IonQ, Inc. (IONQ) Earnings Call Transcript & Summary

Amazing. Thank you all. We appreciate your interest. We appreciate your attending the session today. We appreciate your investors and your trust and what we're trying to execute here as a company. And if you're an analyst, we appreciate you following us as well. My name is Inder Singh. I joined, Niccolo, our CEO in the journey of making IonQ not only the pacesetter of the industry that he's made it, but also the only platform company in our space. My job today is to show this slide, which is a legal slide, there'll be a test, but also really to show you the agenda. We have an exciting day plan really afternoon plan for you. It's in 2 parts. On the left-hand side, you'll hear from a number of those leaders of the company about how we're doing and how we're executing, what our plans are, what our priorities are and how we plan to keep on innovating in each of these areas, whether it's in computing, in the security area and a number of things, frankly, that 3 years ago, people thought they're like 3 decades away. And here we are, it's real. And when we say Quantum is now, we mean it. You have customers that will be joining on the right-hand side as you see a number of panels to tell you what they're focused on, how they're using either the security solution from us or the computing solution from us or imaging from a space using AI. Amazing things that are actually happening I moved from the Board and to the company a year ago, actually this month, and the first Analyst Day was 1 week after I joined. This is the second Analyst Day. We have so much more to tell. Let me tell you that members of our Board are also here in this row kindly raise your hand and we're thrilled to have them. It shows you the engagement of the company, it shows the engagement of the Board and the importance that we place on making sure that every 1 of our constituencies, customers, investors, partners, board are all involved. And so I'm not going to give a long speech here. Essentially, all I want to do is tell you we think we have a lot of excitement to hear about the opportunities for networking at the end of the day, your tags have a certain color on them. It will just determine which of the 2 rooms you'll be going to. And some of you may be actually going to help bring the bell as well. I've done that a number of times. I may or may not join you in that endeavor as some analysts have asked me to do some Q&A with them instead. So welcome. Thank you. If you have questions, of course, without a Q&A. Please make sure [indiscernible] [Presentation]

It took us 7 months to get that deal closed, and it is hugely historic, and I'm excited about the fact that we are not only the largest quantum company in history, but we're the first one that is vertically integrated. And so I'm going to start my bit of this presentation talking about the phases of IonQ's growth. I'd be remiss how we're before doing so if I don't thank everyone that's worked so hard to make today possible, whether or not you're in an IR function or a comms function or events team or partner marketing team. This is slated to be easily our most exciting corporate event to date. It's our biggest one. And if you're watching at home, it's a packed house where we had to turn people away and all seriousness. And so next year, if you get a seat, you can probably scalp it and make a Fortune outfront the NYSE. We have a hugely distinguished and eclectic and frankly, powerful group in the audience today, and I'm really honored by everybody who traveled today. We have not only distinguished university professors and we'll hear from some of them later on. We have our founder in the audience. But we also have our friends from overseas who have traveled quite some ways to make it here. We have founders of public companies whose market caps are larger than ours at the moment. We have a hereditary prints from Europe. We also have a former ambassador and a former governor and of course, we are honored that Senator [indiscernible] is here with us, and we'll be hearing some more from him later this afternoon. So let's talk about the era that IonQ is announcing as having entered today. You've heard me in prior events talk about the fact that we built the world's first and biggest Quantum platform over the last couple of years. And you can see how our revenue has grown on an annual basis approximately. This year, even before SkyWater closed, we were on track to do the better part of $300 million of Quantum platform revenue. And SkyWater's merger with us marks the beginning of a historic era for IonQ and for our industry. Not only are we investing in driving merchant supply to accelerate the U.S. industry and our allies, but we're also speeding up our own road map because of this vertical integration. We are focused as a company on these 4 areas on our platform, computing, security, sensing. And of course, also our foundry, which is a new part of the family. You're going to hear a lot about our foundry capabilities this afternoon from my colleagues, not just Mihir Bhaskar, but Tom Sandman, who runs SkyWater to this day. And you're going to hear about application progress, not just from ourselves but from our customers. We have done what we said we were going to do in the last year and we've continued to deliver not just technical milestones, but commercial milestones that unlock applications that are hugely exciting. Now this page, I have to be honest, it's my favorite one. And I'm hugely proud of the fact that over the last 2 years, we have worked as a team to scale our company and deliver a Quantum platform that has a unique depth, breadth and scale advantage, not seen anywhere else in the industry. We do about -- before SkyWater, we did about twice the revenue of the whole rest of the sector that's public in Q2. And we're obviously not stopping here. Andrew is going to talk a bit later about our guidance uplift for the day. And you can see that IonQ will continue to outperform quarter-on-quarter as we have done since our IPO. A lot of work goes into revenue, and I don't want to underplay this because we're an industry that's always pioneering, always delivering [ technical ] milestones. But that's just the beginning of it, right? To have revenue, you've got to have a [ technical ] milestone a hit, a product that works, a customer that buys it. And of course, machines that are delivered that do useful things. We've been doing that longer than anyone in our sector. We continue to do it, and we're doing it, of course, at an accelerating rate. For those of you who haven't seen it, this is a big news day for us. We put out 6 press releases. Now during the course of the day, you're going to hear about each one of them. Some of the things I'm proudest of is not just the fact that we've quintupled our revenue year-on-year and not just the fact that we launched the world's first salt-tolerant architecture that [indiscernible] ready or [ working ] cap paper in April and not just that we're in 3 DARPA programs, HARC about time and, of course, QBI. But we've done exciting things on the interconnect and the networking front also. And we'll touch on that, just like we'll touch on what we're doing with Eric Correction, Fidelity, and Dr. Balanspeaks just after me. Now I'm going to talk for a second about our security organization and then move on to computing. We've been passionate believers in the need for quantum security for years now. And we have the largest security practice. My colleague, Jordan Shapiro will talk a bit later about this. But things are accelerating here and not just accelerating because of the industry as a whole are accelerating because, of course, what IonQ has done and announced this morning. I said this a year ago, Q-Day is coming and it's coming sooner than people think, and it's coming inside the planning horizon of a CISO, whether or not you are in a government position, federal position or an enterprise one. Classical AI is accelerating this trend and playing into it. So some of you might have seen that [indiscernible] had to land a lab leak, Open AI had a lab leak and Claude is going to town on some of the recommended PQC algorithms that are out there. This is not going to slow down as a theme. So if you are a CISO and you're watching today, you got to get ahead of this. IonQ offers defense and depth. We offer hardware and software solutions. We think this is going to be a race that accelerates and one that demands ever more investment to stay ahead of because the combination of what Quantum computers in the wrong hands and classical LLMs in the wrong hands can do is only going to make this trickier, frankly. So please call us, as you always say, you want a safe cracker to be the one who builds your safe. We have delivered this morning some news on the safe breaking front, if you will. You want to be working with us on the safe making front. And we offer unique defense and depth advantages for that. Moving now to our computing business. It's been a big year. You can just see how many systems we have deployed on-premise. You can see how many hours of uptime and computing that we've delivered through the cloud and how many customers we now have around the world. And this is a map that we are delivering to servicing customers on and, of course, doing better every generation to deliver customer satisfaction. That's now a big part of Lexicon, just like manufacturing upgradeability and accessibility is. We've been on the cloud since 2020, Amazon, Google, Microsoft. We are generally the biggest cloud partners in the quantum space and we expect this business to remain exciting, high margin growing quickly. Now Chris is going to talk a lot more about our road map. And hopefully, you all had a chance to walk by our models out front to action our models or actual chips out front of our generations of systems. What makes IonQ different is that we've been running for over 5 years in the cloud, we've been shipping systems for over 5 years, and our machines turned on in 2017. And so we have real applications in production today. We have more of them rolling out continually. And we, of course, were the first company to publish a complete fall tolerant shovel blueprint in April, which we're building upon today. My colleague Mihir is going to talk in a few minutes about progress that we've made also in the networking space. And we think not just about the next 2 or 3 quarters, next 2 or 3 years, IonQ we talk about the next 5 years, 7 years. And we see a huge opportunity for not just our machines to become more powerful in their own right, but an opportunity for us to deliver data center scale quantum computers. And we're doing this through progress on our photonic [indiscernible] and progress through our Quantum networking Quantum memory business that we acquired with [indiscernible] last year. This quantum application road map we rolled out last June, and I'm excited to announce that we continue to march right along. We are unlocking all the applications that we said we would last year. And you've seen these announcements it's computational engineering, whether it's logistics, whether or not it's image change detection, whether it's in the pharmaceutical space, we continue marching right up the curve year after year, and we believe we're just scratching the tip of the iceberg here. There will be far more applications than we can think of in advance as our machines roll out. And far more exciting applications we hope will be created by people building businesses and doing research with our machines at arm's length. Special call out for our Life Sciences colleagues. This is something near and dear to our heart at IonQ. We care about oncology. We care about predictive medicine. We care about personalized medicine, and we'll be talking a little bit more about that later on today. But obviously, in terms of what quantum computers are great at, modeling quantum mechanical things like materials and pharma is something that is a super power of ours. In April, we rolled out our walking cat architecture. And we're proud of the fact that it was shovel ready and done down to level of detail the world had never seen before. This morning, we announced the IonQ system with about 20,000 physical qubits could recover a 256 bps elliptical curve key. We didn't approximate. We've done this down to a level of detail that is historic. We've done it in a responsible way in partnership with our nation's government. And we've done it because we want to show people that the blocking and tackling belt embraces approach we've taken for 30 years now since our company was founded, continues to deliver results that are real, on schedule. And with huge implications for sectors like chemistry, material science and of course, the life sciences. I don't know about you guys, but for most of my time in the quantum computing space, I remember Electra [indiscernible] when I was in university, and I read Chris Manrose, paper in '95, '94, the first quantum logic gate and physicists tend to talk about superpowers. We talk about the superpowers that quantum computing can deliver. Those superpowers are beginning to roll out. And IonQ has a super team, and they've done super work with our super ions this year. And so without further ado, I'm going to close on our final announcement from this morning, which is we've rolled out our new Quantum computing platform line of products, which we've apply named Superion systems and Superion line. And we believe that that's appropriate because they are going to be the world's most powerful machines, pretty much every generation. I think we'll be more powerful per unit dollar per unit energy consumption per unit space, probably, in some cases, by orders of magnitude that you'll find anywhere else in the world. It's a system that is upgradable, a system that's accessible to the cloud and through sovereign systems and best of all, it's a system that's all being accelerated and all gone on to the SkyWater chips that we now very integrate with and our friend, Tom Sanderman runs. So let me show you this quick little video on Superion, and I'm going to hand this off to Dr. Chris Balance to tell you a bit more about it. Here to make these machines mass market. So we're focused on building our ecosystem, expanding our ecosystem and delivering these machines at an access point, price point, power consumption point, manufacturable space consumption point that hopefully, every company, every government in the world can invest in because of the fact that we do what we say we're going to do at IonQ. And we tell you the next generation of systems we'll roll out, and we'll go from 256 to 10,000 to 20,000, 200,000, we will do that. And we have done it for the last 30 years. We've done for the last 10 years as a private company. We're doing the last 5 or 6 years as a public company. So put my hands together for Dr. Chris Ballance, who's now going to tell us a lot more about this road map. Thank you for your time.

Good afternoon, and welcome to the 2026 IonQ Investor Day. We've got some incredibly exciting announcements to share with you today. You've heard from Niccolo about the superior platform I'm going to tell you how we came up with this, the core technologies inside of it, how this is changing the way we innovate in quantum computing and how this platform is going to scale from hundreds to thousands to millions of cubics. IonQ was founded to put quantum computers into the hands of users. And over the last 10 years, we've executed on that mission, over 5 generations of quantum computers. And this has taught us a tremendous amount. We've learned how to work alongside customers to tailor solutions to generate [ Welbilt ] value. We've learned about operational excellence and the good pain it's taken to build out these content computers, build out the supply chain, manufacturing and operational teams required to get quantum computers online and on the cloud. There's now a lot of hour goes by without a job running or crude on the irony quantum computer fleet, and we've deployed quantum computers around the world. This has taught us a tremendous amount. These are hard one lessons, unique insights that can't be learned any other way. And it's also taught us the challenges we still need to overcome to get to large-scale full-tolerant quantum computers. One, we need to radically simplify the platform. If we want to build out systems with orders of magnitude more cubits and deploy orders of magnitude more of them, which we definitely do. We need to radically simplify the platform. At the same time, we need to learn faster. We need to go from learning of the product cycles of years to product cycles of the months. And thirdly, we need to demonstrate scale. We need to build platforms, which generation after generation, build on each other to allow us to tackle problems that can't be tackled any other way. These are daunting challenges. And these are the challenges that the Superion platform is designed to tackle. First, radical simplification. Only the simple scales. We need to make our platform is manufacturable as deployable as possible to get out to the true scale we want, both in number of systems deployed and the number of qubits in those systems. Natural qubits, ions and the atoms have historically been controlled with lasers. This is a great technology for the 0 to 1 phase, getting the first hardware built in them up. It's challenging to mass manufacture. In the Superior platform, we replace these lasers for qubit control with electronics built into the chip, electronic qubit control. This allows us to take out this whole middle layer of laser control directly connecting our classical control electronics to our Quantum chip and allows us to build out these quantum chips in standard semiconductor ways. It also makes our systems more reliable by stripping out this complexity. We can manufacture these things at scale and eventually, we can drive up the reliability and the deployability. But this electronic qubit control alone is not enough. In the same way as there's a tremendous amount of technology that goes from a single LED to an LED pixel array a TV display. There's a tremendous amount of technology we've developed to go from a single unit cells to unit cell arrays. This technology we called Quantum Multiplex Ion. We built out an incredible unique pattern portfolio, IP around how we do this. What this is allowing us to do has to take these unit cells of electronic qubit control. These unit cells where we have achieved over 49 on the critical performance metric to qubit gate fidelity and take these into scaled out arrays of qubits. This is one of the core technologies between Superion and it's what allows us to control dense arrays of qubits at scale. And I'm pleased to say this is the picture, the first Superion 256 chip. We're already producing these devices at scale at SkyWater by the wafer and in parallel with doing that, we're building these devices into packet quantum processes just like this that sits at the core of our Superion 256 quantum computers. In parallel, we've been building out the physical footprint of these systems, the infrastructure that these quantum processes plug into. These are designed to be data center deployable to be mass manufacturable. Over the last year, we've gone from these basic technology demonstrations implementing this electronic cubic control with incredibly high fidelity, designing prototype chips that derisk different aspects of fab, different aspects of the technology, building the first prototype systems, the first prototype chips. Today, I'm pleased to announce that we now have ion qubits in these first prototype systems. Over the coming months, as we prepare to enter into production. We're doing a tremendous amount of work to put these and make these things real. I'm proud to say that we expect to have the first systems starting deployment on customer sites in early 2027. Over the last year, we've made some big strategic bets. We want to take the innovation cycles that are typical in the industry of years and we're striving to turn these into months. We think this needs to happen to hit the pace of innovation we want to achieve. We've made big operational changes to how we run the company, how we structure, how we develop our technology, how we run our teams to allow us to achieve this. And this is paying off. Over the last 6 months, we built more ion trap chips, ion trapped quantum processes that we have in the history of the company to date. The numbers speak for themselves. We are learning faster, we're iterating faster, and we're doing this over multiple generations in parallel. You're going to hear more details about this from [indiscernible] on demand next. To get out to true scale to millions of qubits deployed around millions of data centers, we need to build out a core platform that allows us to hit this scale, that allows us to tackle applications that can't be tackled any other way. And where each generation of the system teaches us about the next. The Superion 256 is the foundation of the Superion family and contains the core technology that gets us all the way out to scale. In parallel with this, over the last 6 months, we published our walking cat quantum error correction architecture. This is the most detailed full stack quantum computing architecture out there. And this carries on our theme of radical simplification. This paper shows from the hardware level to the quantum error correction level to the compiler and application level across the full stack, how we can significantly simplify everything involved in our quantum computers. For example, going from using multiple different types of quantum error correction code to 1 unified code, simplifying our architecture, simplifying our compute fabric, allowing us to scale faster. This working cat architecture and the compute fabric, we show in the 256 system takes us to our 10,000 qubit system. The big addition to this is integrated cryogenic CMOS to implement our Quantum multiplexed Ion. We already have the derisking of this CMOS built right now in SkyWater, and you can see some of the first wafers over in the display case. To get to the next scaling node, we tiled 2 [ dice ] together in 2.5D integration. And we carry on to hundreds of thousands of qubits by tiling out to more [ dice ] and by increasing the density of cubits on each time. This scaling pathway takes us from hundreds of qubits through thousand to millions and millions of qubits. This is a Superion product family. It's simple. It's scalable. It's mass manufacturable. And we're building this in our sovereign fab today. At IonQ, we work across the full stack of quantum computing. This gives us value that's well worth more than the sum of its parts. We work from silicon all the way through to solutions, and we're world-class innovators at every level of the stack. We've talked about the quantum processes. We've talked about the walking cat architecture. In parallel with all of this, in the last 6 months, we've demonstrated customized quantum error correction codes, running on real hardware with breakeven performance. At the same time as this, we're innovating across the classical software list too. In the last couple of weeks, we put out the first mega quantum operation, real-time decoding stack, tailored for our 10,000 cubic device, showing we can run this using efficient classical computation in parallel with our quantum hardware. And at the same time as doing all of this, we're working across the quantum solution stack. You're going to hear more about this from Chad in half an hour or so. But we've demonstrated time to solution speed ups on pure-play quantum algorithms. We've demonstrated speed ups of hybrid quantum computing snacks, tailoring quantum processes GPUs and CPUs working together to be better than each part individually. Working across this full stack gives us a virtuous cycle of innovation. It allows us to learn from every different stage. It allows us to see around corners, we can tailor our quantum solutions to our hardware. At the same time, we can tailor our hardware and our software to see around the corner because we know what's going to come in the next generation of quantum solutions. This gives us a virtuous flywheel of innovation that we can only get through working across the entire quantum compute stack. There's no better example of this than the result we've made public today. For the last 30 years, Shaw's algorithm has been the benchmark for scaled full-tolerant quantum computing. People have spent careers optimizing understanding, finding the nuances in how you approach these problems. Today, we've made public, the first full end-to-end compilation of Shaw's algorithm. This is not an estimate. We know exactly how many qubits we need for this. We know exactly the software we need to run this. We have the full model implemented down to every single physical operation we need to play on the device. In doing this, we've learned a tremendous amount. We've made improvements across the stack. For example, over a 30x improvement in our core error correction modules like CCZ factories. A result like this shows the IonQ full stack innovation flywheel paying out. Working at a level such as this, where we've made significant innovations across the stack, shows on the benchmark problem like Shaw's has been so well studied, shows that we can make innovations across the entire stack of full tolerant quantum computing. This shows the IonQ machine in action. The organizational machine were built. This shows the big strategic bets we've made over the last year paying off. This is the IonQ innovation flywheel in action. Thank you. I'm now going to pass over to Tom [indiscernible] to tell you all that [indiscernible]

Thank you, Chris. Good afternoon, everyone. It's an exciting time to be in the quantum industry and certainly an exciting time to be at SkyWater. Our industry has a long history of working with brilliant physicists like Chris and turning their ideas into reality. And one thing that has happened recently with the partnership between SkyWater and IonQ is we've moved out of the physics demonstration realm to now manufacturing at scale and a highly developed operation that will allow us to not only deliver the speed required to get the cycles of learning necessary to drive the road map that Chris just showed, but also the scale. Today, we have thousands, literally thousands of quantum wafers running our fab a 1/3 of those are tied to IonQ. What that means is we're designing for manufacturability. When it's time to run at scale, we will be ready. Now the challenge in our industry has always been how do you get from the lab to the fab, and SkyWater was literally created to solve this problem. We came up with this concept called a technology foundry and a business model called Technology as a Service that allows us to create the bridge over what's known as the valley of death, where lots of great technologies start out in the lab, but they just never make it to the fab. And that's because in a lab, you have ultimate degrees of freedom. You can experiment, try many different aspects in terms of what you want to accomplish in a fab that's a little bit more restricted. So SkyWater was lowly created to solve that problem. Instead of [indiscernible] other foundries today, there's really only 1 conventional foundry, that's TSMC and the specialty foundries, which were foundries that basically couldn't keep up with TSMC. So they chose to make other products. But again, products that required a lot of standardization, we took the opposite approach we embraced customization. We embraced the idea that innovators needed an environment where they could have their ideas not only created in a volume environment but also run at scale. So today, with the speed, accuracy and agility that we bring together, coupled with front-end manufacturing and advanced packaging, we now have a capability that doesn't exist anywhere in the world, and we've been doing it for over 10 years. Today, SkyWater is the capital THE, the only quantum foundry. There are others that are talking about it, but recognize that what we put in place has been part of strategy to not only create the environment but create the security that protects those innovations because our focus around Quantum isn't just as a commercial business, but also it's tied to national security. Quantum is sovereign infrastructure, and it's absolutely critical that SkyWater, IonQ and the Quantum foundry model that we created protect the IP for our customers and more importantly, protects our national security for things tied to the defense of our country. Now as Chris said, we have delivered exceptional performance since we began our partnership. And it's all about, again, speed and scale the speed in terms of the cycles of learning that we deliver, how fast we do them, but also the scale, those thousands of wafers allow you to do things in parallel, allows you to do rapid learning. And what that will continue to do is move the projections that Chris has provided to the left, that is our goal to continue to move the road map to the left, and we believe that we are well on our way to doing that. So in the end, it's all about speed, agility and expertise. SkyWater has created something unique in our business model. And again, I'll point out our first customer as part of our Technology as a Service was a quantum company. So we literally have decades, decade of experience doing this type of fabrication. And when we couple that with our advanced packaging solutions, the ability to scale and post Moore's Law realm is right in front of us. We have the capabilities in the front end in Minnesota, the capabilities in Florida. And as Chris has alluded to, it's all about scaling and tiling, which is heterogeneous integration. So we are ready to execute. The other thing is that SkyWater is a quantum foundry. We have 9 as of the announcement today with Quo lab, 9 different Quantum customers that are all working in SkyWater. So we aren't just driving IonQ's road map. We're literally creating an industry, a quantum foundry industry that will be foundational through the rest of this decade and beyond. So when you think about SkyWater, you think about IonQ, just remember that all roads for Quantum lead through SkyWater. With that, I'll turn it over to Jordan for the next portion of our presentation.

Good afternoon. Thank you, Tom. On behalf of all of IonQ, I know we are so thrilled to have you and the SkyWater team joining our ranks. The advancements you heard today from Chris and from Tom in our quantum computing side have implications not just for quantum computing, but also for quantum security. And today, we are seeing the convergence of 2 trends. The first is that the analysis of how many cubits you need to reach day or the day when a quantum computer will pose a threat to our critical infrastructure is coming down precipitously. Today, we announced 19,397 qubits is our requirement at IonQ. And it's this advantage of Quantum hardware and quantum software working together that are bringing that Q-Day threat closer than ever before. At the same time, we're seeing another trend which is that governments are pulling in their migration requirements for companies and organizations and leaders worldwide to be much sooner than originally expected. Most recently, in June, the U.S. executive order pulled in the migration timeline for the U.S. from 2035 to 2030. The result is that leaders today need to transition to quantum security now. And if they're not transitioning now, they're already too late. There is already risk today with what we call harvest now decrypt later, where adversaries are collecting encrypted data with the hope of decrypting that at a future date with quantum computers. So today, we already have exposure. But we also have the looming threat of Q-Day that is coming sooner and sooner. So today truly is the time to transition. The good news is that IonQ is providing that full stack quantum security platform, or as Niccolo called it, were the safe breakers and the safe makers. How do we do this today? Well, we offer customers quantum security posture management, or QSPM, which gives them visibility into their full infrastructure to determine where they are vulnerable to potential quantum attacks. Then we offer a CNSA 2.0 in this compliant solution that allows you to continue to update your infrastructure to be quantum secure. Whether that be using PQC or post-quantum photography and injecting that throughout your infrastructure or doing quantum key distribution, a physical solution that can expand your entire network, but especially where it matters the most and that uses the same core underlying quantum physics, quantum mechanics to protect your data sets from potential eves dropping. We then help you to orchestrate and manage those keys and evolve your solution architecture over time to what will be a changing standard of quantum security. We are not just building this technology, but deploying it today with customers. I'm so proud to announce today that we have signed a major agreement with congruity 360 for the enterprise rollout of Quantum Security in the U.S. To our knowledge, this is the largest deal of its kind in the United States, bringing Quantum Security to leading enterprises. But it's not just enterprises, it's leading health care systems, financial institutions government organizations and telcos, take, for example, Singtel and SK Broadband, where we've rolled out our quantum security solutions. This makes IonQ not just the most robust platform, but also the most deployed platform when it comes to commercializing quantum security and providing a solution to the looming threat of QA and HNDL. All of this is just one example of IonQ's Quantum platform at work. And it truly is a platform of different quantum technologies that converge to provide solutions that otherwise you would never have available. In the case of Quantum security, we understand the threats better than our competitors because we also have quantum computing as part of our business. Meanwhile, in the case of quantum computing, we offer the solution to the problem that we are also creating with having larger and more powerful quantum computers. And so this is a true example of IonQ's quantum platform coming together, and you see this across the company in different areas as our technology is converged. Take, for example, what we're doing in quantum networking. We previously announced that we were the first company in an enterprise setting to interconnect 2 different quantum computers together, 2 IonQ trapped ion systems with our partners at Air Force Research Lab or AFRL. We then have announced that we are providing AFRL with a quantum network for entanglement distribution that allows us to experiment with different modalities of quant computers on the same network in different quantum devices that can be connected together. Now we are working on the next step, which is to take our networks, which are fiber-based today, and leverage IonQ's optical communication technology to get off the fiber. In other words, to operate in free space. That's interesting because it unlocks the capability of quantum connections that are airborne and in the future, space-based. This is just one way in which we're leveraging IonQ's quantum platform to expand our quantum computing technology. But we're also seeing this happen the other way around. We're using our quantum computers to advance technology throughout the company. Today, for the first time, I'm able to share that we are using our quantum computers with our remote sensing part of the organization as well. IonQ captures on a daily basis, data from across the globe, synthetic aperture radar data or SAAR data. And when we look at those images, we can use classical conventions to try to understand what's happening in those -- in the data, but we can also use quantum computers to do an even better job of that. Today, you're seeing what is the first example to our knowledge of a hybrid quantum classical workflow with SAAR data, where we're taking IonQ's quantum computer. We're putting it in the loop, and we're processing data from our SAAR platform. You'll see in the orange circle here, an image of [ Miramar ] Air base where there's a structure changing between the first 2 images. The ground truth represents the actual change between the 2 images, the insight that you're looking for as an analyst. The last 3 images represent different models that are trying to assess that data. The first is run on an IonQ Quantum computer, and you can tell it's the best because it identifies the structural change. It looks closest to the ground truth image, and it doesn't have all the noise and the fuzziness of the classical models. This model is working better than classical. It enables us to have a level of insight that no other SAAR platform has today. Meanwhile, we're the only quantum computing company that has this great level of access to SAAR data to run our quantum computers one. Every day, we're looking at what technology is next IonQ's Quantum platform and what continues to distinguish ourselves as a company. Take, for example, the quantum sensing technology that we brought to IonQ. We produce, for example, the world's most accurate commercial clocks at IonQ. These are quantum optical clocks. We also produce time transfer devices, atomic revimitors that can measure the specific gravity at any point on the earth. Gyroscopes that measure inertial movement. And so we have a precise level of sensing that uses the same underlying quantum physics to build new devices and new capabilities, especially in the field of positioning, navigation and timing or P&T that is relevant in many enterprise and defense use cases. This technology is not just available at IonQ, it's world-leading. Our quantum clocks are 1,000x more accurate than the classical equivalent, best-in-class classical equivalent. And they lead the entire field in lists ensemble of clocks and that they're the best performing clocks that NIST has available today in this form factor. We are seeing the deployment of this technology as well. It's not just in a lab somewhere. We're able to deploy our quantum sensors at Sea, in space on the X-37B space plane, on land, in the air, et cetera. And so we're truly deploying our technology everywhere. Don't just take it from IonQ, you're seeing this from our partners across the entire Quantum platform. Our U.S. government customers are validating our technologies, whether they be our quantum computing platform with DARPA QBI, our quantum sensors, most recently, the $58 million agreement for the -- it's about time program, but also our networks and our space technology, recent contract with NRO as well on the space side. What this validates is that IonQ is not only leading in each individual technology, which we are but also that these technologies are converging, are coming together to offer unique solutions that only IonQ can deliver. That is the power of a platform that is stronger together. Thank you.

Thank you very, very much, Jordan. I spent several years in my career of being the Wall Street analyst. And I remember the things that I used to look at. I used to look at the company's technology? Does it have a road map? Does it have the investment dollars? Does it have staying power? Does it have positioning? But also I used to look at the management team. Do I believe, do I trust they can execute? Do they have a track record of execution. And I hope what you saw here today was a management team that has that. When I join Niccolo this mission, to help make this platform company into the pacesetter that he's made it. I take no credit for that. And also how much more we can accomplish here together as a team, he's pulled together an amazing team. And I'm hoping that through the day, the rest of the day, you'll see more and more of that. And I think the investor confidence that you will see will inspire you as well. When I joined the Board of this company and some of the Board members are here, we used to be a one product company. We were in quantum computing. It's a wonderful market. It's not my TAM number, but $148 billion TAM according to third parties. So every other quantum company that you are looking at virtually every other quantum company, is in that TAM. It's an attractive TAM. We are already the pacesetter. You've heard from Chris Ballance earlier about how we continue to innovate. We talked about the 256K chip and the 10-K chip, and it doesn't stop there. So we're happy to be in that market. We are the pace setter in that market. We don't intend to stop. We spent $1 billion roughly on Oxford Dionics and another $2 billion almost on SkyWater. So we've put in more than many governments have put into Quantum to actually make it happen and make it real. I'm thrilled to say also though, we are in many other TAMs. And I think you heard that from the speakers today. In quantum networking, which Jordan just talked about, we had a wonderful customer in Air Force Research Laboratory. They benefited from us in terms of what we created for them and then we learn from them, as you said. How to network to machines together, either next to each other or a distance. We also realize that as a responsible company, if we are creating machines that are so powerful that they go beyond what humanity has ever seen before. And by the way, when I joined, I never thought we'd be here this fast. But if you're creating machines that can -- as you heard, break encryption, you have to be responsible. You have to actually make sure that you're also providing security. So Niccolo and his vision of creating the mission of the company and the vision for the company as we saw it when he became CEO beginning of last year, decided it was important to have quantum cybersecurity, very different game than any cybersecurity you've seen so far, protecting against a quantum computer. We got into sensing. Certain government customers value the fact that you have sensing that doesn't get jammed. You've all heard about GBS getting jammed. You've all heard about how planes are walked off and land in the wrong place, bad things happen. That technology has become available broadly and is being used in conflicts more and more. So having things that are very accurate and precise as you just heard, but also that cannot be jammed. We wanted to bring that to the table, too. And then as I look at kind of the most important part that we just announced recently, which is making it all secure. Manufacturing it in a way where the quantum products we create, and over time, we'll do more and more with SkyWater. But computing to begin with, make it secure from design to engineering to manufacturing to delivery to the customer. They need to be able to trust it. And that's what a trusted fab brings for us. That's why it's worth having Tom and his entire team who have done this over years and years and have done it well and know how to scale, help us build the most powerful devices in every one of these categories. I haven't put a TAM up there for SkyWater. It's new. It's a huge [indiscernible] You see and you heard Tom describe it, the only quantum foundry at scale in the world, in the world. And so we're glad we use it. We're glad that others in the industry are using it as well. We don't talk about it much, but we sell components to other quantum computing companies that depend on us already to help them make what they're trying to make. In addition, we also manufacture some of what they need in the Sky water quantum foundry. So we intend to keep doing that. The adversary for us is not another company. It's a nation state probably or more nation states, right? Protecting I guess what quantum can do whether good and bad. As I think about the track record, remember I said, a real important part is, does the team execute? Do they say something and then do it? Do they beat what they said they would do. And this company has a track record of doing that. I joined when it was about $2 million of revenue and 1 machine and 30 people and a dream. And over the years that you see here through 2024, you can see the results for yourselves. It's not thick numbers yet, right? But it's actually demonstrating customers are buying what this company is creating. Last year, when Niccolo became CEO, we accelerated that. Yes, we acquired some companies, they brought some revenue. But as we've said every earnings call, we keep investing in the computing as well and make sure that stays our fastest-growing engine, and we're thrilled that it is still driving a lot of our growth, and we're thrilled that we have actually a portfolio of things that we can sell to a customer. And now we have SkyWater. This morning, we issued guidance for what we think SkyWater will add to our P&L for the rest of this year. So it's [indiscernible] We got approval on July 31, day before a couple of [indiscernible] for earnings. And so we were thrilled. And it happened in the time line. We said it would happen. We were thrilled to have that. We did not provide guidance at that time on our earnings call because it was just too recent. Today, we gave you some more color on it, and I'll share some additional color now. The point is end-to-end quantum everything. Think of this company as the one-stop shop for quantum, not just computing, yes, computing, of course. But when we talk to customers, sometimes they start with, I need their security first more and more, I'm hearing that more and more Niccolo is hearing that, more and more Chad in the back is hearing that. And you'll hear from some customers that talk about that, too. But we have a strategy to land and expand. So it doesn't matter where the discussion starts. There's a question of how many of the products they use. When we think about quantum computing, I think of two things. One is the computing power. I came from ARM, or makes efficient processors and computers. We are increasing from the ARIA to the Superion 10-K our Cubic system count 400x, 400 times. This is not taking it out to the 2 million machine one day, right? That's further out. I told my team and stop. Let's go with a couple of years of actions of what we've done. You can see those there, 3 years of machines that we've put into the market and 2 that are about to come into the market. And on the right-hand side, equally important. We can deliver the lowest cost per cubic. So the most amount of compute power at the lowest power. Anyone remember Moore's Law. This is Quantum Moore's Law. We also have machines that don't require a grid. It's not on the chart. It plugs into the wall. So you don't have to buy a nuclear power reactor to run the machine. We are privileged and proud now to have SkyWater and IonQ come together as 1 company called IonQ. Welcome to Tom and the entire team, some of you are in the back there, thrilled to have you here. This team now can go end-to-end secure, trusted fab. And SkyWater is the only trusted fab of scale in the United States. Others will follow. There have been announcements others will do it, too. Those others have said it'll get it done by 2029, perhaps, maybe a year earlier, I don't know. But I think where we are, and our goal is just to keep running faster and faster and faster and have the capital to do that. We think we continue to pace at the market, as I said at the beginning. We will give you color below those 2 categories. We will provide you on the left-hand side, as you can see, what we're doing in quantum hardware and in Quantum Services. What's on the left in quantum hardware is the computers we sell on-premises to a customer, and we're selling more and more of those. And seeing what happened in hybrid deployments an AI factory with a QPU next to it. On the right is quantum services. What's in there? The applications, the things that have run among the quantum computers in there as well as QCAS. So if someone doesn't want a machine, they just want to have cloud access to the machine, we do that too. And that's actually going faster than the computing business even and is even more profitable than many of the things we do. I'm thrilled out of that business. I'm thrilled to see the growth that's happening in that business. To the right, we'll provide some color on SkyWater going forward in that 2 buckets that you see there. CMOS semiconductor foundry, think of what SkyWater used to call it's Texas foundry. That is principally that Texas foundry. And the quantum foundry and ADAS technologies is where we manufacture our quantum computing devices and the chips that you saw that are around the room there as well as some of the most advanced things that only SkyWater can do for government customers over time that are clear to work on CP projects, things that you don't have a clearance not a lot to know. Things to go boom and other things. I'm not going to get into. This gives you a sense of the things that are in there. I'm not going to break out this level of granularity on our earnings calls. But I want you to have a slide that shows you where is your computer, where is your [indiscernible] and on the right, where is the quantum foundry, where is the advanced packaging that SkyWater used to talk about. I'm simplifying the number of categories that SkyWater had to a few. Just as on the left, I've given you color in terms of how we're doing internationally, commercially, et cetera, et cetera. We might do that on the SkyWater side. It's early days still. But the point is to have a limited number of things that you all can follow that makes sense to you and you can hold us accountable for. It's also important for us to demonstrate what happens when you take the consensus numbers for SkyWater, which is on the left, the $608 million. That is a consensus that existed on July 30, the day before the closing. And then on our second quarter earnings call, for those of you who listened, I said, of their revenue, $120 million comes from us. You see that on that left-hand chart. The bar in the middle is the result that SkyWater already reported for the first quarter and the second quarter. And frankly, an estimate for July still, they did not report their third quarter clearly. So 368 from the 608 is what they've delivered by our estimation. These are unaudited results so take them with that appropriate copy. On the right, therefore, is what's left. So for the 5 months that we will have owned them this year, they'll have delivered $240 million of revenue to us, of which, by the way, $70 million is from us, right? So I have to eliminate that at the appropriate level. I think you all understand that. But the bridge was important for you to see that, again, they have not guided for the year, so use [indiscernible] consensus, results delivered what we will see in our P&L. When I take that to $40 million and then I added to the guidance we've already given you for in IonQ previously, the $280 million to $290 million range, which we reaffirmed this morning. And as you know, this color we gave under that around organic growth and other things like that. When we had our Q2 call, you can refer back to the Q2 transcript. I'm not reaffirming all the granular details, of course. But in the press release this morning, we affirmed the $280 million to $290 million plus the $240 million from SkyWater that I just showed you, minus the $70 million elimination of revenue because we now own them, gives you the $450 million to $460 million range. I want to make sure that you had that granularity, a month and 2 basically are having gone through it. There are still some purchase price types of adjustments we'll be doing some noise level things. But as I look at the business and I look at this, this gives us a solid foundation for all of the things we have to do in our strategy and the financials that was SkyWater is delivering in terms of revenue and we're delivering legacy on, I don't want to call it legacy is actually the future. IonQ is pretty amazing, both sides of it. And we're happy to have them as part of the fold. Over time, we will focus on other things like EBITDA, and we'll give you more color on EBITDA. One month in, I can't give you that level of color when we report earnings and the auditors have gone through all the numbers, we'll be sharing more on EBITDA for you. We will continue to invest. Why? Because we are the pacesetter in quantum. We are the pacesetter. The industry is moving -- we're happy they're moving. We need the industry to emerge. One company does not an industry make. So we want the others to also succeed in their endeavors. They're still in that first TAM I was talking about, remember, we're the only 1 roof provider. Some have called it Amazon of this. I'd like to think of it as Cisco of Quantum. I worked in Cisco. It's like put the things together that work together. We are also addressing multiple markets. Important for you to remember. As you think about us, you can pigeonhole us into a 1 product company, but you'll be missing a big chunk of actually what we're delivering. The value to customers sometimes can be security. And security can open the door to a conversation that leads to compute use cases. Not everybody will buy sensing mind you. That's a national security customer probably. But we're tankering for everyone. We are also -- and I put it here in products that -- some of which have really attractive margins. And our goal as a company and Niccolo and I as leaders is to ensure that over time, we drive margins, EBITDA margins higher. Gross margin, some of you asked me about and gross margin sometimes doesn't always capture that. So we talk about revenue and EBITDA margin because that captures R&D and a bunch of other things. We spend more on R&D probably than most of our peers, I won't say combined, but most of our peers. We're also delivering quantum solutions, and you heard that a little bit from Jordan as well. the last couple of quarters and earnings calls, both Niccolo and I have talked to you about, we don't just sell products. We actually make products work together and sell a solution. A vector atomic clock on a space platform is one of the solutions. Using quantum computing to improve the imaging from a SAAR satellite is another one. And there are many more. So the proof points of the strategy that we had are now starting to flow in announcements. And the companies that have followed over the years and worked over the years, turned us into revenues and customers over time. We do have the strongest balance sheet. Our intent is to keep the balance sheet, the strongest balance sheet required for success, not too strong, certainly not to [indiscernible] I told you like we spend most -- more on quantum computing alone than entire governments think about our entire portfolio, we'll be investing in all of that. So Niccolo and I and the leadership team and the Board, we'll make sure that we have the ability to fund our innovation for many years to come. Like I want to make sure that we have cash flow available to us to be able to invest for multiple years. So we don't have to worry about that. That's how you make long-term strategy, come alive and deliver short-term results. And with our partners at SkyWater, we now have the only trusted fab and the only quantum fab in the world. Those are following our strategy, and they will follow us. We won't stop running. We're going to be the pacesetter, you have in the pacesetter. And the management team that you have, and you saw here are very focused on that. In each category, everything that they talked about, they intend to keep investing failing fast if it's not working, like having SkyWater allows us to do multiple prototypes at 1 time. Others can't do that. So we find out which one works and which one doesn't much more quickly. So a number of things come together under this platform. I'm not going to say that it's all easy, lots of execution is required, technology innovation at the frontier of technology is not easy. But if you're asking yourself what comes after AI, Quantum comes after AI. If you're thinking in quantum work with AI, we're making it happen today in hybrid solutions. So the thing that was Niccolo said, this is the ban, the things that was out in the 2030s or beyond in people's minds is here. Almost as closer now not quite almost. So we will keep investing to make sure this works. I remember selling quantum mechanics in engineering school, and like I'm not sure I understood everything and it was a good company. sand that you don't understand everything. It's okay. I understand how time space curvature happens. The gravity exists, Elon Musk has built a rocket to overcome gravity. We're building machines that use quantum mechanics. And you don't have to be a quantum physicist to invest in a quantum company. We wanted to have some Q&A. I probably want a few minutes over, but if my colleagues can join me, that would be great. Now if we run out of time, during the bell ringing cermony, if you still have questions, I'll be available to answer detailed questions as well.

All right. Okay. I think this is the first victim.

Thank you. Let you guys sit down? Or should I just shoot charge?

John McPeake at Rosenblatt Securities. Thanks for doing this guys. At what number of physical cubits does photonic Quantum interconnect become important in your road map?

I will take that. Thanks, Chris. So in our core compute road map, we can scale our well beyond millions of qubits. This is looking on a 5-year view. So right now, we don't believe we need photonic interconnects in the near term for that. the customers that like photonic [indiscernible] are typically not the customers who just want one big computer. They're doing things more than just that. They're connecting quantum computers with quantum networks. They're trying to work out how they push themselves so they can build out a fleet of quantum computers and then work out how to expand this 1 to other problems. Right now, on the core compute road map, we don't need photonic networking. It's a tremendously valuable thing to sell alongside our core quantum compute products.

Nehal Chokshi from Northland Capital Markets. Probably for Thomas, maybe for Chris, but the reduction in cycle time from 8 months to 2 months is absolutely astounding. I would love to get more insight on how you guys have achieved that. And I'm thinking 1 element maybe which lithography node, IonQ is working SkyWater with and what range of lithography nodes of SkyWater work with as well.

So perhaps I will start to tell you what I've seen of Sky water, and then Thomas can say how we actually make this happen. So to me, a lot of this is the culture, how the business works, semiconductors historically are low margin, incredibly high volume. I myself have spent a lot of time talking to foundries trying to explain that actually if they make fewer parts, they make a lot more money on them, you can multiply the numbers together and actually get a good value. That's a really difficult thing to get into the DNA of fab. What I saw, and I'll get technical briefly back tail end of last year, it makes an example of this. We had 2 different foundries are working with at the time. A major industrial foundry and SkyWater. The major industrial foundry and is pushing out the delivery time lines was in hardware by a couple of months, 6 months out since they had challenges with supply chain, getting in particular, chemicals to put in particular machines to deposit particular layers. SkyWater had the same challenge. We spoke to the SkyWater team on a Tuesday, and they said, our supplier is quoting us a month, that's nonsense. They didn't say nonsense these slightly future word. But their passion was clear. by 2 days after that by the third day, they found out a supplier in Korea had 1 in stock and worked out how a horse trade is what was out. And by Sunday, this was installed in a machine yielding results from us. Our other partner at the time was still giving us the 2-month slip on a 6-month time line. So to me, this is just an indicator of the cultural differences at play, the amount of hustle and the appreciation that innovation cycles at learning speeds really are the critical thing when you're trying to innovate at the frontier of technology like this.

Well side, Chris. I'll just add, and I think that's a very state question. We do this on 90-nanometer technology. You hear others talk about, one, 28 and below, and some people have been talking about 2 nanometer. That's ridiculous, the kinds of fabrication that we're doing in a 200-millimeter fab, very mature environment is very nicely adaptable to the kinds of innovations that Chris has -- so I think the cost per cubic you will see from SkyWater and IonQ continue to be industry-leading.

And Chris and I, when we did the [indiscernible] acquisition, we'll remember this, but -- there are other foundries that we're trying to be quantum foundries also, and we talked to one of them, I won't name them. And they couldn't move fast enough. They didn't quite understand what we needed. They didn't have a learning curve on quantum, hadn't done Quantum before. They asked they told us if they were blown away by the volume numbers we were talking about into the future years and they needed permission from the mothership, and they just moved too slowly. So one is like roboprototyping and getting things done in months. The other is no one else can really match it right now.

I had a couple of questions for Tom, if I can. So I think you mentioned in your presentation, you have 9 quantum compute companies. I presume one of them is IonQ. So from those other 8, what are the conversations been like with respect to their comfort in dealing with you as a foundry partner to making sure that you won't essentially handicap their road map. And -- and how much of a timely do you think you have vis-a-vis IBM Andrin or [indiscernible] Foundries QTS before they hit their milestones and become a real alternative to SkyWater?

Yes. So the whole quantum foundry model is really based on the foundry model, which is you manufacture parts for other companies and protecting IP is foundational to that. So the way we treat any customer as we compartmentalize the information, we do not cross-contaminate. And all of our customers, callable in the audience here should be 100% confident that their road map will not be impeded by the needs of IonQ. The ability for us to move fast with IonQ, who is our largest quantum company, allows those capabilities to be populated out across our other Quantum customers. So it's very much what the rising tide lifts all boats. We are creating a quantum industry. We're going to move very fast with IonQ. But all of our customers should have confidence that they're going to be able to take advantage of the capabilities we put in place. Regarding the competition, you never talk about the competition, but I will because frankly, it's a little bit -- it's marketing high, frankly. The ability to have a quantum foundry was exactly why SkyWater was created because the other foundry model is really we're creating the innovation capability that many of the companies we wanted to work with were talking about. So Anderon is out there. They bought HRL. But again, IBM sold their microelectronics business to Global foundries back in 2015. So if they want to get back into it, so will be at Global foundries, who I used to work at. But they have capabilities, but -- they are not an innovation engine. They are a scaled specialty foundry. They love standardization, we embrace customization. So it's just a different model. We're going to run -- so TSMC started the semiconductor foundry business. They're still the leader. We started the Quantum Foundry business, and we will be the leader. No questions asked. So we're going to run very fast, and I hope they can stay in step.

I have 2 simple questions. I have no doubt of scale up and the verifications. But I'm just wondering if you have scale out road map the bottoming interconnect Phase III and IV. -- from understanding Botninterconnect, Phase 4 is really, really complicated to make it. And also, the other thing -- so as we have the fabrication and short-term cycles, I believe we need to -- you need to have capabilities of portal manufacturing capabilities. So do you have any plan or kind of the capabilities prospective?

We did take that -- so I mean the capabilities we have between our Minnesota and Florida operations have more than enough capacity to deliver what we believe is required from Chris and his team on the compute side as well as Jordan and his team on the broader Quantum platform side. So again, these don't require the same scale as like a smartphone or even AI data centers, but they require lots of iterations, eventually products will go into volume manufacturing, and we will continue to innovate in parallel. When I was at AMD competing against Intel, we were always running 3 nodes in parallel. You heard today, we're running 5 devices in parallel. The ability to move with faster iteration just closes the gap between ideation and commercialization. And it's all about time to market. And I keep going back to, that's why we created the technology as a service model to innovate at scale and to create a model where companies could innovate. And it was great to see both Inder and Chris say, we looked at all the other foundries, and we chose SkyWater because it validates the model.

As a section on Quantum Foundry and networking actually when we're done here. So you'll get more today shortly.

And we intend to keep investing, obviously, in the Quantum foundry. Yes, Mahir will talk about it a lot more. But from a capital standpoint, we bring capital to the table that SkyWater needs to grow at Quantum Foundry. The -- again, I don't think of the others as competitors that are in that foundry they're part of the industry and the ecosystem that's going to exist in the future. They already are customers in some ways. And this is about accelerating our road map and our learning curve helps, frankly, the other players as well.

Quinn Bolton with Needham. One for Chris and then one. Chris, you mentioned you're starting to load the 256 QPU with Ion. I guess can you talk about -- when will you have enough data to talk about the fidelity, median gate fidelity across the 256 qubits in that how confident are you in hitting the fidelity? You talked about crosstalk being a technology that you've developed some technology that cross talk to maybe expand on that? And then for Tom, just can you just discuss plans for Fab 25? Does that stay sort of in quasi independent CMOS high-volume fab for non-Quantum customers? Or do you see a time where you might start to run some of the quantum wafers at Fab 25?

Okay. There's a lot of questions there. So I will try and answer them in order. I'll take the last. The net-net of this is that a tremendous amount of the work we've been doing over the last 12 months and that SkyWater has been assisting us with is building out lots of very fast term prototype devices to derisk each one of these different elements faster. This is what we call short leads. We want to learn each and [indiscernible]. We want to decouple them the way we accelerate our road map is by working across many different aspects of the technology in parallel, then integrating more and more of this. And in fact, over the society here, you can see a lot of the different short leaps that derisk different parts of the technology. So the result of all of that is that we feel very confident in achieving the ultimate integrated performance on these systems. A lot of the work now we're doing is on that integration and iteration. It's about building out and validating a production scale for these devices. And that's the work that's going on right now as we lead up to production and the start of deployment of the first [indiscernible] I'll hand over to Tom there.

So think of Fab 25 as part of our foundry ecosystem, and that gives us significant purchasing power, supply chain optimization. In many cases, we synergize between the different sites. And it's what Inder showed is our CMOS semiconductor foundry business, which we we'll continue to move forward. The complement of having a secure manufacturing facility in advanced packaging facility is important because that allows us to focus on the innovation side and also have a place where customers can migrate out of Minnesota fab into, say, a Texas fab. But from a quantum perspective, think of that being Minnesota and Florida. It's very conducive to the types of work that we're doing. And -- but it's semiconductor manufacturing is an expensive business and having the economies of scale that you get by having a buying facility as a nice balance to that. And again, it's all about lowering the cost per qubit.

And for us, it's a great -- I mean, we have not had to go into the Texas fab to do quantum. But there's optionality then what 1 gets when Niccolo and I were looking at the acquisitions. This is 1 of the things that went to the calculus of like, do we need to have more than 1 fab. Right now, it's being done in Minnesota. And Florida may be the next logical area to do the advanced packaging. I think Fab 25 to your question is like optionality that if you needed to use it for something else, you could, of course, you'd have to be tool it. So far, we have not.

Craig Ellis B. Riley Securities. Thanks so much to all of you for all of the insights today. I want to start with a question for Chris and then jump to 1 for Jordan. So Chris, as we look out to the end of the decade that your road map and we see the scale up to billions of cubics tiling gets really important. Can you help us understand the technology, competencies, you'll need to have to execute in that part of the road map where are we today and what we need to accomplish. And then Jordan, you wrapped up by stating that in the technology areas you focused on, there's more and more interest across those 3 areas, tell us more about how customers are engaging? Are you seeing it across geos? Is it more as a result of executive orders that hit in the U.S.? Just more insight on that would be helpful.

So the question I heard was on tiling what the technologies needed to do that, how do we derisk that. So first of all, I should say, and this is something I mean as a point of pride. It's not a quantum problem. It's an integration problem. When we look at what we need to do to [indiscernible] devices together, it's about diebonding with tight enough tolerances and a designing the transfer, which is an electrostatic phenomena, right? You're pushing physically pushing the qubits over the junction, designing the tolerances and like that. Where are at now, we have done thorough studies of industry standard tolerances, and we're comfortably within that. So we're not pushing the limit of any one thing we need to do. The challenge here is a classic technology system integration problem. How do we push up yields? How do we make the packaging boring? And how do we look at the value-added steps and order them such that we don't add a lot of value to the hardware before we go into low yields step. These are classic semiconductor industry problems. And these are the kind of things that SkyWater has put a lot of focus in understanding how to do. So the stuff that worries me on that is not any one technology risk. It's operational excellence, how do we properly understand the risks and how do we execute against doing enough in parallel to make that pouring. Right now, that is not a particularly exciting problem for us. And that, again, is high praise for me.

So Craig, I would say -- the story of IonQ is that we are greater than the sum of our parts. And that's really what you're seeing happen on stage today, in part through the conversations between Chris and Tom between SkyWater and IonQ but also across the platform. And you're right, customers are approaching us and asking not just for one part of the platform, but for integrated solutions. And that is virtually global in every country around the globe and virtually in every area, every industry that we're seeing customers come to us asking about integrated technologies and solutions. Take for example, just on the global side, we offer an incredibly compelling set of solutions to any sovereign nation that might want everything from advanced P&T to operate in GPS-denied environments, increasingly important in today's steopolitical landscape to the computing power that will change their economy for better in the future. And so sovereigns are interested, of course, in all forms of technology across quantum, but also in every industry, you have enterprises that are coming to us asking refrigerated solutions. So financial companies, for example, any financial services firm, we're in the heart -- financial heart here in New York. We are having conversations about financial applications of put computing. And then we're hopping over to the security team to talk to the CSO about Quantum Security or in oil and gas, we're talking about quantum chemistry solutions and also using P&T for finding new oil wells. And at the same time, working on quantum security as well for critical infrastructure that oil and gas has. So very frequently, we're seeing that IonQ is differentiated from any other company and that we offer the most robust set of quantum technologies in the world, and people come to us looking for joint solutions across that stack.

So we probably have time for about 1 more question.

- Just a quick question. You had made an acquisition of Nexus Photonics. Just wondering how that fits into the IonQ and SkyWater road map. And also for in there, I guess, -- how do you look at the 256 qubits systems? What are the pricing on that? And if you can give us some idea on how to look at fiscal '27, I guess, between the core IonQ and the SyWater site.

Let's have me here answer the next is question he's the next presenter, and he's going to answer a little more of these questions in depth. It was his baby.

All right. Can you okay, mic is active. So the Nexus Photonics acquisition is really another one of these one plus one equals 30 stories with SkyWater, right? SkyWater has the ability to manufacture and Nexus brings a proven category intellectual property capability for design and integration of integrated photonic solutions. So combining them together means we can take in particular, photonics solutions, which are required for most -- many modalities are quantum computing, quantum network and quantum sensing, whether it's ions, atoms, photonics, networks, sensors and take the complexity of hand-assembled systems and integrate those components on a chip. And I'll have a little bit more to say about that in my presentation as well. So Nexus really allows us where it has the first impact for us is really in our quantum sensing devices. Already, we're manufacturing more and more of these clocks and inertial navigation centers. Right now, a lot of these components are discrete. We're packaging them basically at the level that you can package these discrete elements, but there are still wires and things coming out. They're still hand assembled taking the most complex parts and putting them on a chip is what Nexus allows us to do.

And we have an example of 1 such photonic integrated circuit for our sensing unit, that's in the showcase over here as well.

So on pricing, obviously, I'm not going to go into a lot of detail in terms of pricing, but you could think about it as a candida of opportunity for us, right? We are lowering our own cost, starting with the lowest cost to begin with. And over the next few years, we need to make strategic decisions about how much of that margin we're going to keep and share with our customers, right? -- at the moment, by the time that Niccolo and I or any of the focus on the floor or around the room get to a customer, it's not a competitive situation, most of the time. They picked their modality already. They're going to choose this for this. It starts to become like a value story. What can you do from the use cases. And we for deploy engineers for to play developers to go from their cost side of their equation to the revenue side of their equation. When you do that, it stops being a price discussion. We also meet the customer where they are. If they don't want to buy the computer and the entire computer, we sell them to as if that's what they want. There's things you can do with 1 that you can't do with the other. So I know I'm avoiding your question. There is no other company with a 256K chip out there, period. For sure, there's nothing known with 10,000. And the number of logical qubits that will be delivered because of the ONTAP technology. This gives us an inherent advantage. So as we map out our next 5 years and think about investing for the next 5 years absolutely. Well, laser focused on ensuring that we deliver total cost of ownership advantage with the customer. and then margin expansion for us. successful dodge that pricing question.

All right. So Inder will be around during the bell-ringing ceremony, and we'll be back for a reception right afterwards, and I'll be there also. So Well, thank you all for your questions. I'm sure there's many more to come later on and we'll make sure we answer those. I'd like to move on now to here [indiscernible] going to talk about our quantum foundry and more on Integrated Photonics.

Well we wait for this to change over. So I didn't plant some of those questions in the audience. I am going to talk about what I'm obsessed about right now, which is scaling quantum systems, right? And we heard about scaling out, right, in the data center. And we also heard about integrated technologies, how you scale up the chips and move the complexity in today's quantum computers, networks and sensors into integrated circuits that can be manufactured. Those are the 2 things that I'm going to talk about. Last year, Dr. Monroe and I took the stage and talked about our photonic interconnects. This has been part of Ink's story about how we envision building large-scale really data center scale systems. And the reason it's part of the story is because it's how we build large-scale hyperscale technologies today. It's not just a mainframe. It's a network of modular interconnected systems. And really, the elephant in the room when it comes to quantum interconnects is that quantum interconnects are very slow. So to give you a sense, historically, we have benchmarks Quantum interconnect and units of Hertz, whereas the requirements for actually connecting quantum computers together to enable this vision is kilohertz. And so today, I'm very, very excited and very proud of the team to announce that we have met the milestone of building a photonic-based quantum interconnect that is above a kilohertz. And so this isn't just an incremental advance. This is really a step change, right? This means we can now connect quantum systems together fast enough to sustain distributed computation So we can actually think about addressing the scale-out problem and building not just technologies in the R&D lab, but technologies that will actually enable Quantum data centers. The second reason this is exciting is we didn't just reach this result by turning some knobs and making incremental advances. We actually took a fundamentally new approach, which we talked about last year. through the acquisition and integration of Light Inc.'s technology, which is a quantum memory. We took our quantum computing system, our trapped ions, and we connected it to this Quantum memory in order to really use a new architecture, a heterogeneous architecture a device optimized for computing and a device optimized for networking working together to create a system that's better than the sum of its individual parts. And this is really special for me. It may take a moment to sink in for everyone else. I mean many of you are sitting on your laptops, like we take this for granted every single day. We have technologies that are designed for certain things, CPUs, GPUs and networking cards. All talking together, all working together. But when we think about designing Quantum systems to date, we have not yet until this moment, successfully combined 2 different types of systems and got an improved performance. So this really marks maturity in being able to create heterogeneous technologies. It's why we're proud to be a DARPA HARC performer. It's exactly the subject of the [indiscernible] program. And we think this milestone applies not just to [indiscernible] systems, we're excited to truly build heterogeneous systems and think this will be the leading interconnect solution for all modalities. So dropped irons, dropped Atom, superconductors and more. So that's about scaling out, but there's also a lot that you've seen today about scaling up on chip. And I'm very, very excited to be stepping into a role working directly with Tom Sandman at SkyWater where we announced today that we are launching the industry's first dedicated quantum foundry platforms. And so while others have talked about a quantum foundry, Tom told you about how SkyWater has been actually delivering wafers for over a decade. You can see some of those wafers both here on the screen and also in the galley -- but what we're launching here is goes far beyond that. These are scalable and reproducible platforms that create an open ecosystem for quanticomputing companies, whether they're building Adam, ion, superconducting photonic or spin based processors, they need semiconductor solutions that are tailored to and designed for quantum signals. And so I want to unpack the 2 sides of this platform. There are really 2 distinct technology elements, and you only need to. There are only 2 physics ways to route quantum signals. It's light and it's super connecting electronics just like there's copper and fiber in the data center. There's really a quantum analog, and we have the world's only quantum platforms for semiconductor manufacturing. So the first one on Integrated Photonics. There was a question about how Nexus Photonics really fits in here. So I'm really honored and thrilled to be joined by luminary in the field of Integrated Photonics, Professor John Bowers. He pioneered the development of putting laser systems on a chip. And without that, we really wouldn't have the massive scale out of today's AI data centers, the optical interconnects that are connecting GPUs and computing devices. And the way to understand how this applies to Quantum is that Nexus has pioneered that same technology for putting quantum lasers on chip. And so on the left side of the screen here is one of our quantum sensing devices. As you can see, it's discrete components. They're integrated about as tightly as you can, but you can still see a jumble of wires connecting everything together. So the Nexus technology, the designs, the intellectual property, the integration know-how is what allows you to take that complexity and put it on a single chip at a fraction of the size, weight, power, cost and with much higher manufacturability and yield and reliability. And so Nexus brings the know-how, the expertise and SkyWater brings the prowess of being able to manufacture this all on U.S. soil. So this is the photonics side of the story. SkyWater also serves a number of customers that build superconducting technology and we're very, very excited today to also announce a partnership with a leading superconducting cubic company, co-lab, which is cofounded by -- and CTO of this company is Nobel Laureate, Dr. John Martinez. So instead of hearing it from me about how this works, we'd like you to hear a little segment from Dr. Martinez.