Technologies
Intel Enters the Quantum Computing Horse Race With 12-Qubit Chip
But before quantum physics revolutionizes computing, Intel and rivals will have to learn how to make vastly more powerful machines.
Intel has built a quantum processor called Tunnel Falls that it will offer to research labs hoping to make the revolutionary computing technology practical.
The Tunnel Falls processor, announced Thursday, houses 12 of the fundamental data processing elements called qubits. It’s a major step in the chipmaker’s attempt to develop quantum computing hardware it hopes will eventually surpass rivals.
Intel, unlike most of its rivals, makes its qubits from individual electrons housed in computer chips that are cousins to those that power millions of PCs. The company is lagging behind. Rivals like IBM, Google, Quantinuum and IonQ have been offering quantum computers for years, but Intel believes tying its fortunes to conventional chip technology will ultimately enable faster progress.
«To me, it’s natural to use the tools already developed rather than having to develop new tools,» said Jim Clarke, director of quantum computing hardware at Intel Labs. Intel makes its own quantum computing chips at its D1 fab in Oregon.
You won’t buy your own quantum computer, but they could affect your life very directly. Among those investing in the technology are financial services companies seeking more profitable investments, materials science researchers hoping for better batteries, pharmaceutical companies trying to design better drugs and governments trying to crack adversaries’ encrypted communications.
Those challenges are out of reach of conventional computers, but quantum computing has the potential to tackle them by taking advantage of the weird physics of the ultrasmall. Today’s quantum computers aren’t generally practical, and the full promise of the technology remains years away, but physicists and engineers have made steady progress year after year.
Intel, an expert in large-scale manufacturing, hopes to help speed things along by building many quantum chips, which it calls quantum processing units, or QPUs. The University of Maryland, one of the centers benefiting from a US government program to accelerate quantum computing progress, will use Intel machines.
The quantum computing race
One notable feature of quantum computing is the tremendous variety of approaches. Intel is using electrons, storing data with a quantum mechanical property called spin that’s analogous to the two directions a top can spin. IBM and Google are using small electrical circuits of superconducting materials. IonQ and Quantinuum manipulate charged atoms stored in a trap. Other approaches involve neutral atoms and even that most fleeting of particles, the photon.
At a sufficiently small scale, quantum mechanics dominates physics and anything can become a qubit, quantum computing pioneer and MIT researcher Seth Lloyd said in an earlier interview. «It’s a question of whether you can massage them in the right way to convince them to compute.»
In other words, quantum computing isn’t a horse race like in the traditional computer chip market. It’s more like a horse pitted against a falcon, a motorcycle and an Olympic sprinter.
Intel likes its approach. Tunnel Falls is in manufacturing today, but the company very soon will «tape out» its successor, meaning the design is finished, and it’s begun designing the model after that, Clarke said. Twelve qubits is a tiny fraction of what’s needed for useful quantum computers, but Intel started with a simple approach designed for fast improvement and sustained progress over the years required to make serious quantum computers.

Intel’s Tunnel Falls quantum computer test chip perched on a fingertip
«The next big milestone is when we have a few thousand qubits,» a quantity that will let quantum computer engineers correct the frequent errors that plague qubit operations, Clarke said. «That’s probably three, four years, maybe five years away,» Clarke said. «And it’s probably the early 2030s or mid-2030s before we have a million cubits that are going to change the world.»
And Intel is engineering not just the QPUs, but the crucial data links that link each qubit to the outside world. Today’s quantum computers often look like high-tech chandeliers, with gleaming metal communication conduits looping down toward the processor, but that bulky design won’t work with thousands or millions of qubits, and Intel believes its control chips and chip interconnect technology will be necessary parts of an overall system.
Plenty of competitors
Intel is unusual in selecting photons housed in computer circuits for its quantum computing foundation. One of its biggest rivals, IBM, already offers multiple 127-qubit quantum computers for research and commercial use, with a 433-qubit machine up and running.
«We have a plan to get this out to hundreds of thousands of qubits using superconducting qubits,» said Jerry Chow, leader of IBM’s quantum computing hardware effort. IBM is working on quantum computer chips with a flock of code names — Egret, Heron, Condor, Crossbill — that are designed to prove out new technologies to reduce errors and improve the qubit-to-qubit connections that are central to the machines.
And it’s making progress. On Wednesday, it secured a coveted spot on the cover of the journal Nature for research showing its 127-qubit Eagle quantum computing chip can surpass conventional machines in simulating the materials physics that produce effects like magnetism.
Intel tried and rejected the supercomputing qubit approach, Clarke said. Its spin qubits are a million times smaller than a superconducting circuit, letting the company fit 25,000 of them on each 300mm silicon wafer that transits through its chip fabrication plant, called a fab. When Intel finds a problem building quantum chips, it figures out how to adapt the qubit to traditional chip manufacturing, not vice versa.
Disagreement with Intel’s approach
Such arguments haven’t persuaded others. Google is sticking with superconducting qubits.
«Superconducting qubits lead in critical metrics. We are confident they are the leading technology for the future of quantum supercomputers,» Google said in a statement, pointing to their processing speed and progress toward error correction to keep calculations on track longer. «We see a clear path to scale our technology to large-scale, error-corrected machines of general use.»
And IonQ Chief Executive Peter Chapman believes Intel’s approach is too inflexible for practical, large-scale quantum computers. His company is developing ion trap machines that scoot charged atoms around, letting different qubits interact with each other for computation. Fixing qubits onto the surface of a chip drastically complicates computations, he said.
«What worked in computing in the past — silicon-based processors — is not the right solution for the age of quantum,» Chapman said.
The deep disagreements about the best approach will perhaps be resolved as the machines evolve and grow larger. Intel’s plans rely on its manufacturing advantage, tapping into its experience building some of the most complicated electronics devices on the planet.
«Not everybody has a fab like this in their back pocket,» Clarke said.
Technologies
Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance
Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.
Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.
The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.
Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.
Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.
Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.
The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»
Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.
Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.
At Monday’s close, the stock had dropped 14% year-to-date.
Technologies
OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report
OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.
OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.
Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.
‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’
Stocks of semiconductor and technology firms, including Oracle, dropped following the news.
The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.
Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.
This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.
Read the full report from The Wall Street Journal.
Technologies
OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift
OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.
Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).
AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.
‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.
Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.
OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.
‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’
A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.
Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’
On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.
OpenAI and Amazon have been getting closer in other ways.
In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.
Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.
The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.
‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’
WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know
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