Quantinuum will go IPO Soon

2025 will be a big year for Quantum, but not for the reason you think. AQ, Silicon Photonics, and the arrival of Qubit based public companies. Honeywell in focus.

Feb 10, 2025

Breakthrough' system allows Quantum-generated data to train AI - UKTN

Good Morning,

I wanted to briefly talk about Honeywell being spun out into three separate entities. In conjunction, Quantinuum, the quantum computing subsidiary of Honeywell, is indeed gearing up for an initial public offering (IPO).

Recent reports confirm that Quantinuum is targeting a valuation of around $10 billion and aims to go public possibly as soon as early to mid-2025, contingent upon market conditions and regulatory processes

Honeywell announced plans to split into three publicly traded companies—Automation, Aerospace, and Advanced Materials—by 2026, restructuring one of the last major U.S. industrial conglomerates.

Quantinuum intends to establish cutting-edge research and development hub in New Mexico, a burgeoning epicenter for quantum technology innovation. It’s in my view, one of the key Quantum firms to watch.
Quantinuum has unveiled its groundbreaking Generative Quantum AI (Gen QAI) framework, leveraging data generated by its H2 quantum computer to tackle complex problems beyond the reach of classical computing. This innovation enables transformative applications in drug discovery, financial market modeling, and global logistics optimization, with potential to revolutionize industries such as automotive, pharmaceuticals, and materials science, according to Quantum Computing Report and others.

There is yet another firm working with Quantum and LLMs called SECQAI. They claim to have launched the first Quantum large language model (QLLM). Everyone is going all SandboxAQ on us.

👀 Quantinuum Going IPO is a Big Deal

However Quantinuum going IPO will be a major development for the Quantum startup and innovation sector. Where outside of IonQ, there aren’t many Quantum pure-play companies to invest in that are legit.

Their PR on Generative Quantum AI is also fairly interesting.

I’m bullish on Quantinuum in a sea of pretenders. Quantinuum's technology drives breakthroughs in materials discovery, cybersecurity, and next-gen quantum AI. With over 500 employees, including 370+ scientists and engineers, Quantinuum leads the quantum computing revolution across continents.

Who are They Again?

Quantinuum is a prominent player in the field of quantum computing, recognized as the world's largest integrated quantum computing company. This organization was formed through the merger of Cambridge Quantum and Honeywell Quantum Solutions in 2021. As such, it combines innovative software capabilities from Cambridge Quantum with Honeywell's advanced quantum hardware technologies.

Quantinuum focuses on developing powerful quantum computers and advanced software solutions. Its H-Series trapped-ion quantum computers represent significant technological advancements, aiming to solve complex problems that are currently beyond the capabilities of classical computers.
The company has amassed over $270 million in investments to facilitate these developments as of late 2021 and have made some tangible progress in the last few years with cutting edge research.

Honeywell Splitting is a Win for Shareholders

We’ve seen this story before and Honeywell had to do it since their stock has been flat for a long time.

The planned separations of Automation, Aerospace and Advanced Materials will create value for all stakeholders as each will benefit from:

Simplified strategic focus;
Greater financial flexibility to pursue distinct organic growth opportunities throughout investment cycles;
Improved ability to tailor capital allocation priorities in alignment with strategic focus;
Focused boards of directors and management teams with deep domain expertise; and
Distinct investment profiles that position each company to unlock greater long-term value for shareholders.

Quantinuum's trapped ion quantum computing technologies, which use light to control and manipulate qubits.

Since Honeywell has such a big stake in Quantinuum, they have more leverage in the future of Quantum computing than you would think or is visible to outsiders. Spinning it out to an IPO is the right thing to do now, just as Quantum stocks have gone all meme-stock parabolic.

Quantinuum has launched its Generative Quantum AI (Gen QAI) framework, leveraging quantum-generated data to enable advances in medicine, financial modeling and global logistics optimization.

Their Gen QAI has better branding and impact I think than the others I have seen so far.

Quantinuum's Generative Quantum AI framework is designed to harness the capabilities of quantum technology to enhance generative AI processes.
This innovative framework leverages unique quantum-generated data to solve complex problems in ways that classical computational methods cannot achieve.
This involves utilizing quantum computers to create synthetic data that can then be used to train AI models more effectively.

So I actually think they are on to something here and feels a bit more grounded in today’s AI narrative than SandboxAQ’s LQMs.

Is AQ going to actually be a thing? ⚗️

AQ stands for the convergence of AI and quantum science technologies and capabilities (my napkin definition).

SandboxAQ, Quantinuum and SECQAI are all trying to bridge the gap between Quantum technologies and Generative AI and LLMs and parallel architectures here. It’s very peculiar but deserves our attention since real Quantum computers with millions of Qubits don’t exist yet.

Meanwhile Nvidia will be able to do important R&D with a bigger budget than many of these companies to see how Quantum can truly be leveraged for AI, GPUs and the semiconductor industry including Quantum hybrid datacenters. Nvidia combines its advanced GPU technology with quantum algorithms and software development tools, such as CUDA-Q, to drive innovation in this emerging field. Through various partnerships and systems, NVIDIA is enhancing the capabilities of quantum-classical hybrid computing.

The ceiling isn’t as high in Generative AI as a stock bubble is making it out to be in my opinion, but some of these hybrid approaches could lead to new architectures and approaches. Generative AI could also introduce breakthroughs in the next decade into the slow pace of Quantum science innovation.

Activist investor Elliott Management has a $5 billion-plus stake in industrial conglomerate Honeywell.

Activist investor Elliott Management, which pushed for the break-up of Honeywell, believes the restructuring could increase Honeywell’s valuation by up to 75% over the next two years. If that’s true, the spin-off and IPO of Quantinuum could have a lot of leverage with increased acceleration of some of its best ideas and research.

An activist investor might be pushing Quantum forward in the most tangible way in years. Google’s Quantum chip Willow wasn’t a big deal in my assessment. IonQ barely makes any money with a nearly $9 Billion valuation, it makes zero sense. The hype is real, but we have to wait for bigger players to IPO to get a broader consensus on the technology.

Quantinuum is collaborating with industry partners on Generative AI projects that harness the power of quantum computing in sectors such as automotive, pharmaceuticals and materials science. For National Defense, materials science is a field which is fairly important for weapons tech, space technologies and the future in general. A lot of quantum startups and companies can benefit from the increased spending in National defense that characterizes the 2025 to 2035 period.

Industry collaborations, including projects with HPE Group in automotive and healthcare firms like Merck KGaA, are demonstrating the transformative potential of Gen QAI in areas such as battery development, drug delivery, and climate solutions. If these go well it could trickle down into more evidence of Quantinuum’s growing future as a public company, if I had to guess - a June, 2025 IPO.

My main reason for being bullish on Quantinuum is also their relative size and that they are a full-stack quantum computing company, where Quantinuum boasts a unique position in the ecosystem with increased leverage from Honeywell’s majority ownership. It’s small enough to be nimble, but big enough not to fail too easily. I can’t generally say the same about what IBM, Microsoft, Google or Amazon are doing in-house in Quantum. Microsoft’s moonshot in Quantum is interesting for sure in their approach. But is it practical anytime soon?

I’m a pragmatist and Honeywell spinning out makes sense from an investment standpoint. It also provides Quantinuum added momentum for 2025, making it a more pivotal company as a symbol for the Quantum science industry as a whole.

In addition to its ownership stake, Honeywell has invested nearly $300 million into Quantinuum as part of its strategy to capitalize the company effectively from day one. This financial backing not only highlights Honeywell's commitment but also reflects the strategic importance of quantum technology within Honeywell's portfolio.

Because Honeywell has so much skin in the game with Quantinuum, it’s not like an ordinary startup.

I’m glad to see more startups and organizations are approaching AQ more seriously, and not just SandboxAQ a moonshot spun out of Google.

Nvidia and TSMC and the future of Silicon Photonics

Let there be light? 🔆

Silicon photonics has long been touted as a solution to help data centers deal with increasing bandwidth demands and improve connectivity between servers and switches.

Quantum could be a future industry that’s impactful for Nvidia as well. We know that Nvidia and TSMC are collaborating on silicon photonics technology and have been thinking about this for some time.

The Quantum Foundry

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