of the International Year of Quantum (IYQ2025). Register here.

Oct. 13-17 -- Quantum Reference Frames 2025 will bring together leading experts on quantum reference frames and the many related subjects in the first focused event in the new era of quantum frame covariance. QRF 2025 is co-funded by the Quantum Information Structure of Spacetime consortium.

Oct. 19-21 -- Q+AI will be held in New York City. This event will uncover the coming wave of Quantum + AI, include 50+ speakers, daily mentoring sessions and 16 sessions, one continuous track.

Nov. 10-12 -- European Quantum Technologies Conference 2025 will be held at Øksnehallen, Copenhagen, Denmark.

Dec. 1-4 -- QUEST-IS 2025 Quantum Engineering Sciences and Technologies for Industry and Services From Quantum Engineering to Applications for Citizens. EDF Lab, Paris-Saclay, France.