The Allied breaking of Germany’s Enigma machine changed the trajectory of World War II. Today, Europe is in a race to leverage a more potent code-breaking technology — quantum computing — but it faces a significant shortage in the necessary software, reports 24brussels.
The potential of quantum computers to transform various sectors, including defense, healthcare, and chemicals, is becoming increasingly tangible as hardware development progresses. However, the accompanying software development is lagging far behind.
As experts, investors, and policymakers zero in on the software capabilities of quantum technology, they recognize that this innovation could revolutionize cryptographic systems, posing a challenge to digital security worldwide.
Despite numerous developers across Europe focusing on hardware solutions, quantum engineer and researcher Olivier Ezratty warns that the EU must prioritize software development. “If Europe overlooks the strategic importance of quantum software development, it risks falling behind in the global race,” he stated, highlighting that the current focus of the European Commission is overly oriented towards hardware.
Understanding Quantum Computing
Classical computers employ vast numbers of electrons to process data as binary bits (0 or 1), while quantum computers utilize single particles, such as atoms or photons, known as qubits, which can exist in multiple states simultaneously. This fundamental distinction allows quantum computers to solve certain problems with far greater efficiency than traditional computers, tackling complex requests within minutes instead of years.
Across the EU, various companies are advancing quantum hardware. For instance, Germany’s Toptica specializes in photonic lasers, while Finland’s Bluefors provides dilution refrigerators essential for cooling quantum systems to near absolute zero. Danish firm Sparrow Quantum produces photonic chips, and French startup Alice & Bob is notable for developing error-resistant quantum computing technologies.
IQM in Finland has gained recognition for its innovative quantum computers. Meanwhile, French cloud providers OVHcloud and Scaleway have integrated several quantum startup emulators into their platforms, enabling user-friendly development of quantum software at reduced costs. These cloud services are expected to extend access to real quantum computers soon.
Despite these advances, Ezratty maintains that the private initiatives alone are insufficient to ensure that European quantum development remains globally competitive.
Currently, while European firms are creating a comprehensive quantum hardware ecosystem, the essential software development needed to make quantum systems operational is significantly lacking.
In contrast, US tech giant IBM offers an open-source software kit, Qiskit, aimed at equipping developers with quantum programming skills. This initiative not only builds a competent talent pool but also fosters integration within early quantum ecosystems.
Other international players, including QC Ware (US), Riverlane (UK), Classiq (Israel), and Horizon Quantum (Singapore), are also developing their software tools.
Comparative Performance of the EU
So far, Europe has effectively financed quantum startups, but this trend may not continue, particularly when assessing investment opportunities beyond its borders. Public funds account for 51% of the EU’s quantum tech investments, as per a 2024 McKinsey study, compared to merely 2% in the US and 10% in the UK.
Historically, attracting private investment has proven difficult for EU companies. From 2001 to 2023, UK firms received 1.36 times more private funding in quantum tech than the entirety of the EU.
The European Commission has recognized this funding gap, noting that “[p]rivate investment is becoming the key differentiator between success and failure,” as outlined in its recently released quantum strategy.
Nevertheless, some EU quantum startups have successfully secured substantial funding. For example, IQM has raised €200 million, and Pasqal and Alice & Bob have garnered €140 million and €130 million, respectively.
However, when compared to funding rounds in the US, European investments appear modest. US-based QuEra recently completed a $230 million funding round, while Maryland’s IonQ raised $360 million.
“For companies now in the growth phase, the EU lacks specialized venture capital funds capable of leading later-stage funding rounds,” remarked Olivier Tonneau, founder of Quantonation, a French early-stage quantum investment fund.
To enhance investment, suggestions have emerged for the EU to relax regulations for banks, insurers, and pension funds to facilitate increased financing for quantum advancements, a topic the Commission has been contemplating following input from industry lobbyists.
