Quantum Computer Start-up IonQ Plans IPO via SPAC

By John Russell

March 8, 2021

IonQ, a Maryland-based quantum computing start-up working with ion trap technology, plans to go public via a Special Purpose Acquisition Company (SPAC) merger according to a report in today’s Wall Street Journal. The deal would value IonQ at $2 billion and make it the first pure-play quantum computing company to go public.

SPACs aren’t new but have recently become more popular. In this deal IonQ would merge with the ‘blank check’ firm dMY Technology Group. Here’s a quick description of the SPAC methodology from Investopedia:

“SPACs are generally formed by investors, or sponsors, with expertise in a particular industry or business sector, with the intention of pursuing deals in that area. In creating a SPAC, the founders sometimes have at least one acquisition target in mind, but they don’t identify that target to avoid extensive disclosures during the IPO process. (This is why they are called “blank check companies.” IPO investors have no idea what company they ultimately will be investing in.) SPACs seek underwriters and institutional investors before offering shares to the public.

“The money SPACs raise in an IPO is placed in an interest-bearing trust account. These funds cannot be disbursed except to complete an acquisition or to return the money to investors if the SPAC is liquidated. A SPAC generally has two years to complete a deal or face liquidation. In some cases, some of the interest earned from the trust can be used as the SPAC’s working capital. After an acquisition, a SPAC is usually listed on one of the major stock exchanges.”

The WSJ reported: IonQ “intends to file paperwork in about a week with the Securities and Exchange Commission to go public on the New York Stock Exchange through a special-purpose acquisition company deal valuing the combined entity at about $2 billion. The deal will need approval from the SEC and SPAC shareholders.

“If the deal goes through, IonQ will have raised $734 million in funding since its founding in 2015, including $300 million through its planned merger with dMY Technology III and another $350 million in private investment funding from Hyundai Motor Co.; Breakthrough Energy Ventures, an investment organization led by Bill Gates and focused on mitigating the effects of climate change; and others. The company also has raised $84 million in venture-capital funding.

Photo of IonQ’s ion trap chip with image of ions superimposed over it. Source: IonQ

“The money raised from the transaction will be used to help IonQ manufacture a quantum-computing machine that works at room temperature and is about the size of an Xbox videogame console, Mr. Chapman said. That would be significantly smaller than early-stage machines on the market today, without requiring the supercooling necessary to achieve quantum mechanical effects.”

Quantum information sciences, including quantum computing, has abruptly become hot after years of lukewarm percolation with accelerated government and commercial investment. Among the many different qubit technologies being developed (superconducting, spin, cold atom, photonic, etc.) ion trap has shown potential advantages because of its stability and potential use at higher temperatures. IonQ has said it will have a completed device in 2023. Other companies such as IBM, Rigetti, D-Wave, and Honeywell all have systems up and running now, although those systems are still most accurately described as research machines and not production systems.

It will be interesting to see if other quantum start-ups also go the SPAC route.

Here is dMY’s self-description from an earlier press release (Nov. 2020): “dMY Technology Group III is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an initial business combination target in any industry or geographic region, the Company intends to focus its search for an initial business combination on companies within the broader consumer technology ecosystem that are either consumer-facing or support the infrastructure of consumer applications (“apps”) with enterprise valuations in an approximate valuation range of $1.0 billion to $3.0 billion, though the Company’s search may span consumer software segments worldwide and may pursue a target outside its expected range. The Company intends to specifically focus on companies that have created, or enabled the creation of, compelling mobile app experiences with significant growth in segments such as gaming, entertainment, work productivity, e-commerce, dating, financial technology, and health and wellness. Companies developing disruptive and key enablement technologies for consumer-facing apps in these segments, such as artificial intelligence (“AI”), machine learning (“ML”), cloud infrastructures and quantum computing are also within the scope of this search.”

Link to Wall Street Journal article by Sara Castellanos, https://www.wsj.com/articles/quantum-computing-startup-ionq-plans-public-debut-in-2-billion-spac-merger-11615201201?mod=hp_lista_pos5

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Organizations Partner to Rescue Petabytes of Data from the Arecibo Observatory

April 21, 2021

The Arecibo Observatory in Puerto Rico stood as the world’s largest single-aperture telescope for more than half a century, its grandiosity earning it a turn as a major filming location in the James Bond movie GoldenEy Read more…

MLPerf Issues New Inferencing Results, Adds Power Metrics, Nvidia Wins (Again)

April 21, 2021

MLPerf.org, the young ML benchmarking organization, today issued its third round of inferencing results (MLPerf Inference v1.0) intended to compare how well various systems and accelerators perform inferencing on a suite Read more…

Cerebras Doubles AI Performance with Second-Gen 7nm Wafer Scale Engine

April 20, 2021

Nearly two years since its massive 1.2 trillion transistor Wafer Scale Engine chip debuted at Hot Chips, Cerebras Systems is announcing its second-generation technology (WSE-2), which its says packs twice the performance Read more…

The New Scalability

April 20, 2021

HPC is all about scalability. The most powerful systems. The biggest data sets. The most cores, the most bytes, the most flops, the most bandwidth. HPC scales! Notwithstanding a few recurring arguments over the last twenty years about scaling up versus scaling out, the definition of scalability... Read more…

Supercomputer-Powered Climate Model Makes Startling Sea Level Rise Prediction

April 19, 2021

The climate science community is tasked with striking a difficult balance: inspiring precisely the amount of alarm commensurate to the climate crisis. Make estimates that are too conservative, and the public might not re Read more…

AWS Solution Channel

Research computing with RONIN on AWS

To allow more visibility into and management of Amazon Web Services (AWS) resources and expenses and minimize the cloud skills training required to operate these resources, AWS Partner RONIN created the RONIN research computing platform. Read more…

San Diego Supercomputer Center Opens ‘Expanse’ to Industry Users

April 15, 2021

When San Diego Supercomputer Center (SDSC) at the University of California San Diego was getting ready to deploy its flagship Expanse supercomputer for the large research community it supports, it also sought to optimize Read more…

MLPerf Issues New Inferencing Results, Adds Power Metrics, Nvidia Wins (Again)

April 21, 2021

MLPerf.org, the young ML benchmarking organization, today issued its third round of inferencing results (MLPerf Inference v1.0) intended to compare how well var Read more…

Cerebras Doubles AI Performance with Second-Gen 7nm Wafer Scale Engine

April 20, 2021

Nearly two years since its massive 1.2 trillion transistor Wafer Scale Engine chip debuted at Hot Chips, Cerebras Systems is announcing its second-generation te Read more…

The New Scalability

April 20, 2021

HPC is all about scalability. The most powerful systems. The biggest data sets. The most cores, the most bytes, the most flops, the most bandwidth. HPC scales! Notwithstanding a few recurring arguments over the last twenty years about scaling up versus scaling out, the definition of scalability... Read more…

San Diego Supercomputer Center Opens ‘Expanse’ to Industry Users

April 15, 2021

When San Diego Supercomputer Center (SDSC) at the University of California San Diego was getting ready to deploy its flagship Expanse supercomputer for the larg Read more…

GTC21: Dell Building Cloud Native Supercomputers at U Cambridge and Durham

April 14, 2021

In conjunction with GTC21, Dell Technologies today announced new supercomputers at universities across DiRAC (Distributed Research utilizing Advanced Computing) in the UK with plans to explore use of Nvidia BlueField DPU technology. The University of Cambridge will expand... Read more…

The Role and Potential of CPUs in Deep Learning

April 14, 2021

Deep learning (DL) applications have unique architectural characteristics and efficiency requirements. Hence, the choice of computing system has a profound impa Read more…

GTC21: Nvidia Launches cuQuantum; Dips a Toe in Quantum Computing

April 13, 2021

Yesterday Nvidia officially dipped a toe into quantum computing with the launch of cuQuantum SDK, a development platform for simulating quantum circuits on GPU-accelerated systems. As Nvidia CEO Jensen Huang emphasized in his keynote, Nvidia doesn’t plan to build... Read more…

Nvidia Aims Clara Healthcare at Drug Discovery, Imaging via DGX

April 12, 2021

Nvidia Corp. continues to expand its Clara healthcare platform with the addition of computational drug discovery and medical imaging tools based on its DGX A100 platform, related InfiniBand networking and its AGX developer kit. The Clara partnerships announced during... Read more…

Julia Update: Adoption Keeps Climbing; Is It a Python Challenger?

January 13, 2021

The rapid adoption of Julia, the open source, high level programing language with roots at MIT, shows no sign of slowing according to data from Julialang.org. I Read more…

Intel Launches 10nm ‘Ice Lake’ Datacenter CPU with Up to 40 Cores

April 6, 2021

The wait is over. Today Intel officially launched its 10nm datacenter CPU, the third-generation Intel Xeon Scalable processor, codenamed Ice Lake. With up to 40 Read more…

CERN Is Betting Big on Exascale

April 1, 2021

The European Organization for Nuclear Research (CERN) involves 23 countries, 15,000 researchers, billions of dollars a year, and the biggest machine in the worl Read more…

Programming the Soon-to-Be World’s Fastest Supercomputer, Frontier

January 5, 2021

What’s it like designing an app for the world’s fastest supercomputer, set to come online in the United States in 2021? The University of Delaware’s Sunita Chandrasekaran is leading an elite international team in just that task. Chandrasekaran, assistant professor of computer and information sciences, recently was named... Read more…

HPE Launches Storage Line Loaded with IBM’s Spectrum Scale File System

April 6, 2021

HPE today launched a new family of storage solutions bundled with IBM’s Spectrum Scale Erasure Code Edition parallel file system (description below) and featu Read more…

10nm, 7nm, 5nm…. Should the Chip Nanometer Metric Be Replaced?

June 1, 2020

The biggest cool factor in server chips is the nanometer. AMD beating Intel to a CPU built on a 7nm process node* – with 5nm and 3nm on the way – has been i Read more…

Saudi Aramco Unveils Dammam 7, Its New Top Ten Supercomputer

January 21, 2021

By revenue, oil and gas giant Saudi Aramco is one of the largest companies in the world, and it has historically employed commensurate amounts of supercomputing Read more…

Quantum Computer Start-up IonQ Plans IPO via SPAC

March 8, 2021

IonQ, a Maryland-based quantum computing start-up working with ion trap technology, plans to go public via a Special Purpose Acquisition Company (SPAC) merger a Read more…

Leading Solution Providers

Contributors

Can Deep Learning Replace Numerical Weather Prediction?

March 3, 2021

Numerical weather prediction (NWP) is a mainstay of supercomputing. Some of the first applications of the first supercomputers dealt with climate modeling, and Read more…

Livermore’s El Capitan Supercomputer to Debut HPE ‘Rabbit’ Near Node Local Storage

February 18, 2021

A near node local storage innovation called Rabbit factored heavily into Lawrence Livermore National Laboratory’s decision to select Cray’s proposal for its CORAL-2 machine, the lab’s first exascale-class supercomputer, El Capitan. Details of this new storage technology were revealed... Read more…

New Deep Learning Algorithm Solves Rubik’s Cube

July 25, 2018

Solving (and attempting to solve) Rubik’s Cube has delighted millions of puzzle lovers since 1974 when the cube was invented by Hungarian sculptor and archite Read more…

African Supercomputing Center Inaugurates ‘Toubkal,’ Most Powerful Supercomputer on the Continent

February 25, 2021

Historically, Africa hasn’t exactly been synonymous with supercomputing. There are only a handful of supercomputers on the continent, with few ranking on the Read more…

AMD Launches Epyc ‘Milan’ with 19 SKUs for HPC, Enterprise and Hyperscale

March 15, 2021

At a virtual launch event held today (Monday), AMD revealed its third-generation Epyc “Milan” CPU lineup: a set of 19 SKUs -- including the flagship 64-core, 280-watt 7763 part --  aimed at HPC, enterprise and cloud workloads. Notably, the third-gen Epyc Milan chips achieve 19 percent... Read more…

The History of Supercomputing vs. COVID-19

March 9, 2021

The COVID-19 pandemic poses a greater challenge to the high-performance computing community than any before. HPCwire's coverage of the supercomputing response t Read more…

HPE Names Justin Hotard New HPC Chief as Pete Ungaro Departs

March 2, 2021

HPE CEO Antonio Neri announced today (March 2, 2021) the appointment of Justin Hotard as general manager of HPC, mission critical solutions and labs, effective Read more…

GTC21: Nvidia Launches cuQuantum; Dips a Toe in Quantum Computing

April 13, 2021

Yesterday Nvidia officially dipped a toe into quantum computing with the launch of cuQuantum SDK, a development platform for simulating quantum circuits on GPU-accelerated systems. As Nvidia CEO Jensen Huang emphasized in his keynote, Nvidia doesn’t plan to build... Read more…

  • arrow
  • Click Here for More Headlines
  • arrow
HPCwire