Winter Storm Blair brings cold temps, perfect for quantum computing as China's military AI systems could backfire.
Advanced Computing, AI/ML, Chips, and Extended Reality
Good morning,
The Mid-Atlantic braced for snowpocalypse, which is dumping up to 16 inches of snow on the nation’s capital—after plunging the midwest into a frozen wasteland. Those low temperatures are great for quantum computing, which still relies on near absolute zero temps for the superconducting needed. We believe that 2025 is going to bring some big changes and breakthroughs on this front. Operating temps won’t reach room-temperature but will start coming closer to a ‘normal’ temp. This will allow for a proliferation of usable QC, particularly as we have witnessed dramatic improvements in error-correction in 2024.
China is using back doors to continue gobbling up high-performance chips, even as the competition between the East and West over the chips intensifies. China will continue to seek ways of getting western semiconductors, in no small part because China’s own production methods are lower-tech resulting in more expensive chips.
Final thoughts are on China’s adoption of AI within its military. It’s widely understood that China believes empowering AI to make decisions will reduce the error injected by humans. This in itself is consistent with its ‘nanny command’ climate that seeks to centralize decision making at the Chinese Military Committee (CMC). It will be very interesting then to see if China’s approach will attempt to create a single, coherent AI decision-making system (centralized but susceptible and vulnerable) or multiple, empowered AIs (decentralized and therefore more error-prone or likely to increase internal conflicts but more resilient). Check out the Foreign Affairs article in Editor’s Picks for more discussion on the impediments to Chinese militarized AI.
Alright, enough yapping. Let’s dig in to the news.
News Headlines:
Major winter storm moves to the Mid-Atlantic dumping snow amid frigid temps (AP)
The Pentagon's Office of Strategic Capital has released its 2025 investment strategy, offering a look at its priorities for the coming year including spacecraft, microelectronics, and biochem (DN)
South Korean presidential standoff persists after the weekend (AP)
Russians in Kursk region 'shaken' as Ukraine launches new offensive (AlJ)
The U.S. wants Italy to arrest a drone parts supplier complicit in last year's Tower 22 attack that killed three Americans; Iran warns Italy not to comply (AP)
China is trying to lure Taiwanese citizens, offers Chinese IDs (FT))
Justin Trudeau resigns as Canadian PM (BBC)
Quantum Tech:
Top secret British lab develops atomic clock using quantum technology (UK)
China is catching up with America in quantum technology (TE)
Russian Quantum Center co-founder provides glimpse into Russia's QC program and goals (QI)
Actually useful quantum computers are one-step closer thanks to new silicon processor (LS)
Google Willow is an important step but there's more to do in creating quantum circuits (ZD)
'Impossible' quantum teleportation achieved on normal internet cables (EA)
Sudden transition in superconductors could shift quantum tech into high gear (QI)
AI / ML
Putin orders Russian gov't and top bank to develop AI cooperation with China (RT)
Corporate execs are being hit by AI-generated phishing scams (FT)
AI can improve quantum error correction (QI)
OpenAi is losing money on its pricey ChatGPT Pro plan: Altman (TC)
Via GenAI pilot, CDAO exposes 'biases that could impact the military's healthcare system' (DS)
Microsoft plans to invest $80B on AI-enabled data centers in 2025 (RT)
Nanotech, Nanomaterials, Chips
Quantum Motion announces partnership with semiconductor manufacturer GlobalFoundries (QI)
U.S. may unveil new rules limiting China access to AI chips before Biden goes (SCMP)
TikTok parent company ByteDance appears to be skirting U.S. restrictions to get Nvidia chips (TC)
Superfast diamond-laced computer chips now much closer to reality thanks to 'quantum breakthrough' (LS)
China's cloud giants are buying up Nvidia chips at breakneck speed (TR)
XR / AR / VR
British RAF adds augmented reality from Red6 to its Hawk jet trainers (AA)
Deal Flow:
VC
Jeff Bezos and Bill Gates-backed AI-enabled mining startup KoBold Metals raised a $537M Series C led Durable Capital Partners and T. Rowe Price at a $2.96B valuation amid race for critical resources (TC)
Swave Photonics, raised a $28.3M Series A round co-led by imec.xpand and SFPIM Relaunch to develop holographic technology for augmented reality glasses (VB)
Superconducting quantum computing startup Qolab raised $16M in a Series A round led by Octave Ventures (FSME)
Irish startup Jentic raises $4.3M in seed funding led by Elkstone to develop integration layer for communications between AI agents and other software (TFN)
PE / M&A / Exits
Nvidia completes $700M acquisition of Run:ai, a large language model orchestration and optimization platform backed by Tiger and Insight Partners (RT)
PE firm Canyon Bridge Capital Partners is seeking to sell chip designer Imagination Technologies for over $680M (BBG)
Opportunities:
DARPA is preparing to launch a new quantum sensing program (SAM)
Editor’s Picks:
Sam Bresnick explores the obstacles to China's AI power, including its 'nanny command' culture, risk aversion, and ongoing military centralization.
Lighter Side:
Keep Building,
BOF