IBM plans to invest more than $10 billion in quantum computing over the next five years as part of its effort to build the first large-scale quantum computer by 2029, Reuters reported.
The company said the computer would be capable of running complex calculations reliably and without errors, a key hurdle in turning quantum computing from a promising technology into a practical tool.
The announcement comes after the U.S. government said last week it would buy stakes worth a total of $2 billion in nine quantum computing companies. IBM is expected to receive about half of that funding to support a new venture called Anderon, which will build the first dedicated U.S. facility for manufacturing quantum computing chips.
The move is part of Washington’s broader effort to secure American leadership in the technology race against China and highlights the growing strategic importance of quantum computing.
Recent technological breakthroughs have drawn investor attention to quantum computing’s potential to accelerate tasks ranging from drug discovery to financial modeling. But significant technical obstacles remain, including high error rates that limit the technology’s practical use.
IBM said the new investment would go toward research and development, capital spending, partnerships, production expansion and mergers and acquisitions. The company will also invest $1 billion in Anderon, which will sell chips to outside customers as well
IBM said it has already deployed more than 90 quantum computing systems, more than all other companies in the industry combined.
More than 325 major public companies, startups, universities and government bodies use IBM’s quantum systems to work on challenges in chemistry, biology and materials science, according to a filing with the U.S. Securities and Exchange Commission.