IONQ CEO Niccolo De Massi goes one-on-one with Jim Cramer

Key Concepts:

• Quantum Computing
• Quantum Networking
• Quantum Advantage
• Quantum Supremacy
• RSA Cracker
• Logical Qubits
• Fault-Tolerant Machine
• Quantum Processing Units (QPUs)

IonQ: A Quantum Computing and Networking Company

The segment focuses on IonQ, a quantum computing company, and its potential impact on various industries. Jim Cramer interviews Niccolo De Masi, the CEO of IonQ, to understand the company's technology and its future prospects.

IonQ's Position in the Quantum Computing Landscape

De Masi positions IonQ as a leading player in both quantum computing and quantum networking, describing it as the "800-pound gorilla" in the field. He emphasizes that IonQ is not just building quantum computers but also the necessary infrastructure for a quantum internet, including nodes and repeaters for secure communication.

The Threat of Quantum Computing to RSA Encryption

A key argument is that quantum computers will soon be capable of cracking RSA encryption, a widely used security algorithm. De Masi states that IonQ is essentially racing against China to be the "RSA cracker." This capability would necessitate the adoption of quantum networking equipment to maintain secure communication in a post-RSA world.

Quantum Advantage and Partnerships with Nvidia and AWS

IonQ has demonstrated quantum advantage in partnerships with Ansys, Synopsis, Nvidia, and Amazon Web Services (AWS). Specifically, they announced a 20x speedup in computation in collaboration with Nvidia and AWS. De Masi argues that this level of speedup signifies real quantum advantage, bringing the era of quantum supremacy closer.

Applications in Pharmaceuticals and Drug Discovery

The discussion explores the potential applications of quantum computing in pharmaceuticals. IonQ is working on simulating molecules to predict and analyze them through a "quantum lens." De Masi suggests that this could lead to breakthroughs in both chronic and critical drug discovery, as IonQ's machines become capable of modeling increasingly complex molecules. They announced a protein folding partnership and success a month prior to the interview.

Nvidia's Role in Quantum Computing

Cramer brings up a conversation with Nvidia CEO Jen-Hsun Huang, who indicated that Nvidia would play a crucial role in quantum computing. De Masi explains that IonQ's recent demonstrations of quantum advantage have influenced Huang's perspective. He envisions a future where quantum processing units (QPUs), particularly IonQ's, will become more cost-effective and energy-efficient than classical computing, leading to a larger share of the total compute space.

IonQ's History and Technological Advantages

IonQ has been in development for 30 years, with its origins in research from the mid-1990s. De Masi credits IonQ's founder as the "father of quantum computing hardware." He emphasizes that IonQ was the first to demonstrate quantum computing in the lab and to commercialize it. IonQ's technology runs with less energy and at room temperature, giving it a commercial advantage.

Investment and Future Outlook

De Masi acknowledges that investing in IonQ requires a long-term mindset, as significant profitability is not expected until around 2030. However, he highlights that IonQ is achieving breakthroughs regularly, with the computational power of its machines doubling rapidly. He notes that future generations of IonQ's machines could be millions, billions, or even trillions of times more powerful than current classical computers due to the exponential scaling of logical qubits.

Notable Quotes:

• Niccolo De Masi: "We are the 800 pound gorilla of both quantum computing and quantum networking."
• Niccolo De Masi: "We are racing China... to be the RSA cracker."
• Niccolo De Masi: "The era of what's called quantum supremacy is just around the corner."

Technical Terms:

• Quantum Computing: A type of computing that uses the principles of quantum mechanics to solve complex problems that are beyond the capabilities of classical computers.
• Quantum Networking: The use of quantum mechanics to create secure communication networks.
• Quantum Advantage: The point at which a quantum computer can perform a task that no classical computer can perform in a reasonable amount of time.
• Quantum Supremacy: A related term, often used to describe the point when a quantum computer can perform a specific calculation far beyond the reach of the most powerful classical supercomputers.
• RSA Cracker: The ability to break RSA encryption, a widely used public-key cryptosystem.
• Logical Qubits: Qubits that are error-corrected, making them more stable and reliable for computation.
• Fault-Tolerant Machine: A quantum computer that can correct errors, allowing for more complex and reliable computations.
• Quantum Processing Units (QPUs): The quantum equivalent of CPUs in classical computers.

Synthesis/Conclusion:

The interview paints IonQ as a leading company in the rapidly evolving field of quantum computing. IonQ is not only developing quantum computers but also building the infrastructure for a quantum internet. The company's focus on quantum advantage, partnerships with major tech players like Nvidia and AWS, and potential applications in drug discovery position it as a significant player in the future of computing. While profitability is still some years away, IonQ's technological advancements and strategic positioning make it an exciting, albeit speculative, investment opportunity.