Pioneering Quantum Computing in the Energy Industry: Chevron Joins OQC's $100 Million Round

Rhea-AI Summary

OQC, a quantum computing-as-a-service leader, secures $100m Series B funding with Chevron Technology Ventures joining. Quantum computing in energy market expected to grow at 37.9% CAGR. Chevron's investment signifies a major move into quantum computing.

Insights

Energy Sector Analyst

The involvement of Chevron Technology Ventures in the Series B funding of OQC represents a strategic alignment between the energy sector's need for advanced computational capabilities and the burgeoning field of quantum computing. The energy sector is increasingly reliant on complex simulations for exploration and optimization, areas where quantum computing could offer exponential improvements in speed and accuracy. Chevron's investment is indicative of a broader industry trend where traditional energy companies are seeking to diversify and innovate amidst a global push for increased efficiency and lower carbon emissions.

From an industry perspective, the energy market's projected Compound Annual Growth Rate (CAGR) of 37.9% for quantum computing applications underscores the transformative potential of this technology. Chevron's backing could catalyze further investments from other energy majors, potentially leading to a competitive race to integrate quantum computing within their operations. This could result in significant long-term shifts in how energy companies approach problems such as catalysis, material science and logistics, with implications for cost savings, environmental impact and even the pace of transition to renewable energy sources.

Quantum Computing Expert

OQC's launch of the OQC Toshiko, a 32-qubit enterprise-ready quantum computing platform, signifies a critical step in transitioning quantum computing from a theoretical and experimental stage to practical, commercial use. The integration of quantum computing into commercial data centers is a monumental leap, addressing the accessibility and security concerns previously hindering adoption by businesses. For stakeholders, the ability to leverage hybrid computing that combines quantum and high-performance computing could lead to solving previously intractable problems, opening up new avenues for innovation and revenue streams.

The mention of OQC's ambition to develop platforms of hundreds of qubits is particularly noteworthy, as it signals a move towards achieving 'quantum advantage,' where quantum computers perform tasks beyond the capability of classical computers. The impact of reaching quantum advantage could be profound, potentially disrupting entire industries by enabling new capabilities in optimization, machine learning and materials science.

Financial Analyst

Chevron's investment in OQC's Series B funding round is a significant endorsement for the quantum computing industry. As part of a $100m round, which is the UK's largest ever in this field, it reflects both investor confidence in OQC's technology and the growth potential of quantum computing as a service (QCaaS). For investors, the move may signal a bullish outlook on the sector, suggesting that quantum computing is transitioning from a speculative investment to one with tangible applications and a clear path to commercialization.

The participation of existing investors, including prominent venture capital funds and institutional investors, provides additional validation of OQC's prospects. This funding round could have a ripple effect, attracting further capital into the quantum computing space and potentially boosting valuations of companies within the sector. In the short term, this news may influence the stock market by shaping investor perceptions of the future profitability and risk profile associated with quantum computing and the companies poised to adopt it.

READING, England, March 5, 2024 /PRNewswire/ -- OQC, a global leader in quantum computing-as-a-service (QCaaS), today announced that Chevron Technology Ventures, part of Chevron Corporation (CVX: NYSE), has joined its $100m Series B funding round.

Quantum computing in the energy market is expected to grow at a CAGR of 37.9%, owing to the increasing demand for efficient optimisation and simulation across the sector^[1]. Chevron's investment marks a significant move by a supermajor into the rapidly evolving field of quantum computing.

"OQC's development of the quantum computer has the potential to change the information processing landscape by merging the bounds of engineering and physics," said Jim Gable, Vice President, Innovation and President of Technology Ventures at Chevron. "This is the latest investment from our Core Energy Fund, which focuses on high-tech, high-growth startups and breakthrough technologies that could improve Chevron's core oil and gas business performance as well as create new opportunities for growth."

OQC recently launched OQC Toshiko, an upgradable 32-qubit platform and the world's first Enterprise Ready Quantum Computing Platform. As the first company in the world to integrate quantum computing into commercial data centres, OQC is bringing quantum out of the lab and into the data centre. The company aims to make it possible to offer hybrid computing, integrated quantum and high-performance computing, to the market.

A quantum future for energy
OQC's technology provides several potential groundbreaking opportunities for the energy sector, including  the development and optimisation of catalysts and the efficiency of transportation and distribution networks. Quantum is anticipated to accelerate the energy industry's discovery and development of new materials through the simulation of complex molecules to lower carbon products.

To realise this future, the energy industry requires secure, accessible and powerful quantum computing that is integrated with existing high-performance computing. Prior to the launch of OQC Toshiko, quantum computers were only available in labs, making secure access for companies and integration with existing high-performance computing the largest barriers to wider business adoption of this groundbreaking technology.

Spearheading industry-leading R&D
OQC recently announced that SBI Investment, Japan's premier venture capital fund, is leading OQC's $100m Series B raise. Existing investors Oxford Science Enterprises (OSE), The University of Tokyo Edge Capital Partners (UTEC), Lansdowne Partners, and OTIF, acted by manager Oxford Investment Consultants (OIC), are also participating.

The ongoing round is the UK's largest ever Series B in quantum computing enabling industry-leading R&D that could pave the way to quantum advantage and furthers OQC's ability to bring next generation platforms of hundreds of qubits to businesses globally.

Commenting on the news, Ilana Wisby, Chief Executive Officer at OQC, said: "Chevron's investment marks a significant milestone in harnessing quantum computing for the energy sector. We're excited to drive innovation and efficiency in exploration and renewables and pioneer enterprise-ready quantum in the energy sector."

About Chevron Technology Ventures
Chevron Technology Ventures identifies and invests in externally developed technologies and new business solutions with the potential to enhance the way Chevron produces and delivers affordable, reliable, and ever-cleaner energy. CTV has more than two decades of being the primary on-ramp for external innovation into Chevron. For more information, visitwww.chevron.com/technology/technology-ventures.

About OQC
OQC is a global leader in quantum computing-as-a-service, building a brighter future by providing enterprise-ready quantum solutions that seamlessly integrate into digital infrastructures and customer workflows. Its award-winning and world-first integration of quantum computing into colocation facilities removes technical, financial, and geographical barriers to quantum; offering every enterprise a chance to seize a competitive edge.

Prior to Series B, OQC raised $52 million including the largest Series A in quantum in the UK at that time. In 2023, OQC's team grew to over 100, attracting talent from across the globe. The team has built and deployed OQC Toshiko platforms to colocation data centres expanding its operations in the UK, Japan and Spain.

OQC Toshiko is the world's first and only enterprise ready platform: a powerful next generation system, deployed to commercial data-centres, enabling businesses to securely tap into ground-breaking technology from anywhere in the world. This new technology is now in private preview and coming soon on public cloud and data centre fabric. For more information, visit our website: www.oxfordquantumcircuits.com.

^[1] UnivDatos Market Insights

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SOURCE Oxford Quantum Circuits

FAQ

What is the latest funding round announced by OQC?

OQC announced a $100m Series B funding round with Chevron Technology Ventures joining.

What is the expected growth rate of quantum computing in the energy market?

Quantum computing in the energy market is expected to grow at a CAGR of 37.9%.

What is the significance of Chevron's investment in OQC?

Chevron's investment marks a significant move by a supermajor into the rapidly evolving field of quantum computing.

What is OQC Toshiko and its significance?

OQC Toshiko is an upgradable 32-qubit platform and the world's first Enterprise Ready Quantum Computing Platform, aiming to offer hybrid computing to the market.

Who is leading OQC's $100m Series B raise?

SBI Investment, Japan's premier venture capital fund, is leading OQC's $100m Series B raise.

What does OQC aim to achieve with its quantum technology in the energy sector?

OQC aims to accelerate the energy industry's discovery and development of new materials through quantum simulation to lower carbon products.