- Field: Full-Stack Quantum Computing (Superconducting Qubits)
- Headquarters: Berkeley, California, USA
- Founded: 2013
Core Innovation & Technology: Rigetti Computing is a pioneer in full-stack quantum computing, focusing on the development and deployment of superconducting qubit-based quantum processors. Their core innovation lies in building scalable quantum systems from the ground up, encompassing quantum hardware, control systems, and a cloud-based platform for client access.
Their key technology and offerings include:
- Superconducting Qubit Processors: Rigetti designs and fabricates quantum processing units (QPUs) using superconducting circuits. They have continuously advanced their chip architecture, including the development of multi-chip quantum processors for scalable systems. [1]
- Ankaa-3 System: Launched in December 2024, the 84-qubit Ankaa-3 system features an extensive hardware redesign for superior performance. It achieved significant two-qubit gate fidelity milestones, successfully halving error rates to 99.0% median iSWAP gate fidelity and demonstrating 99.5% median fidelity with fSim gates. [1, 2]
- Novera QPU: A 9-qubit QPU featuring a square lattice of qubits, available for order and designed for two-qubit operations.
- Rigetti Quantum Cloud Services (RQCS): The company has operated quantum computers over the cloud since 2017, serving global enterprise, government, and research clients. [1]
- Proprietary Quantum-Classical Infrastructure: Rigetti’s infrastructure provides high-performance integration with public and private clouds, enabling practical quantum computing applications. [2]
- Advanced Fabrication Techniques: Research into techniques like Alternating-Bias Assisted Annealing (ABAA) chip fabrication aims to improve chip performance and scalability. [3]
Key Features and Differentiators:
- Full-Stack Approach: Rigetti controls the entire quantum computing stack, from chip design and fabrication to software and cloud services, allowing for optimized performance and rapid iteration. [1]
- Scalable Architecture: Their proprietary chip architecture with 3D signal delivery is designed for scalability, with plans to reach 100+ qubits by the end of 2025 with targeted error rate reductions. [1]
- High-Fidelity Gates: Achieving high fidelity in two-qubit gates is crucial for running complex algorithms and is a key focus of their hardware development. [1]
- On-Premises Systems: Since 2021, Rigetti has also sold on-premises quantum computing systems (24 to 84 qubits) to national laboratories and quantum computing centers. [1]
- Government and Academic Partnerships: Strong engagement with government agencies (DARPA, AFOSR) and academic institutions (Montana State University, Harvard, MIT, University of Chicago) for research and system sales. [1, 2, 3]
Current Financial Performance (with deeper look into Q1 2025):
Rigetti Computing’s financial performance reflects its early-stage position in the commercial quantum computing market, characterized by modest revenues and significant operating losses, offset by substantial non-cash gains in Q1 2025.
- Revenue:
- Q1 2025: $1.5 million [3, 4] (a decrease from $3.1 million in Q1 2024 [4]). This revenue is largely unchanged from prior quarters and underscores its early-stage commercialization. [3]
- FY 2024: $10.8 million [1, 2]
- Gross Margin:
- Q1 2025: Declined to 30% from 49% in the previous year. [4]
- Operating Expenses:
- Q1 2025: $22.1 million [3]
- FY 2024: $74.2 million [1, 2]
- Operating Loss:
- Q1 2025: $21.6 million [3, 4]
- FY 2024: $68.5 million [1, 2]
- Net Income (Loss):
- Q1 2025: $42.6 million net profit [3]
- FY 2024: -$201.0 million net loss [1, 2]
Profitability in Q1 2025: Rigetti reported a net profit of $42.6 million in Q1 2025. [3]
However, it is crucial to understand the source of this profit:
- This net profit was primarily driven by a $62.1 million non-cash gain from the revaluation of derivative warrant and earn-out liabilities. [3] These gains are tied to changes in the company’s stock price and do not reflect core business performance or operational cash flow. [3]
- Operationally, Rigetti incurred a $21.6 million operating loss in Q1 2025. [3, 4] This indicates that the company’s core business activities are not yet profitable and continue to require significant investment.
Balance Sheet Highlights (as of Q1 2025):
- Cash and Liquid Investments: Rigetti ended Q1 2025 with $209.1 million in cash and liquid investments. [3] This figure rose to $237.7 million by the end of April, following a $35 million equity investment from Quanta Computer. [3]
- Market Capitalization: As of July 2025, Rigetti’s market cap is approximately $4.63 billion to $4.98 billion. [5, 6] This represents a significant increase from earlier periods (e.g., $0.13 billion in 2023). [5, 6]
Revenue Sources & Growth Drivers: Rigetti’s revenue is currently modest and primarily generated from:
- Government-backed research partnerships and grants: Such as the DARPA Quantum Benchmarking Initiative (up to $1 million) and the Air Force Office of Scientific Research (AFOSR) consortium ($5.48 million). [3]
- QPU Sales: The sale of Novera QPUs, including the first sale to an academic institution (Montana State University in December 2024). [1, 2]
- Technical collaborations: Partnerships with research institutions like Harvard, MIT, and the University of Chicago, which can lead to advancements and potential future revenue streams. [3]
- Strategic Partnerships: A significant collaboration with Taiwan-based Quanta Computer, involving a commitment of over $100 million each over five years for superconducting quantum computing technologies, plus a $35 million equity investment by Quanta. [1, 2] This partnership leverages Quanta’s manufacturing expertise with Rigetti’s quantum technology. [1, 2]
Cost Structure & Loss Components: Rigetti’s cost structure is dominated by:
- Operating Expenses: These include substantial R&D efforts and expansion activities, which ballooned to $22.1 million in Q1 2025. [3] For FY 2024, operating expenses were $74.2 million. [1, 2]
- Non-Cash Charges: A major component of their net losses (and gains, as seen in Q1 2025) comes from non-cash charges related to the fair value change in earn-out and derivative warrant liabilities. For example, in Q4 2024, these non-cash charges amounted to $135.1 million, contributing to a net loss of $153.0 million for the quarter and $201.0 million for the full year 2024. [1, 2] These accounting adjustments do not reflect the company’s operational cash burn.
Market Position & Milestones:
- Public Listing: Rigetti Computing is publicly traded on the NASDAQ under the ticker symbol RGTI.
- DARPA & AFOSR Contracts: Advanced to Stage A of DARPA’s Quantum Benchmarking Initiative and leads a $5.48 million AFOSR research consortium. [3]
- Ankaa-3 Launch: Launched its 84-qubit Ankaa-3 system in December 2024, achieving record high fidelity. [1, 2]
- Optical Control of Qubits: Collaborated with Harvard, MIT, and the University of Chicago to demonstrate optical control of superconducting qubits, a potential advance for scaling. [3]
- Quanta Computer Partnership: Finalized a strategic collaboration and $35 million investment from Quanta Computer in February 2025. [1, 2, 3]
- First Academic QPU Sale: Sold a Novera QPU to Montana State University in December 2024, marking its first QPU sale to an academic institution. [1, 2]
- Market Recognition: Named by XPRIZE founder Peter Diamandis as one of the three “major players” in the push toward quantum supremacy in America, alongside Google and IBM.
Strengths:
- Full-Stack Capability: Control over both hardware and software allows for optimized system performance and rapid innovation. [1]
- Advanced Hardware: Continuous development of high-qubit-count, high-fidelity superconducting processors like Ankaa-3. [1, 2]
- Strong Research Partnerships: Collaborations with leading academic and government institutions validate their technology and provide funding. [3]
- Strategic Industry Partnerships: The collaboration with Quanta Computer provides significant funding and leverages complementary strengths for scaling. [1, 2]
- Solid Cash Position: A substantial cash reserve provides a runway for continued development despite operational losses. [3]
Challenges and Risks:
- Persistent Operational Losses: Despite a reported net profit in Q1 2025, the company continues to incur significant operating losses, indicating that its core business is not yet self-sustaining. [3]
- Modest Revenue: Current revenue levels are very low, highlighting the early commercialization stage of quantum computing. [3, 4]
- Reliance on Non-Cash Gains: The reported net profit in Q1 2025 was primarily due to non-cash accounting adjustments, which can be volatile and do not reflect operational profitability. [3]
- High Capital Requirements: Developing quantum technology is extremely capital-intensive, requiring continuous funding.
- Intense Competition: The quantum computing market is highly competitive, with major tech giants (IBM, Google, Microsoft) and well-funded startups (IonQ, Quantinuum) vying for leadership.
- Execution Risk: Achieving milestones like scaling to 100+ qubits with reduced error rates requires significant technical execution. [1]
Outlook: Rigetti Computing is a key player in the race to build utility-scale quantum computers, with a strong focus on superconducting hardware and a full-stack approach. While its financial performance in terms of revenue remains modest and it continues to incur significant operational losses, the company’s strong cash position, strategic partnerships (especially with Quanta Computer), and consistent technical milestones (like Ankaa-3 and DARPA contracts) point to a long-term strategy focused on achieving quantum utility and fault-tolerance. [3] The Q1 2025 net profit, while positive on paper, underscores the importance of distinguishing between accounting gains and operational profitability. Rigetti’s future success hinges on its ability to translate its technological advancements and partnerships into substantial, recurring commercial revenue streams and to effectively manage its high operating costs as the quantum computing market matures.
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