Shares of Google parent Alphabet rose 5% on Tuesday after it unveiled a next-generation chip that the company says helped overcome a key challenge in quantum computing.
Google on Monday unveiled a new chip called Willow, which solved in five minutes a computing problem that would take a classical computer longer than the history of the universe.
Technology companies are pursuing quantum computing in hopes of developing systems that run at much faster speeds than traditional silicon-based computers.
The building blocks of quantum computers, called “qubits,” although fast, are prone to errors, making it difficult to ensure that quantum computers are reliable and commercially viable.
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The more qubits are used in quantum computing, the more errors typically occur. But Google said Monday that it has found a way to string together qubits on the Willow chip so that error rates decrease as the number of qubits increases, adding that it can also fix errors in real time.
“While there are no current uses, (Willow) will have important implications in science, medicine and finance. “Willow reduces errors exponentially and could lead to important breakthroughs and discoveries across industries,” said Thomas Hayes, president and managing member of Great Hill Capital.
Alphabet shares were on track to record their best day since late April. The stock is up 25% year to date, as of Monday’s close.
The company’s shares are trading at a 12-month trailing price-to-earnings ratio of 19.58, compared with 32.03 for Microsoft and 36.79 for Amazon, according to data compiled by LSEG.
Earlier this year, Microsoft and quantum computing firm Quantinuum said they achieved a key step toward making quantum computers a commercial reality by making them more reliable.
With information from Reuters
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