A quantum cold war is intensifying as nations vie for a technological edge, potentially revolutionizing industries and the global chip race. Quantum computers, capable of performing calculations in seconds that would take classical supercomputers septillions of years, exemplify this transformative potential. This technological leap opens up possibilities such as personalized medicine tailoring treatments to your unique genetic makeup, and financial fraud being detected and prevented in real-time. Climate change models could predict and mitigate disasters with unprecedented accuracy, while artificial intelligence (AI) achieves breakthroughs in learning and decision-making. Physical AI systems could seamlessly integrate with the physical world, leading to the advent of artificial general intelligence (AGI) and artificial super intelligence (ASI), where machines surpass human intelligence in every domain. In this world, nations and corporations race to lead in quantum technology, with the stakes higher than ever, impacting global security and economic power. This technological race is not just about economic dominance but also about redefining military strategies and capabilities in the 21st century.

In 2025, advancements in Quantum Error Correction (QEC) and diamond-based quantum systems have propelled quantum computing into the spotlight.[1] The race for quantum supremacy is not just about technological advancement but also about securing a dominant position in the future global landscape. The global quantum computing market, valued at US$1.13 billion in 2024, is projected to reach US$18.12 billion by 2035, growing at a staggering CAGR of 28.7%.[2]  In contrast, the traditional semiconductor market, valued at US$627 billion in 2024, is expected to grow to US$697 billion by 2025.[3] Despite the semiconductor market’s larger share and rapid growth, quantum computing, with global investments exceeding US$10 billion globally, is set to revolutionize industries from cybersecurity to pharmaceuticals, energy, and artificial intelligence. [4]^{, [5]}

What is Quantum Computing?

Quantum computing leverages the principles of quantum mechanics that is revolutionizing information processing. Unlike classical computers that use bits representing either 0 or 1, quantum computers use qubits. Qubits can represent both 0 and 1 simultaneously, a phenomenon known as superposition. Additionally, qubits can be “entangled” with each other, which means the state of one qubit can depend on the state of another, regardless of the distance between them. This interconnectedness allows quantum computers to perform complex calculations at unprecedented speeds, tackling problems that are currently unsolvable by classical computers. This breakthrough holds the potential to revolutionize entire industries, unlocking unprecedented solutions to complex problems and driving a new era of technological advancement.

A groundbreaking advancement making quantum computing realistic is Quantum Error Correction (QEC). QEC protects quantum information from errors caused by interference, such as electromagnetic fields or temperature fluctuations, and noise from hardware imperfections. QEC works by encoding quantum information across multiple physical qubits, allowing errors to be detected and corrected without collapsing the quantum state. This process is crucial for maintaining the stability and accuracy of quantum computations over extended periods. Researchers at institutions like Stanford University and companies such as Google and IBM have integrated QEC into their quantum systems, significantly reducing error rates and enhancing computational reliability. This dramatic shift underscores the transformative impact of QEC, paving the way for quantum computers to solve problems that are currently intractable for classical systems.

Quantum computing infrastructure also differs significantly from classical computing. Quantum computers require extremely low temperatures to operate, often near absolute zero (-273.15°C). One of the challenges here is to maintain qubit coherence and reduce noise, requiring sophisticated cryogenic cooling systems. Quantum systems are also highly sensitive to environmental factors such as vibration and electromagnetic interference, requiring specialized facilities with vibration isolation and shielding. These unique requirements present significant challenges but are essential for the practical implementation of quantum computing.

Figure 1: Classical computing Vs Quantum Computing

Source: The Author

Quantum Computing’s Impact on Industries

AI and Machine Learning: Quantum computing could significantly boost the capabilities of AI and machine learning (ML) by processing more accurate predictions, better decision-making, and advancing beyond the reach of today’s narrow AI. For example, the integration of Physical AI—where AI systems interact with the physical world—could lead to dramatic advancements in robotics, smart materials, and autonomous vehicles.

Cybersecurity: Quantum computing poses a significant threat to traditional encryption methods, such as Rivest-Shamir-Adleman (RSA) and Elliptic Curve Cryptography (ECC), which are foundational to current cybersecurity practices. Quantum computers can solve complex mathematical problems exponentially faster than classical computers, making it possible to break these cryptographic codes. This vulnerability necessitates the development of quantum-resistant cryptographic techniques, such as post-quantum cryptography (PQC) and quantum key distribution (QKD), to safeguard sensitive data. The urgency for adopting these new standards is underscored by the potential for quantum computing attacks to compromise digital security infrastructures worldwide. The U.S. National Institute of Standards and Technology (NIST) has initiated a standardization process for PQC algorithms, highlighting the critical need for transitioning to quantum-safe cryptographic protocols.[6]

Pharmaceuticals: The pharmaceutical industry stands to benefit immensely from quantum computing’s ability to simulate molecular interactions with unprecedented precision. Traditional methods of drug discovery are time-consuming and costly, often taking years and billions of dollars to bring a new drug to market. Quantum computing could model the behavior of molecules at the quantum level, allowing researchers to identify promising compounds more quickly and accurately. This capability could reduce drug discovery times by up to 70%, accelerating the development of new treatments and personalized medicine.[7] As quantum technology advances, it promises to revolutionize the pharmaceutical R&D pipeline, leading to more effective and affordable healthcare solutions.

Financial Services: Quantum computing is poised to transform financial services by optimizing trading strategies, risk management, and fraud detection. Quantum algorithms could enhance portfolio optimization by evaluating numerous potential outcomes simultaneously, leading to better investment strategies. Additionally, quantum technology could improve fraud detection by identifying patterns and anomalies in real time, reducing financial losses and enhancing security.

Energy and Sustainability: Quantum computing holds the promise of revolutionizing the energy sector by enhancing the modeling of chemical reactions and materials. This capability could lead to the development of more efficient energy storage systems, such as advanced batteries and solar cells. By simulating complex molecular structures, quantum computers could identify new materials with superior properties for energy storage and conversion, potentially accelerating the transition to renewable energy sources and helping combat climate change.

The Quantum Chip Race: A Global Push for Dominance

In the high-stakes race for quantum supremacy, nations and corporations are vying for a technological edge that could redefine global security and economic power. This competition is driven by both private companies, such as Google Quantum AI, IBM Quantum, D-Wave, Rigetti Computing, and IonQ, and significant public investments. Governments worldwide are pouring billions into quantum research and development, recognizing the strategic importance of this technology. The U.S., for instance, has enacted the National Quantum Initiative Act, while China leads with the world’s largest quantum communication network. Given the immense costs and the high stakes involved, this concerted effort is becoming crucial for nations aiming to stay ahead in the global quantum race, effectively creating a “quantum cold war” where technological dominance could shift the balance of power.

Global Quantum Investments and Initiatives

• United States: The U.S. has been a pioneer in quantum research, with substantial investments from both the government and private sector. The National Quantum Initiative Act and significant funding from agencies like the National Science Foundation (NSF) and the Department of Energy (DOE) underscore the country’s commitment to leading in quantum technology.[8]
• China: China has invested heavily in quantum research, aiming to achieve quantum supremacy and secure communications. The country boasts the world’s largest quantum communication network and has published more quantum-related research papers annually than any other nation since 2022.[9]
• UK: The United Kingdom has launched the National Quantum Technologies Programme, investing heavily in quantum research and development. The UK government has committed £1 billion to quantum technologies over the next decade, aiming to position the country as a global leader in this field.[10]
• Germany: Germany has established itself as a leader with initiatives like the €2 billion quantum computing program and the Fraunhofer Institute for Applied and Integrated Security. The German government has also invested in the development of quantum computing hardware and software, fostering a strong ecosystem of startups and SMEs.[11]
• Middle East and Turkey: The UAE has established the Quantum Research Centre, focusing on quantum cryptography and computing. Saudi Arabia’s Vision 2030 includes initiatives to develop quantum technologies, positioning the country as a future leader in this field. Qatar has launched the Qatar Centre for Quantum Computing (QC2), aiming to advance both theoretical and experimental research in quantum communication, computing, and sensing.[12] Turkey, a leader in the defense industry, launched its first quantum computer, “Quant”, and unveiled plans to establish a superconducting chip production facility.[13]^{, [14]} These efforts are part of a broader strategy to harness quantum technology’s transformative power to revolutionize their economies and enhance national security.

The Quantum Divide: Bridging the Global Gap

Can the promise of quantum computing be realized without widening the global digital divide? While quantum technology holds transformative potential, its high infrastructure costs risk deepening socio-economic inequalities. Only a few wealthy nations and corporations can afford the substantial investment required for quantum research, development, and maintenance. This concentration of technological power could leave developing nations further behind, exacerbating disparities in access to advanced healthcare, secure communications, and economic opportunities. To mitigate these risks, it is crucial to promote inclusive policies and foster international collaborations that ensure equitable access to quantum technologies and their benefits.

Pioneering Breakthroughs: Case Studies in Quantum Computing

As nations and corporations push the boundaries of quantum technology, several groundbreaking advancements and applications have emerged.

Microsoft’s Majorana 1 Quantum Processor: Microsoft has announced the development of the Majorana particle computer, which leverages Majorana fermions to create more stable qubits. This innovative approach aims to overcome significant challenges in quantum error correction and coherence. The Majorana particle computer is designed to be scalable to a million qubits, significantly enhancing its potential computational power and reliability. This development is part of Microsoft’s broader roadmap to achieving fault-tolerant quantum computing. The announcement highlights the creation of a new class of materials called “topoconductors”, which enable the control of Majorana particles, leading to more stable and reliable qubits. This positions Microsoft as a notable player in the quantum race, contributing to the advancement of quantum computing capabilities worldwide.

IBM’s 433-Qubit Processor: IBM’s development of the 433-qubit Osprey processor, unveiled in 2022, marked a significant milestone in quantum computing. This processor more than tripled the qubit count of its predecessor, the 127-qubit Eagle.[15] In late 2024, IBM announced the successful demonstration of the 1,121-qubit Condor processor, which represents a substantial leap in computational power.[16] The Condor processor aims to achieve fault-tolerant quantum computing by 2030, positioning IBM at the forefront of the quantum race.[17] These advancements enable complex problem-solving capabilities that classical computers cannot achieve, paving the way for breakthroughs in various industries.

Google’s Quantum Supremacy: Google’s demonstration of quantum supremacy with its 72-qubit Sycamore processor in 2019 was a landmark achievement. Building on this, Google introduced the Willow processor in 2024, featuring 105 qubits.[18] The Willow processor achieved a significant breakthrough in quantum error correction, reducing errors exponentially as it scales up.[19] It performed a benchmark computation in under five minutes, a task that would take today’s fastest supercomputers approximately 10 septillion years.[20]

China’s 504-Qubit Xiaohong Chip: China has made significant strides in quantum computing with the development of the 504-qubit Xiaohong chip.[21] This chip powers the Tianyan-504 superconducting quantum computer, which rivals international platforms like IBM and is designed to advance the infrastructure for large-scale quantum systems, supporting advanced research and applications.[22] This development positions China as a key player in the global quantum race, contributing to the advancement of quantum computing capabilities worldwide.

UAE’s Superconducting Qubit: The UAE’s Technology Innovation Institute (TII) achieved a significant breakthrough by fabricating the first superconducting qubit in the MENA region in 2023. In collaboration with SpinQ, TII integrated superconducting quantum processing units (QPUs) into its quantum research framework, addressing key technical challenges and advancing quantum computing research in the region.[23] This milestone not only enhances the UAE’s strategic autonomy in quantum technology but also positions it as a hub for future quantum research and innovation.[24]

Figure 2: Quantum computing processors [25]^{, [26], [27], [28]}

Processor Showdown: Classical vs. Quantum 

As quantum computing advances, understanding the hardware that drives these innovations becomes crucial. Here is a concise comparison between classical bit processors, industrial-scale supercomputers, and cutting-edge quantum qubit processors.

Table 1: Comparison between Home Computer, Classical Supercomputer and Quantum Computer

Source: The Author

Challenges and Future Prospects

Quantum computing, despite its remarkable advancements, faces significant technical hurdles. Scaling quantum systems remains a primary challenge, as maintaining qubit coherence becomes exponentially more difficult with an increasing number of qubits. This sensitivity to environmental disturbances necessitates sophisticated error correction techniques, which are still in development. For instance, Google’s Willow processor has made strides in quantum error correction, but achieving fault-tolerant quantum computing remains technically challenging. Additionally, the development of reliable quantum hardware is formidable, as current quantum computers require extremely low temperatures, often near absolute zero, to maintain qubit coherence. This needs advanced cryogenic cooling systems that are both expensive and complex. Furthermore, the control electronics for quantum systems must be highly precise, further complicating hardware development. Companies like IBM and Google are investing heavily in overcoming these challenges, but practical, large-scale quantum computers are still years away.

As quantum technology continues to evolve, its integration with classical systems will redefine industries and drive substantial investments from tech giants and governments. The journey to practical quantum computing is fraught with challenges, but the potential rewards make it a pursuit worth undertaking. Volkswagen has successfully used quantum computing to optimize traffic flow in cities, while financial institutions like JPMorgan Chase have demonstrated its effectiveness in portfolio optimization and risk analysis.[32]^,[33] Additionally, researchers have leveraged quantum computers to simulate the behavior of complex materials, leading to advancements in battery and superconductor technologies.[34] These real-world applications underscore the transformative potential of quantum computing, proving that it is not just a theoretical concept but a practical tool already making significant strides. As Carl Sagan wisely noted, “Somewhere, something incredible is waiting to be known”. This quote serves as a reminder of the boundless potential that lies ahead. It is imperative that we navigate this quantum revolution with both innovation and wisdom, ensuring that its benefits are shared equitably across the globe.

Endnotes

[1] Gary Fowler, “Which Industries Will Be Most Impacted By Quantum Computing?,” Forbes, January 11, 2021, https://www.forbes.com/councils/forbesbusinessdevelopmentcouncil/2021/01/11/which-industries-will-be-most-impacted-by-quantum-computing/

[2] “Quantum Computing Market By Offering,” Metatech Insights, December 2024, https://www.metatechinsights.com/industry-insights/quantum-computing-market-1525.

[3] “WSTS Semiconductor Market Forecast Fall 2024,” World Semiconductor Trade Statistics, December 3, 2024, https://www.wsts.org/76/103/WSTS-Semiconductor-Market-Forecast-Fall-2024.

[4] Tess Skyrme and Noah El Alami, “Quantum Computing Market 2025-2045: Technology, Trends, Players, Forecasts,” IDTechEx, November 21, 2024, https://www.idtechex.com/en/research-report/quantum-computing-market-2025-2045-technology-trends-players-forecasts/1053#:~:text=The%20quantum%20computing%20market%20is%20forecast%20to%20surpass%20US%2410,number%2C%20coherence%20time%20and%20fidelity.

[5] R. Whitney Johnson and Kamyar Maserrat, “Quantum Computing’s Transcendence: Impacts on Industry,” Foley & Lardner LLP, November 4, 2024, https://www.foley.com/insights/publications/2024/11/quantum-computing-transcendence-impact/.

[6] “NIST Releases First 3 Finalized Post-Quantum Encryption Standards,” NIST, August 13, 2024, https://www.nist.gov/news-events/news/2024/08/nist-releases-first-3-finalized-post-quantum-encryption-standards.

[7]  J. Galatsanos, “Re-imagining Drug Discovery with Quantum Computing: A Framework and Critical Benchmark Analysis for achieving Quantum Economic Advantage,” 2024, chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://dspace.mit.edu/bitstream/handle/1721.1/156006/galatsanos-galatsan-sfmba-sloan-2024-thesis.pdf?sequence=1

[8]  Edward Parker, Richard Silberglitt, Daniel Gonzales, Natalia Henriquez Sanchez, Justin W. Lee, Lindsay Rand, Jon Schmid, Peter Dortmans, and Christopher A. Eusebi, “An Assessment of U.S.-Allied Nations’ Industrial Bases in Quantum Technology,” RAND, November 16, 2023, https://www.rand.org/pubs/research_reports/RRA2055-1.html.

[9] Antonia Hmaidi and Jeroen Groenewegen-Lau, “China’s long view on quantum tech has the US and EU playing catch-up,” MERICS, December 14, 2024.; Matt Swayne, “China Introduces 504-Qubit Superconducting Chip,” Quantum Insider, December 6, 2024, https://thequantuminsider.com/2024/12/06/china-introduces-504-qubit-superconducting-chip/.

[10] Nigel Howard, Matthew Shapanka, Adrian Lev, and Tamzin Bond, “Quantum Computing: Developments in the UK and US,” Covington, August 9, 2024, https://www.insideglobaltech.com/2024/08/09/quantum-computing-developments-in-the-uk-and-us/

[11] James Dargan, “A Brief Overview of Quantum Computing in Germany,” Quantum Insider, April 11, 2023, https://thequantuminsider.com/2023/04/11/a-brief-overview-of-quantum-computing-in-germany/.

[12] Hamad Bin Khalifa University, “Qatar Center for Quantum Computing (QC2),” College of Science and Engineering, 2025, https://www.hbku.edu.qa/en/cse/qc2.

[13] Cierra Choucair, “Turkey Announces First Quantum Computer to be Unveiled at TOBB University of Economics and Technology,” Quantum Insider, November 21, 2024, https://thequantuminsider.com/2024/11/21/turkey-announces-first-quantum-computer-to-be-unveiled-at-tobb-university-of-economics-and-technology/.

[14] Zafer Fatih Beyaz, “Türkiye eyes advances in quantum computing with plans for superconducting chip production,” Anadolu Ajansı, December 19, 2024, https://www.aa.com.tr/en/science-technology/turkiye-eyes-advances-in-quantum-computing-with-plans-for-superconducting-chip-production/3428325.

[15] Hugh Collins, “IBM Unveils 400 Qubit-Plus Quantum Processor and Next-Generation IBM Quantum System Two,” IBM, November 9, 2022, https://newsroom.ibm.com/2022-11-09-IBM-Unveils-400-Qubit-Plus-Quantum-Processor-and-Next-Generation-IBM-Quantum-System-Two.

[16] Charles Q. Choi, “IBM Unveils 433-Qubit Osprey Chip Next year entanglement hits the kilo-scale with Big Blue’s 1,121-qubit Condor,” IEEE Spectrum, November 9, 2022, https://spectrum.ieee.org/ibm-quantum-computer-osprey.

[17] Ibid.

[18] Hartmut Neven, “Meet Willow, our state-of-the-art quantum chip,” (blog) Google, December 9, 2024, https://blog.google/technology/research/google-willow-quantum-chip/.

[19] Ibid.

[20] Ibid.

[21] Anton Shilov, “China’s 504-qubit quantum computer chip marks a new domestic record — will be globally available via the cloud,” tom’s Hardware, December 10, 2024, https://www.tomshardware.com/tech-industry/quantum-computing/chinas-504-qubit-quantum-computer-chip-marks-a-new-domestic-record-will-be-globally-available-via-the-cloud.

[22] Swayne, “China Introduces 504-Qubit Superconducting Chip.”

[23] “SpinQ Powers UAE’s TII with Cutting-Edge Superconducting QPU Solutions for Advanced Quantum Computing Research,” Spinq, December 9, 2024, https://www.spinquanta.com/newsDetail/c98251f3-cb11-41ec-b544-83b9698b9d03.

[24] Cierra Choucair, “SpinQ and TII Collaborate to Address Quantum Hardware Challenges and Advance UAE’s Research Framework,” Quantum Insider, December 9, 2024, https://thequantuminsider.com/2024/12/09/spinq-and-tii-collaborate-to-address-quantum-hardware-challenges-and-advance-uaes-research-framework/.

[25] Bojan Stojkovski, “China develops record-breaking 504-qubit quantum computer powered by Xiaohong chip,” Yahoo News, December 8, 2024, https://www.yahoo.com/news/china-develops-record-breaking-504-133133330.html.

[26] Olivier Ezratty, “Assessing IBM Osprey 433-qubit quantum computer,” Opinions Libres, November 11, 2022, https://www.oezratty.net/wordpress/2022/assessing-ibm-osprey-quantum-computer/.

[27] John Russell, “Google Debuts New Quantum Chip, Error Correction Breakthrough, and Roadmap Details,” HPC wire, December 9, 2024, https://www.hpcwire.com/2024/12/09/google-debuts-new-quantum-chip-error-correction-breakthrough-and-roadmap-details/.

[28] Chetan Nayak, “Microsoft unveils Majorana 1, the world’s first quantum processor powered by topological qubits,” Microsoft Azure, February 19, 2025, https://azure.microsoft.com/en-us/blog/quantum/2025/02/19/microsoft-unveils-majorana-1-the-worlds-first-quantum-processor-powered-by-topological-qubits/.

[29] This means the processor can complete 5.7 billion cycles per second. Each cycle allows the processor to execute a set of instructions, making it very fast for tasks like gaming and content creation.

[30] Although each core operates at a lower speed (2.5 billion cycles per second), the supercomputer compensates with a massive number of processors working in parallel, achieving incredible computational power overall.

[31] Quantum processors operate on a different principle, with qubits performing many calculations simultaneously. The theoretical limit of 1 terahertz (1 trillion cycles per second) represents the potential speed at which quantum operations can occur.

[32] Jonas Kulawik and Inês Andrade, “Volkswagen optimizes traffic flow with quantum computers,” Volkswagen Group, October 31, 2019, https://www.volkswagen-group.com/en/press-releases/volkswagen-optimizes-traffic-flow-with-quantum-computers-16995.

[33] “JPMorgan Chase and QC Ware Evolve Hedging for a Quantum Future,” J.P. Morgan, March 29, 2023, https://www.jpmorgan.com/technology/news/jpmorganchase-qcware-evolve-hedging-for-a-quantum-future.

[34] Cierra Choucair, “How Materials Science is Powering Quantum Computing: From Perovskites to Kagome Lattices,” Quantum Insider, November 1, 2024, https://thequantuminsider.com/2024/11/01/how-materials-science-is-powering-quantum-computing-from-perovskites-to-kagome-lattices/.