Insider’s memory
- Tech pioneer and investor Dan Caruso believes the time and place is right for quantum technologies, driven by growing investor interest and Colorado’s thriving quantum ecosystem.
- Caruso highlights the convergence of quantum computing and artificial intelligence (AI) as a revolutionary trend, with quantum already enhancing AI systems and showing potential for breakthroughs in efficiency and computation.
- Drawing parallels with the internet boom, Caruso predicts that quantum will experience a similar trajectory of hype, fixes and innovation in the long term, with early adopters achieving significant advantages in areas such as materials science, drug discovery and financial modeling.
If time and space define quantum science, then timing and location determine the quantum industry. Dan Caruso, managing director of technology pioneer Caruso Ventures and author of an upcoming book on the Internet revolution, believes the time is right – and he has found the perfect place – to develop and invest in quantum technologies.
First, the timing seems right for quantum. According to Caruso, quantum technology appears to be attracting investor attention in a way that few experts would have predicted just a few years ago.
Caruso reports that his team is seeing a shift in how cutting-edge technologies, such as quantum, are gaining momentum. He added that investors are now seeing examples of quantum technologies securing capital at promising valuations – a sign, he said, that the market is beginning to grasp their transformative potential.
“All of our quantum companies are doing very well, and by gaining significant traction in real-world applications, they are attracting positive attention from the investment community,” Caruso said. “It’s cutting-edge technology. And it has been difficult to raise money in the advanced technology space in the recent past, but it appears that a transition is underway in the quantum space. We can see money at good valuations. So we’re very excited.
Another unexpected trend that could influence the emergence of quantum is the growing awareness and interest in the potential of quantum to equate with the current darling of the technology investment community: artificial intelligence (AI).
In fact, Caruso believes that the convergence of quantum and AI could define this high-tech sector, creating a dynamic new layer of technological innovation. Caruso noted that quantum software is already improving AI systems, even before large-scale quantum computers arrive. This synergy could improve AI efficiency, particularly in areas such as energy consumption and computation, where quantum-inspired algorithms show promise.
Scientists are also making progress in using AI to assist quantum computing, for example with error correction and design experiments.
“We’re starting to see in quantum examples where AI and quantum are going to intersect sooner than I would have imagined,” Caruso said. “AI is getting all the attention and momentum right now. If we had had this conversation two months ago, I would have said that in about two or three years, quantum is going to add another dimension to what’s happening with AI, but we’re starting to hear examples of it in conversations with quantum. businesses that evolve in real time.
Caruso, who suggests that technology often evolves in similar patterns, said quantum – and perhaps this hybrid quantum-AI system that is developing – could be poised to mimic the growth in business and investment of AI over the past 18 months, demonstrating how software and hardware innovations can converge to drive dramatic value creation.
“For many investors, it’s about anticipating the next big trend,” Caruso explained. “After missing out on the AI boom, they may be wondering, ‘Where can I get a head start?’ Both quantum and space technologies are ripe for this kind of future advancement.
Colorado attracts quantum innovation
Besides timing, location also plays a role in Caruso’s optimism, which is based on his experience in Colorado’s thriving quantum ecosystem, where startups are scaling and delivering tangible results.
With investments in five Colorado-based quantum companies, Caruso sees the region as a model of quantum innovation and collaboration.
Colorado’s rise as a quantum power shouldn’t be seen as unusual or an anomaly, Caruso said. The development of quantum innovation in the region can be attributed to fundamental research conducted at institutions like CU Boulder and NIST, which have produced a significant number of quantum advancements. Caruso said that by taking this basic research and adding the entrepreneurial spirit of the region, you get the fuel of the ecosystem. He adds that the region also benefits from strong community ties that support the growth of companies like Quantinuum, Infleqtion, Maybell Quantum Industries, Vescent, Atom Computing and Longpath.
These companies are scaling up operations and developing cutting-edge quantum technologies, from methane leak detection to quantum refrigeration.
“Add to that the fact that these quantum companies have already taken root here and are expanding here, I would be hard-pressed to find anywhere in the United States or even the world that has this many types of quantum businesses that “We’re going through a scaling process, like you’re doing here in Colorado,” Caruso said.
He also cited Boulder’s mix of research, business and lifestyle as a major draw. He cited examples of top talent moving to Colorado for its family-friendly environment and access to world-class technology infrastructure.
According to Caruso, this convergence of lifestyle and innovation creates a “virtuous circle” that attracts both investors and talent.
As Colorado continues to solidify its position as a leader in quantum technology, Caruso remains optimistic about the sector’s potential. He sees quantum as a field that will not only open new scientific frontiers, but also drive economic growth and innovation.
Opportunities and obstacles on the quantum horizon
Despite this optimism, challenges remain and the timeline for achieving practical quantum computing capabilities remains a matter of debate, according to Caruso.
However, he is confident that early adopters of quantum technology will enjoy significant benefits, just like those who capitalized on early commercial applications of the Internet. At least initially, some fields stand to benefit from quantum’s ability to solve complex problems that are currently beyond the reach of classical computing.
“Early uses for those who gain access to working quantum computers could range from, for example, low-hanging fruit, to the design of very valuable new materials or very valuable new drugs,” Caruso said, adding the financial modeling as another potentially lucrative use case. .
Access to quantum computing resources and the specialized expertise required to exploit them remain significant obstacles.
Caruso predicted that early adopters of quantum would face a “gold rush” scenario, in which access to quantum computers would be limited and highly competitive.
“It’s not going to be like AI, where everyone has access to AI through ChatGPT – around the same time,” Caruso said. “With quantum computing, the capacity of a small number of the most advanced quantum computers will be limited. Those most willing to extract value in the form of drug discovery, materials science, or structuring financial transactions will pay the most for access to scarce quantum computing resources.
Lessons from the Internet boom
Caruso has a unique vantage point for considering the future of the quantum industry. He is a technology pioneer who has ridden the crashing waves – and endured the crashes – that accompany technological transformation.
Caruso draws parallels between today’s quantum landscape and the early days of the Internet, a topic he explores in his upcoming book, titled Bandwidth. The book tells the story of “the ambition, deception, and innovation that shaped the Internet age and the dot-com boom.” It also traces the Internet’s journey from its inception through its boom-and-bust cycle, perhaps offering insight into how similar trends might develop in quantum technology.
“The Internet has been transformative, but its hype cycle has also led to overinvestment and subsequent crashes,” Caruso said.
He sees AI and quantum technology following a similar path: a boom fueled by real breakthroughs, followed by inevitable market corrections and, ultimately, long-term normalization.
Ultimately, Bandwidth offers lessons about what really drives technological change: people, not technology.
“The characters really made that possible, and their exploits, some of which were good, some of which were not so good, many of the latter ending up in prison for a good portion of the rest of their lives,” Caruso said. “So the Bandwidth Boom and Bust showcases everything from the heroism of the early innovators to the chaos when it all fell apart, and then explains how a new generation of entrepreneurs created enormous value by reigniting the industry.”
Caruso suggests that understanding the twists and turns of the Internet boom and recognizing the heroes and villains of this era could eventually help the quantum industry identify the trends – as well as the visionaries and villains – that will invariably become part of history of the quantum being written. .