Breakthrough Trends in Quantum

Last Quarter

If you listen to Ray Wang of Constellation Research, “investors are looking foe the next thing after AI” and D-Wave’s recent $400 million capital collection is evidence of that. So is the industry creating the type pf progress needed to support such investments and expectations? Let’s take a look at the last quarter of breakthroughs.

Image source: Brian Lenahan/Grok 3.0

Breakthroughs

The quantum industry has seen significant advancements or breakthroughs spanning quantum computing, communication, and sensing creating tangible progress in quantum technology during this period.

1. Google’s Shadow Hamiltonian Simulation Breakthrough

Google Quantum AI introduced a new method called Shadow Hamiltonian Simulation, enabling efficient quantum simulation of exponentially large systems, such as free bosons and fermions. This breakthrough provides exponential speedups for studying complex quantum systems, advancing applications in physics and materials science. It enhances the ability to simulate quantum systems that are intractable for classical computers, paving the way for practical quantum advantage in scientific research and it strengthens Google’s position in quantum algorithm development.

2. Advancements in Quantum Error Correction

Multiple organizations reported progress in quantum error correction, a critical step toward fault-tolerant quantum computing. QuEra Computing and NVIDIA developed an AI-based decoder for QEC, significantly accelerating decoding speed and improving fidelity. Additionally, IBM and Microsoft reported enhanced error correction protocols, with IBM’s Condor processor achieving longer coherence times for complex computations. These advancements reduce error rates in quantum systems, bringing fault-tolerant quantum computers closer to reality. They are crucial for scaling quantum systems to handle practical applications in industries like finance and pharmaceuticals.

3. Quantum-AI Integration Progress

The integration of quantum computing with artificial intelligence (AI) accelerated, with hybrid quantum-AI systems showing promise in optimization, drug discovery, and climate modeling. Companies like Quantinuum and Microsoft advanced quantum-native AI models, such as Quixer, which runs natively on quantum hardware, enhancing computational efficiency. This convergence is expected to supercharge AI capabilities, particularly in solving complex optimization problems and improving quantum error correction schemes. It positions quantum computing as a complementary technology to AI, with potential applications in real-world scenarios emerging sooner than anticipated.

4. Quantum Communication Market Growth

Quantum communication is critical for secure data transmission, potentially revolutionizing cybersecurity. The growing market indicates increased confidence in quantum technology’s reliability for mission-critical applications. McKinsey’s Quantum Technology Monitor highlighted a surge in quantum communication advancements, with a focus on secure quantum networks. Investments in quantum communication infrastructure grew, driven by initiatives like Singapore’s $222 million investment and Japan’s $7.4 billion commitment to quantum technology, part of which targets quantum communication. China and South Africa established their own quantum-secure links. Quantropi announced that its solution is the first quantum-secure transatlantic communication vehicle from Copenhagen to Halifax.

5. Quantum App Marketplaces Emerge

In 2025, quantum app marketplaces emerged, allowing developers to publish modular quantum algorithms and solutions for integration with quantum cloud providers. These platforms enable businesses to purchase pre-built quantum optimization packages or customize workflows for specific industries. This development democratizes access to quantum computing, enabling smaller organizations to leverage quantum solutions without building their own hardware.

6. Increased Industry Adoption and Real-World Applications

Quantum computing saw broader adoption across industries, with tangible applications in 2025. For example, quantum machine learning is being used to reduce drug discovery timelines for molecular property prediction and molecular generation.. DHL and IBM piloted quantum optimization tools to improve delivery network efficiency, achieving a 10% reduction in fuel consumption. These deployments demonstrate quantum computing’s transition from theoretical to practical, delivering measurable ROI in pharmaceuticals, logistics, and energy. They signal a shift toward commercial viability, with industries like finance and healthcare leading early adoption.

7. Cryptography

Advances in cryptography can occur on both sides of the cybersecurity ledger. The Quantum Insider explains the realities of QML, QKD and quantum safe networks.

8. Government and Corporate Investments Surge

Government-backed investments in quantum technology continued to rise, with Spain committing $900 million and Japan $7.4 billion in Q1 2025, carrying momentum into Q2. Corporate investments also grew, with startups attracting about $2 billion in 2024, a trend that persisted into 2025. The Bloch Tech Hub in Chicago, backed by a $100 million partnership with IBM, Google, and the University of Chicago, advanced quantum research commercialization. As noted above, D-Wave garnered $400 million in new investments during the period. These investments fuel innovation and talent development, positioning regions like Asia and the U.S. as leaders in the quantum race. They also support the infrastructure needed for large-scale quantum deployments.

Summary

The last quarter (April–June 2025) builds on earlier 2024–2025 advancements, with many breakthroughs from late 2024 (e.g., Google’s Willow chip, Microsoft’s Majorana 1) continuing to drive progress. The quantum industry is transitioning from research to deployment, with a focus on logical qubits, error correction, and real-world applications. However, challenges like scalability, high costs, and qubit stability persist. These breakthroughs collectively indicate that quantum technology is moving closer to practical, scalable applications, with significant implications for industries and global innovation ecosystems.

Brian Lenahan is founder and chair of the Quantum Strategy Institute, author of seven Amazon published books on quantum technologies and artificial intelligence and a Substack Top 100 Rising in Technology. Brian’s focus on the practical side of technology ensures you will get the guidance and inspiration you need to gain value from quantum now and into the future. Brian does not purport to be an expert in each field or subfield for which he provides science communication.

Brian’s books are available on Amazon. Quantum Strategy for Business course is available on the QURECA platform.

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