Leading the Development of Non-Linear Photonics to Drive the Quantum Revolution

Quantum Computing, Inc. (Nasdaq: QUBT) is an innovative, integrated photonics and quantum optics technology company that provides accessible and affordable quantum machines to the world today. QCi’s products are designed to operate at room temperature and low power at an affordable cost. The Company’s portfolio of core technology and products offer unique capabilities in the areas of high-performance computing, artificial intelligence, and cybersecurity, as well as remote sensing applications.

As QCi advances its technology and moves into commercialization, CEO Dr. William McGann (‘Bill’) spoke to IMS Investor Relations Founder and President John Nesbett, providing insights into the company's strategic progress and future potential.

Bill, you took the role of CEO at a busy time for the Company. Can you tell us what the Company has been working on since you took the role almost a year ago?

Since I took over as CEO in February 2024, QCi has been focused on several strategic initiatives to leverage our technology advantages in the quantum photonics space. We have been developing our high-performance computing and machine learning platforms, with key advancements in our Dirac-3 and reservoir computing platforms. Additionally, we've made significant progress in setting up our TFLN (thin film lithium niobate) chip fabrication facility in Tempe, Arizona, which is expected to be operational this quarter (Q1 2025). We also launched the “Accessible and Affordable” campaign to introduce our products to a broader market, emphasizing their cost-effectiveness and efficiency.

Your photonics approach to quantum is different than the mainstream media’s perception of quantum being based on superconducting electrons. Can you discuss the photonic quantum computing market?

The photonic quantum computing market is a rapidly evolving space with significant potential to reshape industries reliant on high-performance computing. Photonic quantum systems, like the ones we're developing at QCi, leverage the unique properties of light to process information, which offers several distinct advantages over traditional superconducting or annealing quantum systems. One of the most important is that photonic quantum systems can operate at room temperature, eliminating the need for cryogenic cooling, which is a major limitation for many quantum platforms. We’re seeing interest from sectors like telecommunications, data centers, and even space exploration, where the ability to handle massive data sets with high precision and minimal power consumption is crucial.

The market is still in its early stages, but it’s clear to us that photonics will play a central role in the future of quantum computing. As the technology matures, I believe we’ll see it integrated into more commercial and government applications. For QCi, our focus on developing practical, scalable, and affordable photonic quantum systems positions us well to lead in this growing market.

Quantum technology often sounds like something from the distant future. Are we really at a stage where it can be accessible and useful today?

While it's true that some aspects of quantum computing—particularly cryogenic-based technologies—face significant scaling challenges, quantum technology is already proving its value in specific, impactful applications today. QCi has a unique approach with our room-temperature quantum photonics platform, which allows us to deliver real-world solutions without the infrastructure and scalability hurdles that other methods face. This is a key differentiator in our “Accessible” strategy that makes quantum computing practical for either on-premises use or accessible over our cloud platform.

Quantum computing and AI are leading areas of technology investment. The market is increasingly seeing practical applications of AI. How does quantum fit in?

Quantum computing doesn't just support artificial intelligence—it complements and even competes with AI in solving certain complex problems, such as optimization, which traditional methods struggle to handle efficiently. To your earlier question on the state of quantum, our work shows that quantum technology is not decades away—it's here now, providing meaningful advantages in areas like quantum sensing, telecommunications, and AI-enhanced problem-solving.

Shifting gears, can you tell us more about QCi’s thin film lithium niobate chip fabrication initiative?

As part of our strategic focus to "put photons to work," we identified that developing our own materials would enhance supply chain control and provide a significant competitive edge. In early 2023, we launched our TFLN chip fabrication initiative, including the selection and construction of a manufacturing facility located in ASU’s Research Park in Tempe, Arizona. The facility, which is on track to be fully operational this quarter (Q1 2025), will produce photonic integrated circuits (PICs) based on TFLN that offer significant advantages such as miniaturization, higher speed, extremely low power consumption, and high environmental stability. TFLN-based optical chips are ideal for applications in data communications, energy management, remote sensing, and spaceborne requirements. The lower energy demand of TFLN compared to silicone systems is driving the growing demand for these chips.

To date, we have secured multiple pre-orders under our Pilot Launch Program, including collaborations with renowned European and Asian technical universities focusing on telecommunications applications, a Canadian PIC design house for a custom chip project, and a U.S.-based university advancing acoustic and cross-domain microsystems. These engagements demonstrate the growing demand for TFLN’s lower energy consumption and scalability, solidifying its position as a transformative material for next-generation photonics and quantum technologies.

What benefit will this bring to QCi? Tell us how this will impact your business model going forward?

The benefits for QCi include enhanced performance and scalability of our core technologies and products, and the facility will allow us to produce chips for other markets, such as data centers and telecommunications, increasing and diversifying our revenue streams. As the first U.S.-based TFLN production facility, QCi is positioned as a leader in the growing optical chip market.

Our chip fabrication facility also presents a relatively near-term, high-margin revenue opportunity. This is a key element of our strategic business model, as the revenue generated will support the development of our next-generation quantum technologies and hardware products. These revenue streams are designed to complement and reinforce each other.

Can you talk to us about the partnerships that the company has?

We have established several partnerships to test and validate our products. We have a long-standing relationship with NASA, having been awarded multiple sub-contracts and a direct contract. These projects include innovations in quantum LiDAR, reservoir computing, and photonic sensor systems, with potential applications for satellite missions and climate modeling. We believe there is great opportunity in this space.

In addition, we have a successful partnership with Johns Hopkins University, and our renewed cooperative research and development agreement with Los Alamos National Laboratory allows them to test our Dirac-3 platform. Collaborations with various universities are instrumental in benchmarking the performance of our hardware and publishing findings in technical journals, further validating our technology and expanding our market reach.

What is the Company hoping to achieve in 2025?

We're focused on several key objectives. First, we're committed to advancing our chip fabrication facility, ensuring it meets the highest standards of innovation and efficiency. We're also evolving our go-to-market strategy for our quantum products, adapting to market demands and maximizing our reach. One of our primary goals is to convert our pipeline of commercial and government opportunities into sales.

Additionally, we aim to expand our distribution network by partnering with sector-specific and industry vertical technology partners who have sales networks globally. Maintaining momentum in the rollout of Dirac-3 for both commercial and government clients is crucial since this platform is central to our product offering and market penetration.

Thanks Bill. We look forward to learning more about QCi’s initiatives and partnerships as they develop.