Startup

Xanadu unveils Aurora, a modular photonic quantum computer

A Canadian startup called Xanadu has built a new quantum computer it says can be easily scaled up to achieve the computational power needed to tackle scientific challenges ranging from drug discovery to more energy-efficient machine learning.

Aurora is a “photonic” quantum computer, which means it crunches numbers using photonic qubits—information encoded in light. In practice, this means combining and recombining laser beams on multiple chips using lenses, fibers, and other optics according to an algorithm. Xanadu’s computer is designed in such a way that the answer to an algorithm it executes corresponds to the final number of photons in each laser beam. This approach differs from one used by Google and IBM, which involves encoding information in properties of superconducting circuits. 

The Next Big Quantum Computer Has Arrived

Quantinuum unveiled Helios, a quantum computer with 98 physical qubits and 48 logical error-corrected qubits, a 2:1 ratio. Helios introduces Guppy, a new programming language designed to enable algorithms to scale from Helios to future, larger machines. JPMorgan Chase is an early customer using Helios to run complex algorithms for business problems.

This 2:1 ratio is unique and impressive, said Prineha Narang, professor of physical sciences and electrical and computer engineering at UCLA, and partner at venture-capital firm DCVC. Other companies require anything from dozens to hundreds of physical qubits to create one logical qubit. But maximizing the number of error-corrected logical qubits is complex and typically involves trade-offs in other areas of performance, Narang said.

Big Player

Microsoft’s Majorana 1 chip carves new path for quantum computing

Microsoft today introduced Majorana 1, the world’s first quantum chip powered by a new Topological Core architecture that it expects will realize quantum computers capable of solving meaningful, industrial-scale problems in years, not decades.

It leverages the world’s first topoconductor, a breakthrough type of material which can observe and control Majorana particles to produce more reliable and scalable qubits, which are the building blocks for quantum computers.

IBM Delivers New Quantum Processors, Software, and Algorithm Breakthroughs on Path to Advantage and Fault Tolerance

• IBM Quantum Nighthawk: processor built for quantum advantage will deliver circuits with 30 percent more complexity
• Together with partners, IBM contributes three experiments to open, community quantum advantage tracker, with results comparable to leading classical simulation methods
• New Qiskit capabilities show 24 percent increase in accuracy with dynamic circuits and decreased cost of extracting accurate results by over 100 times with HPC-powered error mitigation.
• IBM Quantum Loon demonstrates all hardware elements of fault-tolerant quantum computing
• Efficient quantum error correction decoding achieved with 10 times speedup over current leading approach – completed one year ahead of schedule
• IBM doubles development speed with shift to 300mm wafer fabrication facility while boosting the physical complexity of quantum chips by 10 times for fault-tolerant error correction roadmap

Google’s Willow quantum chip demonstrates the first-ever algorithm to achieve verifiable quantum advantage on hardware

Google announces the first-ever verifiable quantum advantage achieved using the Quantum Echoes algorithm on the Willow quantum chip. This algorithm, published in Nature, runs 13,000 times faster than classical methods and enables precise modeling of molecular structures, paving the way for real-world applications in medicine and materials science. The breakthrough relies on low-error, high-speed hardware and introduces a “molecular ruler” technique to enhance NMR spectroscopy. This milestone moves quantum computing closer to practical, scalable solutions.

Government

Japan: Historic ¥1.05T commitment + ¥130B supplementary budget for quantum ecosystem

Quantum technology receives one of the most prominent boosts with nearly ¥130 billion ($855 million) set aside for research into systems that draw on the physics of atoms and particles to enable new forms of computing and secure communications, The Japan News reports. The package includes ¥100.4 billion ($660 million) to build research and development bases at the National Institute of Advanced Industrial Science and Technology, a national research organization with labs across the country. Another ¥3.3 billion ($22 million) would strengthen cooperation among Japan’s domestic quantum hubs, reflecting a push to coordinate work that is now scattered across universities and national laboratories. 

U.S.:DOE Quantum Leadership Act with $2.5B over 5 years

The U.S. Senate is advancing a bipartisan bill, the DOE Quantum Leadership Act of 2025, to expand quantum research with over $2.5 billion in funding over five years.
The bill aims to strengthen DOE’s quantum R&D programs through 2030, addressing supply chain challenges, workforce development, and interagency collaboration.
Industry leaders, including PsiQuantum and IBM, support the legislation, which will likely move to the Senate Committee on Energy and Natural Resources for further debate.

EU:Quantum Europe Strategy: Europe’s Five-Pillar Plan to Lead the Quantum Revolution

On July 2, 2025, the European Commission unveiled the Quantum Europe Strategy – a comprehensive roadmap to transform Europe into a “quantum industrial powerhouse” and global leader in quantum technologies by 2030. This strategy arrives at a pivotal moment: quantum computing, communication, and sensing are advancing from lab experiments to real-world applications, promising breakthroughs from ultra-secure communications to revolutionary medical imaging.

Consulting

McKinsey report: The Year of Quantum: From concept to reality in 2025

Our new research shows that the three core pillars of QT—quantum computing, quantum communication, and quantum sensing—could together generate up to $97 billion in revenue worldwide by 2035. Quantum computing will capture the bulk of that revenue, growing from $4 billion in revenue in 2024 to as much as $72 billion in 2035 (see sidebar “What is quantum technology?”). While QT will affect many industries, the chemicals, life sciences, finance, and mobility industries will see the most growth.