IonQ Announces New $21.1 Million Project with United States Air Force Research Lab (AFRL) to Push Boundaries on Secure Quantum Networking

Rhea-AI Summary

IonQ has announced a new $21.1 million project with the United States Air Force Research Lab (AFRL) to advance quantum networking capabilities. The project, executed through IonQ's recently acquired Qubitekk, will focus on installing quantum network infrastructure at the Innovare Advancement Center in Rome, New York.

The initiative aims to develop high-performing network access points for quantum computers and networked devices, expand compatibility with existing telecommunication infrastructure, and establish free-space optical links from ground stations to uncrewed aerial systems (UASs). This project follows a $54.5 million agreement signed with AFRL in September 2024 and builds on IonQ's growing portfolio of government contracts.

The company reported doubling its year-over-year revenue in Q3 2024, demonstrating strong market demand for its quantum computing and networking products, including the IonQ Forte Enterprise and Tempo systems.

Positive

• Secured new $21.1 million contract with AFRL
• Recently signed larger $54.5 million AFRL agreement in September 2024
• Doubled year-over-year revenue in Q3 2024
• Strategic expansion into quantum networking through Qubitekk acquisition

Negative

• None.

Insights

Defense Technology Analyst

The $21.1 million AFRL contract represents a strategic advancement in quantum networking capabilities with significant defense implications. The development of free-space optical links between ground stations and UASs could revolutionize secure military communications. Integrating quantum networks with drone systems addresses a critical gap in current defense infrastructure, potentially enabling unprecedented levels of secure data transmission and real-time quantum communication in tactical scenarios.

The project's focus on network interoperability and compatibility with existing telecommunications infrastructure suggests a practical approach to quantum integration, reducing implementation barriers and accelerating deployment timelines. This builds upon IonQ's earlier $54.5 million AFRL agreement, indicating growing confidence in their quantum solutions for defense applications.

Quantum Computing Specialist

The technical scope of this project is particularly noteworthy. Establishing quantum network infrastructure with high-performing access points represents a significant step toward practical quantum internet implementation. The integration of blind quantum computing capabilities, combined with the Qubitekk acquisition's networking expertise, positions IonQ to potentially dominate the emerging quantum networking sector.

For investors, this development is important as it demonstrates IonQ's ability to convert theoretical quantum advantages into practical, revenue-generating applications. The doubling of year-over-year revenue in Q3 2024, coupled with these major government contracts, validates their commercialization strategy and suggests strong market positioning in both quantum computing and networking segments.

Federal Contracts Analyst

This contract signifies accelerating federal investment in quantum technologies, with IonQ emerging as a trusted provider for critical defense infrastructure projects. The timing and scale of these contracts - $21.1 million following a $54.5 million agreement - indicate aggressive government spending in quantum technologies, likely driven by national security imperatives and technological competition with global powers.

The project's alignment with AFRL's strategic priorities and the involvement of multiple research institutions suggests potential for additional contract opportunities. The successful execution of these projects could position IonQ favorably for future defense and intelligence community contracts, establishing a reliable revenue stream from government sources.

Together, IonQ and AFRL expect to create groundbreaking capabilities to establish free-space optical links from ground stations to drones

This project highlights the strong market demand for IonQ’s innovative quantum computing and networking products

IonQ’s recent acquisition of Qubitekk extends networking expertise and opens new avenues for innovation with project partners

COLLEGE PARK, Md.--(BUSINESS WIRE)-- IonQ (NYSE: IONQ), a leader in the quantum computing and networking industries, today announced a new $21.1 million project via Qubitekk, Inc. to work with the United States Air Force Research Lab (AFRL).

This new effort represents another significant milestone for IonQ as it collaborates with AFRL to install quantum network infrastructure at the Innovare Advancement Center in Rome, New York. Quantum networks are poised to become important for secure infrastructure, as the technology enables multiple nodes to communicate via entangled qubits, offering secure communications, precise timing synchronization, and a foundation for distributed quantum computing.

The new quantum project will support AFRL’s Quantum Information Science & Technology Branch at the Information Directorate and its quantum networking and computing research. Under this effort, IonQ will:

• Develop a network with high-performing access points to drive the interoperability of quantum computers and networked devices
• Deliver networking hardware to expand compatibility with existing telecommunication infrastructure
• Collaborate with AFRL to create ground-breaking capabilities in establishing free-space optical links from ground stations to uncrewed aerial systems (UASs)

“We are thrilled to deepen our collaboration with AFRL to provide advanced quantum network technologies for the U.S. Air Force, leveraging the team and technology of our recent Qubitekk asset acquisition” said Peter Chapman, President and CEO of IonQ. “This is an exciting year for IonQ and the quantum industry at large, as we continue to see significant revenue growth for our networking technologies and strong demand for our IonQ Forte Enterprise and Tempo quantum computing systems.”

"Advancing quantum technology is crucial for maintaining our nation's technological leadership. Our partnership with the industry signifies a substantial commitment to nurturing this vital competitive edge," remarked Michael Hayduk, Deputy Director of the Air Force Research Laboratory, Information Directorate. "We are devoted to exploring innovative advancements in quantum computing and networking that will enhance our national security capabilities.

The new 2024 Q4 project with AFRL builds on recent contracts such as the $54.5 million agreement signed in September 2024 with AFRL and the contract with the Applied Research Laboratory for Intelligence and Security (ARLIS) to design a first-of-its-kind, networked system for blind quantum computing, and other significant contracts. This momentum is reinforced by IonQ’s Q3 2024 financial results, with the company doubling its year-over-year revenue for the quarter.

To learn more about IonQ and its latest system news and business developments, visit https://ionq.com.

About IonQ

IonQ, Inc. is a leader in the quantum computing and networking industry, delivering high-performance systems aimed at solving the world’s largest and most complex commercial and research use cases. IonQ’s current generation quantum computers, IonQ Forte and IonQ Forte Enterprise, are the latest in a line of cutting-edge systems, boasting 36 algorithmic qubits. The company’s innovative technology and rapid growth were recognized in Newsweek’s 2025 Excellence Index 1000, Forbes’ 2025 Most Successful Mid-Cap Companies list, Built In’s 2025 100 Best Midsize Places to Work in Washington DC and Seattle, respectively. Available through all major cloud providers, IonQ is making quantum computing more accessible and impactful than ever before. Learn more at IonQ.com.

IonQ Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the terms “will,” “expect,” "exceeding,” “expectations,” “potential,” “progressing,” “trajectory,” “poised,” and other similar expressions are intended to identify forward-looking statements. These statements include those related to the expected creation of certain technologies, deliverables and capabilities; the expected future significance, capabilities and security of quantum networks; IonQ’s reliance on Qubitekk, Inc. and the former Qubitekk team for project and contract delivery; the potential benefits of IonQ’s work with project partners; and the problems that can be solved by IonQ’s quantum computers and networks. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: any disruptions and other problems with our operations including research and development, hardware, systems, components or facilities; IonQ’s ability to attract and retain its key employees and other personnel with specialized knowledge; any changes or inadequacies in IonQ’s quantum computing and networking capabilities and plans; IonQ’s relatively limited history in development quantum networking technologies; the capability of our quantum systems and quantum networks to provide certain capabilities and advantages; changes in laws and regulations affecting IonQ, its assets or the quantum sector generally; and IonQ’s ability to implement its business plans, technical roadmap, and projects. You should carefully consider the foregoing factors and the other risks and uncertainties disclosed in the Company’s filings, including but not limited to those described in the “Risk Factors” section of IonQ’s most recent Quarterly Report on Form 10-Q and other documents filed by IonQ from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and IonQ assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. IonQ does not give any assurance that it will achieve its expectations. IonQ may or may not choose to practice or otherwise use the inventions described in the issued patents in the future.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250113870913/en/

IonQ Media:

Jane Mazur

press@ionq.co



IonQ Investor:

investors@ionq.co

Source: IonQ

FAQ

What is the value of IonQ's new contract with the Air Force Research Lab?

IonQ's new contract with AFRL is valued at $21.1 million, focused on quantum networking infrastructure development.

What will IonQ develop for AFRL under the new contract?

IonQ will develop network access points for quantum computers, expand telecommunications compatibility, and create free-space optical links from ground stations to uncrewed aerial systems.

How much did IONQ's revenue grow in Q3 2024?

IonQ doubled its year-over-year revenue in Q3 2024.

Where will IonQ install the quantum network infrastructure for AFRL?

IonQ will install the quantum network infrastructure at the Innovare Advancement Center in Rome, New York.

How much was IONQ's previous AFRL contract signed in September 2024?

IonQ signed a $54.5 million agreement with AFRL in September 2024.