Quantum computing start-up IonQ just landed a four-year $54.5 million contract with the United States Air Force Research Lab (AFRL) for a quantum networking project, the largest such contract awarded in the U.S. this year and the biggest since IonQ won a $25.5 million deal from AFRL almost exactly a year ago.
Deals of this size are still extremely rare–not only in the U.S. but around the world–in a quantum computing sector where most corporate and government clients are still dabbling with the technology. AFRL has been an early adopter of quantum, working with many firms in the space, and its connection to IonQ goes back about two years to an initial partnership between the two parties.
IonQ is not due for its next earnings report for at least a month, but following the announcement of the new AFRL contract, the College Park, Maryland, company disclosed that with one quarter left in the fiscal year, it already has $72.8 million in bookings year-to-date. It should easily blow past its previously-stated bookings guidance of between $75 million and $95 million for the full year.
While IonQ and a handful of other quantum computing companies have announced smaller deals for quantum processors or full-scale quantum computers, the AFRL involves building a quantum network that would include multiple networked quantum computing systems that could vastly augment the computing potential of just one quantum computer. IonQ CEO Peter Chapman has said on past quarterly earnings that the company was working in this direction, and IonQ last year acquired a Canadian quantum networking specialist called Entangled Networks.
AFRL, located in Rome, New York, has been reported to be involved in a large New York state quantum networking project with the U.S. Department of Energy’s Brookhaven National Laboratory.
“We are pleased to continue our partnership with IonQ," said Michael Hayduk, Deputy Director of the Air Force Research Laboratory, Information Directorate. "Working with industry partners, we can significantly advance the Department of Air Force's efforts to integrate quantum networks into future operations, bolstering our national defense.”
The big contract caused IonQ’s stock price to jump more than 20% to $9.72 on Sept. 27. A small number of quantum computing firms have sought new funding through mergers with special purpose acquisition companies that have allowed them to pursue IPOs. With growing bookings and revenue and a quietly surging share value, IonQ has fared better than the rest.
“We are thrilled to be at a major inflection point for the company and the industry. No other publicly traded pure-play quantum computing company has nearly doubled revenue each year since going public, nor have they approached the $100M bookings mark so quickly,” Chapman said.