Lisa Su, chair and chief executive officer of Advanced Micro Devices Inc. (AMD), during a fireside chat at the Indian Institute of Science (IISc) in Bengaluru, India, on Thursday, Nov. 21, 2024.
Gabriela Bhaskar | Bloomberg | Getty Images
Shares of Advanced Micro Devices jumped nearly 8% on Friday following a report that IBM can utilize the company’s chips to run a quantum computing error correction algorithm.
IBM shares gained about 8% and headed for their best day since January.
Reuters reported on Friday that a paper will publish next week showing that IBM can run a quantum error correction algorithm on AMD’s field-programmable gate array chips. An IBM spokesman confirmed the report to CNBC.
In August, the two companies announced an agreement to develop quantum computing capabilities and integrate technologies. IBM said it plans to debut a “large-scale, fault-tolerant quantum computer” by 2029.
IBM called the new development a “milestone in our clear path” toward the 2029 projection.
“Designing and implementing a way to do this at scale, and without requiring expensive GPU clusters, is a significant achievement to scaling useful quantum computers,” the company said in a statement.
AMD didn’t immediately respond to a request for comment.
The technology utilizes quantum mechanics to address problems that traditional computers are unable to solve. Technology giants such as Google, Microsoft and Amazon are also racing to develop quantum computing.
Last year, Microsoft rolled out its first quantum computing chip, while Google launched its breakthrough chip named WIllow. A top quantum executive at Google told CNBC in March that the technology was “five years out from a real breakout.”
The various announcements have brought renewed interest to the quantum space, boosting stocks like D-Wave Quantum, Rigetti Computing and IonQ, which all climbed on Friday.
The Trump administration on Thursday refuted a report that it was negotiating stakes in quantum companies.
Correction: This story has been updated after Reuters corrected its report about what IBM will be able to do with AMD’s chips.
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