In November 2022, OpenAI released its ChatGPT 3 large language model to the public. That release marked the dawn of the race for dominance in artificial intelligence. Today, hundreds of billions of dollars have been invested in developing more advanced LLMs. It is fair to say that AI is embedded in the economy and the promises of its integration are being realized. There is evidence that U.S. productivity growth is improving.
Now, research institutions and businesses are investing billions of dollars in quantum computing, an emerging accelerated computing technology that promises to add $850 billion in value to the economy by 2040.
Quantum computing promises to enable researchers to understand the basic structures of our world, rapidly develop new life-saving drugs, more accurately model weather patterns, improve logistical efficiency, and create nearly unbreakable encryption systems for U.S. national security networks.
AI is based on accelerated computing technology. Quantum computing also involves accelerated computing but at a pace that dwarfs the speeds of traditional computers. Quantum computers are billions of times faster than today’s supercomputers. In minutes, a quantum computer can solve problems that would take thousands of years for an accelerated computing system to solve.
The chips that form the basis for accelerated computing and AI are based on “bits,” zeros and ones that switch on and off.
But quantum computing is different. Quantum computing uses the principles of quantum mechanics to perform computations. Quantum computers operate at the subatomic level, smaller than an atom. Subatomic particles are called qubits. In the quantum world, qubits can represent both zero and one simultaneously. This is called superposition. A qubit can exist in a combination of multiple states at the same time. The amount of information a qubit system can represent grows exponentially. This enables extraordinarily large parallel processing systems. It sounds like science fiction, but it is real.
Nvidia’s accelerating computing systems also use parallel processing, but only at the speed at which zeros and ones can switch on and off. Quantum chips promise to be billions of times faster than Nvidia’s chips, but quantum computing will not compete with today’s accelerated computing technology. AI creates systems that simulate reasoning, learning from experience, and adapting to new environments. AI interfaces with human beings. By contrast, quantum computing deals with the fundamental structures of our physical world.
In February, Microsoft introduced Majorana 1, the world’s first quantum chip using the principles of quantum mechanics. With the announcement, the race for commercial development of quantum computing was on. On Thursday, at Nvidia’s GPT 2025 conference, Nvidia CEO Jensen Huang will discuss quantum computing and Nvidia’s investments in this emerging technology.
Huang’s comments will further accelerate the development of this new technology. His presentation on quantum computing will also increase investor awareness of the emerging technology. Leaders in the field of quantum computing include Alphabet-Google, Microsoft, IBM, D-Wave Quantum Systems, Quantum Computing, Rigetti Computing, and Arqit Quantum.
That said, investing in emerging quantum computing companies is very high risk. None of the companies have a working quantum computer. Even Microsoft’s Majorana 1 is a prototype. The barriers to creating a working quantum computer are formidable. Quantum computers only work in controlled environments where the temperature is near absolute zero. To develop its Majorana 1 prototype, Microsoft’s engineers moved atoms individually.
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As noted, quantum computing is based on quantum particles, which are smaller than an atom. Still, quantum computing is coming fast. Just as AI is important for the U.S. economy and its national security, quantum computing will also be critical for the economic future of the United States.
The U.S. is in a race for supremacy against China in quantum computing and AI. President Donald Trump and senior members of his administration support the U.S. technology industry. Administration policy supports the rapid advancement of AI, and it will equally support the rapid development of quantum computing.
The writer owns stocks in Nvidia.
James Rogan is a former U.S. foreign service officer who later worked in finance and law for 30 years. He writes a daily note on the markets, politics, and society. He can be reached at [email protected].