U.S. Air Force Research Lab Secures contract with IonQ for Quantum Solutions

IonQ received a $13.4 million contract to supply the U.S. Air Force Research Lab (AFRL

Hey Everyone,

It’s always nice to see real revenue drivers for Quantum computing startups. It certainly impacted the IONQ 0.00%↑ stock of late. So let’s try to unpack this not so insignificant PR.

It’s not a major contract, but it’s a small start. IonQ received a $13.4 million contract to supply the U.S. Air Force Research Lab (AFRL) with access to its quantum computing hardware research and quantum algorithms development. IonQ is one of the early movers in making quantum computing more accessible.

While there’s been many partnerships in 2022 announced with Quantum computing startups, the recognition that this is an extremely nascent field needs to be emphasized.

It irks me a little that Google’s SEO around this mostly just rewards PR. For example, TechCrunch usually has some analysis, unfortunately Quantum Insider does not. But PR without presenting the facts of the other side, could mislead would be investors into thinking Quantum computing is more advanced than it actually is.

Many Substacks around Quantum computing are also simply hyping the space. For the U.S. Army, $11.4 million is not a significant investment. But if I were just to read the headline, like many do, I’d not realize it.

IonQ notes the agreement marks a “commercialization milestone” and is a significant public-private partnership for quantum. Startups like Sandbox AQ already work with the U.S. Defense sector. They even have direct backing from the CIA’s Venture Capital Arm. Post Quantum cryptography indeed could be worth Billions one day, according to Bloomberg.

But we need to praise our first-movers, there is some inkling of demand in the real-world at least. In a world with more potential for geopolitical conflict, supposedly Quantum computing, systems and applications have the potential to help the U.S. Air Force protect both public and private infrastructure in the United States. Well, I think it’s debatable but an interesting customer to have.

Photo by NASA on Unsplash

As a stock I think IONQ 0.00%↑ is pretty significantly overvalued given market conditions. RGTI 0.00%↑ is in less uplifted territory and I would not touch D-Wave anytime soon. I cover stocks on my Newsletter Stock Quest, in case you are interested.