However, the report denies the onset of a "quantum winter," a period of scarce funding and little progress, asserting that the quantum industry continues to advance, albeit at a slower pace. The decline in funding is seen as part of broader venture capital trends. The shift in funding is attributed to the rise of generative AI, seen as a disruptive technology that can provide immediate value, while quantum technology is still in its early stages. Venture capitalists in America are reportedly avoiding risky bets on startups and instead focusing on more established technology companies.
Key takeaways:
- Quantum companies received 50% less venture capital funding in 2023 as investors shifted their focus to generative AI and avoided risky investments in Silicon Valley startups.
- Investment in quantum technology dropped from $2.2 billion in 2022 to about $1.2 billion in 2023, with an 80% decline in the US, a 17% drop in the APAC region, and a slight 3% growth in EMEA.
- The report denies that the quantum industry is experiencing a "quantum winter" of scarce funding and little progress, arguing that the decline in funding is part of broader venture capital trends and the industry continues to make progress towards useful quantum systems, albeit at a slower pace.
- Generative AI is seen as a more immediately useful and disruptive technology, leading to a shift in funding from quantum to AI initiatives and companies.