Nvidia Is Giving Legitimacy to Quantum Computing
Introduction
We have a compelling technology story to share with you.
And now, just before going to press, this article has taken on an even more compelling urgency. Nvidia CEO Jensen Huang has issued a public statement reversing his earlier stance, now declaring that quantum computing is nearing an inflection point and may soon be applied to solve real-world problems. His words elevate the significance of Nvidia’s strategic positioning, validate the investments discussed in this piece, and reinforce the idea that quantum computing is no longer theoretical—it’s rapidly becoming operational.
In a March 2025 article published in Gilder’s Guidepost, we wrote: “Nvidia CEO Jensen Huang Wants to Buy a Quantum Computing Company — My Thinking Outside the Box: He’s Playing 4D Chess.” I proposed that Huang’s public dismissal of quantum computing in January—saying that useful systems were still “decades away”—was less about belief and more about leverage.
Within days of that statement, the sector cratered. Rigetti (RGTI) dropped 35%, Quantum Computing Inc. (QUBT) fell 32%, and D-Wave Quantum (QBTS) lost nearly 30%.
But then something changed. On March 20, Nvidia hosted its first-ever “Quantum Day” at GTC, featuring a fireside chat with leading quantum startups, and announced the formation of the NVIDIA Accelerated Quantum Research Center (NVAQC) in Boston. The move was subtle, but unmistakable: Huang wasn’t leaving quantum behind—he was walking the floor, assessing the field.
Now, multiple reports confirm that Nvidia is in advanced talks to invest in PsiQuantum, a stealthy but well-capitalized photonic quantum computing company with operations in the United States and Australia. That potential investment marks Nvidia’s first major foray into quantum hardware—and it validates the thesis I laid out back in March: Huang downplayed the field publicly to buy into it privately, and at a better price.
PsiQuantum: The Photonic Bet Behind Nvidia’s Pivot
Founded in 2016, PsiQuantum is racing to build the world’s first fault-tolerant quantum computer. It takes a fundamentally different approach from better-known players like Rigetti or IonQ. Instead of using superconducting or ion-trap qubits, PsiQuantum encodes information in photons—light particles—on silicon photonic chips manufactured using standard CMOS processes. That compatibility with traditional fabs could make PsiQuantum the most scalable architecture in the industry.
The company is currently working with the U.S. Department of Energy to build a system in Chicago, while simultaneously partnering with Australia on a parallel deployment in Brisbane. Despite raising more than $1.2 billion—including a new $750 million round reportedly led by BlackRock—PsiQuantum has not yet demonstrated a fully functioning system.
For Nvidia, the appeal is clear. PsiQuantum’s technology dovetails with its existing strength in silicon, optics, and cryogenic system design. It also fits into Nvidia’s broader roadmap for quantum-accelerated AI—where GPUs and quantum systems work together to solve complex simulation, optimization, and cryptography problems.
Nvidia’s Broader Quantum Strategy
PsiQuantum isn’t Nvidia’s only recent move. In early 2025, it also invested in SandboxAQ, a software-focused quantum company developing post-quantum cryptographic algorithms and simulation tools. That investment complements Nvidia’s growing cuQuantum platform, which enables quantum circuit simulations on classical GPUs.
Taken together, these investments suggest that Nvidia is building a hybrid stack—one that spans simulation, hardware, cryptography, and photonics. The public face of skepticism may have been a smokescreen. The real game is ecosystem positioning, and Huang is now placing his pieces.
Quantum Stocks: Corrected, Then Stabilized
As the chart below shows, quantum stocks soared in late 2024 before collapsing in early 2025 following Huang’s remarks. Since then, they’ve stabilized but remain well above their 2023 levels. IonQ, in particular, has held on to most of its gains, while D-Wave, Rigetti, and QCI trade near the midpoint between post-crash lows and last year’s highs.
Chart 1: 3-Year Price % Change for IONQ, QBTS, RGTI, QUBT (Jan 2023–May 2025)
The latest financials offer further clarity on how each company is positioned heading into the second half of 2025. Let’s take a look.
IonQ: Massive Cash Reserves
IonQ continues to demonstrate the strongest commercial traction. The company recently closed a $22 million system sale to EPB of Chattanooga, Tenneesee and reaffirmed full-year revenue guidance between $75 million and $95 million. IonQ has also acquired Lightsynq and Capella to build out its quantum networking roadmap. Although it remains unprofitable, it holds nearly $700 million in cash.
According to Table 1, IonQ posted $7.6 million in Q1 revenue, a 77% increase from a year earlier. Despite rising losses due to R&D and expansion, the company maintains the largest capital base in the sector and is aggressively investing in long-term leadership.
D-Wave: A Quiet Rebound on System Sales
D-Wave has begun to recover after posting record Q1 revenue of $15 million, thanks to its first full Advantage2 system sale. Its gross margin exceeded 93%, and its net loss fell to just $5.4 million—the smallest since going public. The company now has over $300 million in cash and continues to expand its Quantum Compute-as-a-Service platform.
As shown in Table 2, D-Wave’s year-over-year revenue increased by an estimated 369%, positioning it as the most improved player in the group from a financial performance standpoint.
Rigetti: Still on the Brink
Rigetti’s financial struggles continue. Q1 revenue declined 28% year-over-year, and the company has pulled guidance while warning of future funding uncertainty. Once a leader in superconducting qubits, Rigetti is now a possible acquisition target—especially at its current valuation under $100 million.
According to Table 3, Rigetti’s losses and cash burn have accelerated, reflecting operational pressure and limited commercial progress despite its 84-qubit Ankaa-2 release.
QCI: Capital-Rich, Revenue-Light
Quantum Computing Inc. has raised nearly $200 million across Q4 and Q1, mostly to support its photonic chip foundry and government contracts, including collaborations with NASA. Yet revenue remains minimal, aznd net losses have widened due to non-cash charges and scaling expenses.
As indicated in Table 4, QCI posted only $62,000 in Q4 revenue and a net loss of $51.2 million, but it now holds nearly $79 million in cash with additional capital commitments.
Quantum computing stocks have retraced from their late-2024 highs but remain far above 2023 levels. As the chart illustrates, IonQ is still up nearly 472% over the last three years, while QCI is up 205%, Rigetti rose 165%, and D-Wave gained 32%. Much of that momentum has stabilized since the Nvidia CEO’s early 2025 remarks that tanked the sector. But now, with Nvidia actively engaging startups like PsiQuantum and SandboxAQ, the market is reawakening.
This moment also serves as a reminder of just how influential a single CEO can be in shaping market narratives. When someone of Jensen Huang’s stature voices conviction, entire sectors can rise or fall in response. Whether through doubt or belief, Nvidia’s leadership continues to play a central role in defining the tempo of quantum’s emergence—and investors would be wise to track both the moves and the messages.