D-Wave Quantum $QBTS ( ▼ 3.05% ) said Wednesday it will acquire Quantum Circuits for $550 million, stepping up its push into gate-model quantum computing. The deal will be paid with $300 million in D-Wave stock and the rest in cash, as the company looks to broaden beyond its annealing roots.
D-Wave has long been the leader in annealing quantum systems, which are well suited for optimization problems but more limited in scope. Gate-model quantum computers, by contrast, are seen as the long-term endgame for the industry and tend to attract more government and enterprise interest.
Why gate models matter
Gate-model systems aim to tackle a wider range of complex problems and are widely viewed as the most scalable path to general-purpose quantum computing. In its announcement, D-Wave said combining its annealing platform with Quantum Circuits’ error-corrected gate-model technology should significantly speed up its timeline to a scalable gate-model system.
The company now expects to deliver an initial dual-rail gate-model system in 2026, an important milestone as competition heats up across the quantum space.
A strategy backed by fresh capital
CEO Dr. Alan Baratz has been clear that gate-model development is a priority. After building up roughly $830 million in cash, D-Wave says it finally has the resources to invest meaningfully in gate models, both internally and through acquisitions like this one.
The deal also follows closely on the company’s announcement earlier this week that it solved a key heat and wiring challenge in superconducting gate-model systems, adding momentum to its broader push toward error-corrected quantum computing at scale.