Industry Overview - Quantum computing is still in the experimental phase, with significant challenges such as error-proneness and stability of qubits needing to be addressed [2][3] - Companies are making progress, with Nvidia's CEO indicating that quantum computing is nearing an inflection point for solving practical problems [4] D-Wave Quantum - D-Wave is recognized as a leader in quantum annealing, focusing on finding optimal solutions for specific problems rather than solving complex mathematical problems [6] - The company has a market cap of $10 billion, with a current price of $28.83 and a gross margin of 82.82% [8] - D-Wave has over 100 paying customers and is experiencing growth in revenue and bookings, while also moving into gate-based quantum computing [8][9] - The acquisition of Quantum Circuits aims to develop an error-correcting, gate-based system [9] Rigetti Computing - Rigetti is pursuing a universal gate-based quantum system, which is expected to solve more complex computational problems [10] - The company has a market cap of $8.5 billion, with a current price of $25.62, but has a significantly negative gross margin of -6849.48% [11][12] - Rigetti's systems are reported to be over 1,000 times faster than competitors, but it lags in accuracy, achieving only 99.5% 2-gate fidelity compared to IonQ's 99.99% [12] - The company has minimal revenue and faced setbacks, including not advancing in the DARPA Quantum Benchmarking Initiative and delaying the availability of its new 108-qubit machine due to fidelity issues [13][15] Comparative Analysis - D-Wave is preferred for its established niche in quantum annealing and its strategic move towards gate-based systems, which could leverage its existing business [14] - Rigetti's challenges with accuracy and setbacks in key programs highlight its competitive disadvantages [15]