Why Nvidia CEO Jensen Huang’s Vision for Quantum Makes Sense

Speaking at a conference in Washington D.C., Nvidia CEO Jensen Huang said it would be “essential” to connect quantum computers to classical supercomputers. (Anna Moneymaker/Getty Images)

Key Points

• Nvidia CEO Jensen Huang this week endorsed hybrid computing, which combines traditional and quantum machines, as the future of quantum computing.
• At a D.C. event, he introduced NVQLink, a high-speed interconnect designed to link quantum processors with classical machine components like GPUs and CPUs.
• Nvidia is working to position itself as an early leader in quantum.

Nvidia CEO Jensen Huang’s latest vote of confidence in quantum computing has reassured investors in the sector—and also provided clues about how the company might fit into the ecosystem in years to come.

Speaking at a regional conference in Washington, D.C., on Tuesday, Huang touted hybrid computing—a model that combines traditional and quantum machines—as “the future of quantum computing.”

“We now realize that it’s essential for us to connect a quantum computer directly to a [graphics processing unit] supercomputer,” Huang said, describing a system in which quantum processor and graphics processing were “working side by side.”

A common misconception is that quantum computers will outright replace classical ones as scientists chase quantum advantage, or a quantum computer’s ability to perform a task impossible for a classical machine in a practical amount of time.

But that isn’t how the industry sees things unfolding. Companies like Rigetti Computing and privately-owned Quantinuum have been working to integrate their machines with classical computers, often creating powerful supercomputers to achieve a so-called hybrid model.

Huang’s insights into the future of quantum computing came just days after International Business Machines shared the results of a hybrid computing experiment with Advanced Micro Devices , one of Nvidia’s smaller peers.

In the experiment, scientists ran a computation on IBM’s quantum hardware and used classical hardware from AMD to interpret the results, showing how a “a commonly available and relatively inexpensive classical compute engine” could play a role in quantum error correction.

Even when a company has claimed to demonstrate quantum advantage, the outperformance is limited to certain tasks. Quantum and classical computers have different applications: Classical computers are cheaper, general-purpose machines, while more expensive and delicate quantum computers so far have proven their prowess at complex problems like large-scale simulations.

As they specialize in different tasks, it’s believed that they can play on each other’s strengths. AI powerhouse Nvidia has a vested interest here. Earlier this year, the company unveiled plans for a quantum computing research center, saying researchers would examine ways to link AI supercomputers with quantum computers.

Nvidia acknowledged this symbiotic relationship between the technologies on Tuesday. In a video played at the D.C. event, the company said quantum and classical machines “will work together, fused into one accelerated quantum supercomputing platform.”

Huang also unveiled NVQLink, a high-speed interconnect to link quantum processors with components of classical machines, such as GPUs and core processing units, or CPUs, along with the chips that Nvidia specializes in.

The company is clearly working to position itself as an early leader in quantum, for good reason. Bulls predict the technology will transform entire sectors from healthcare to financial services, once issues related to error correction are hammered out, sending the stocks into the stratosphere.

If quantum computers were to replace classical machines altogether, that would transform the computing ecosystem—and likely rattle Nvidia’s dominance. In a world where classical GPUs and CPUs are replaced by much more efficient quantum processors, or QPUs, Nvidia would have to shift its focus completely to stay afloat.

Lucky for Huang and his peers, that doesn’t seem likely. By becoming not just an early adopter, but an outspoken supporter of quantum, the Nvidia boss is also positioning the world’s largest company for continued success.

Shares of quantum computing companies gained following the announcement Tuesday afternoon, as Huang said 17 companies had pledged to support the technology, among them IonQ and Rigetti Computing.

Their ascent continued on Wednesday. D-Wave Quantum, IonQ, and Quantum Computing all ended the session up more than 7%, while Rigetti Computing closed up 6.3%.

The stocks were mostly rising again on Thursday, as D-Wave gained 3%, IonQ rose slightly, and Rigetti climbed 4%. Quantum Computing was down 1%.

Compare that to the reaction from the response to Nvidia’s annual event in March, when quantum stocks broadly slid during the first-ever “Quantum Day.” At the time, increased attention on names like IonQ and Rigetti meant increased scrutiny, and what appeared to be investors’ fundamental misunderstanding of quantum technology culminated in a brutal sell-off.

Seven months have passed since then, and investors seem to understand the tech better. It’s generally understood that investing in quantum isn’t a quick way to turn a profit; for now, it’s largely speculative, despite signs of progress from both established tech giants and the pure plays.

Simply put, it’s an investment for the believers—and based on his recent comments, Huang might be one of them.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com