BERKELEY, Calif. - Rigetti Computing, Inc. (NASDAQ:RGTI), a developer of quantum-classical computing systems, has introduced a new chip fabrication technique known as Alternating-Bias Assisted Annealing (ABAA), which was detailed in a recent publication in Nature Communications Materials. The company announced on Thursday that this new process allows for more precise qubit frequency targeting, leading to improved execution of 2-qubit gates and a reduction in defects for higher fidelity in quantum processors.
The innovation centers on the use of Josephson Junctions (JJs), critical components of Rigetti's superconducting qubits, which are made of two layers of superconducting metal separated by an insulating barrier. The ABAA technique involves applying alternating voltages to the barrier, enabling the precise targeting of qubit frequencies before the chip is packaged. This advancement is expected to enhance the addressability and scalability of the qubits, which are essential for large-scale quantum processing unit (QPU) production.
Rigetti's CEO, Dr. Subodh Kulkarni, emphasized the significance of the company's proprietary foundry in rapidly testing and implementing such methods to improve chip capabilities. According to Kulkarni, the ABAA technique marks a step forward in the company's quest to scale up to higher qubit count systems with greater control over qubit performance.
The company plans to implement the ABAA technique in the fabrication of chips for its current Novera QPU and the forthcoming 84-qubit Ankaa-3 system, which is expected to be deployed by the end of 2024.
Rigetti, which has been operating quantum computers over the cloud since 2017, serves various clients through its Rigetti Quantum (NASDAQ:QMCO) Cloud Services platform. The company's focus on developing scalable quantum computing systems is supported by its in-house design and manufacturing capabilities at Fab-1, the industry's first dedicated quantum device manufacturing facility.
The press release statement from Rigetti also contains forward-looking statements regarding the expected benefits and applications of the ABAA technique. These statements, while based on current estimates and assumptions, are subject to a range of uncertainties and risks that could impact the company's future performance and achievements.
In other recent news, Rigetti Computing, a forerunner in quantum computing, reported a mixed financial performance for the second quarter of 2024, while also progressing steadily with its quantum technology development. The company has announced its plans to launch its 84-qubit Ankaa-3 system by the end of 2024, aiming for over 99 percent fidelity in 2-qubit gates. Despite a slight dip in revenue and gross margins compared to the same period last year, Rigetti raised substantial funds and has maintained a robust cash position, with capital expected to last until mid-Q1 2026.
The company's Q2 2024 revenues were reported at $3.1 million, a slight decrease from $3.3 million in Q2 2023. Gross margins also saw a drop from 82% in the previous year to 64%. However, the net loss improved to $12.4 million in Q2 2024 from $17 million in Q2 2023. Rigetti successfully raised $27.8 million through its ATM program and reported $100.5 million in cash and investments.
Despite the decrease in gross margins and slight decline in revenues, Rigetti's progress with the development of the 84-qubit Ankaa-3 system and its innovative research and development efforts, such as a modular chip architecture and methods for efficiently solving complex problems, underscore its commitment to advancing quantum computing technology. These are recent developments that highlight the company's strategic initiatives and robust research developments, positioning it as a significant player in the future of the quantum computing industry.
InvestingPro Insights
As Rigetti Computing, Inc. (NASDAQ:RGTI) continues to innovate in the quantum computing space with its latest ABAA technique, investors may be eyeing the financial health and market sentiment surrounding the company. With a market capitalization of approximately $160.82 million, Rigetti's financial position reflects a challenging landscape. Notably, the company's price-to-earnings (P/E) ratio stands at -1.74, underscoring that analysts do not expect Rigetti to be profitable this year. This is further emphasized by an adjusted P/E ratio of -2.52 for the last twelve months as of Q2 2024, which aligns with an InvestingPro Tip highlighting that the company has not been profitable over the past year.
Moreover, the company's stock price has experienced significant volatility, with a one-month price total return of -29.34% and a six-month return of -43.94%, which is in line with another InvestingPro Tip indicating that the stock price movements are quite volatile. Additionally, the revenue growth for Rigetti has decreased by -12.31% over the last twelve months as of Q2 2024, possibly contributing to the recent stock price fluctuations.
Despite these financial metrics, Rigetti's liquid assets exceed its short-term obligations, which is a positive sign of the company's ability to meet its immediate financial commitments. This is a vital InvestingPro Tip, as it suggests that while the company is quickly burning through cash, it still holds more cash than debt on its balance sheet. For those interested in a deeper dive into Rigetti's financials and future outlook, there are over 12 additional InvestingPro Tips available at https://www.investing.com/pro/RGTI, offering comprehensive insights for informed investment decisions.
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