Alibaba and Baidu Cash Out on Quantum Computing Stakes

“There are so few private sector players involved in China’s quantum ecosystem, and those were two of the biggest.” —Sam Howell, Center for a New American Security.

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Trying to divine the motivations behind these divergent strategies is tricky, given the opaque nature of much decision-making in the county, says Sam Howell, a research associate at the Washington, D.C.-based think tank the Center for a New American Security. But given that the bulk of China’s cutting-edge quantum research is already carried out in government-funded universities, the loss of two major private sector players in short order is notable.

“It’s hard to get any real concrete information about what China’s doing in quantum and what its priorities are,” she says. “The reason why it’s so significant, though, is because there are so few private sector players involved in China’s quantum ecosystem, and those were two of the biggest.”

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“There’s still wide recognition [in China] that maintaining quantum capability is really strategically important, and there is still a desire to move it forward.” —Sam Howell, Center for a New American Security.

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Simple loss-cutting could explain the companies’ actions, says Howell, although some details do lend credence to the idea that Chinese authorities could have also played a role. After all, the two companies’ closures were only about a month apart; both companies donated their equipment to public institutions; and neither explained their moves. All of which could indicate government intervention. “It could have been an effort by the Chinese government to gain more control over quantum computing development, to get more resources for state-linked entities and just kind of streamline the innovation pipeline,” Howell says.

And, given the report and public statements noted above, the technology is undeniably recognized as a crucial asset by Chinese authorities. “There’s still wide recognition that maintaining quantum capability is really strategically important, and there is still a desire to move it forward,” she says.

Read the full story and more from IEEE Spectrum.