Rigetti Computing: The Quantum Race and the CEO's Cautionary Tale

In the high-stakes world of quantum computing, rigetti computing stands as a beacon of innovation and ambition. Founded by physicist Chad Rigetti in 2013, the company has been at the forefront of developing quantum integrated circuits and offering a cloud platform, Forest, that enables developers to write and test quantum algorithms. Under the leadership of Dr. Subodh Kulkarni, who took the helm in December 2022, Rigetti has made significant strides in scaling quantum systems and pushing the boundaries of what is possible in this nascent field.



However, the road to quantum supremacy is fraught with challenges and uncertainties. In a recent interview on Yahoo Finance’s “Opening Bid” podcast, Dr. Kulkarni offered a candid assessment of the current state and future prospects of quantum computing. He emphasized that while the field is advancing rapidly, it remains in the early stages, primarily focused on research and development. Dr. Kulkarni cautioned investors to manage their expectations, highlighting that immediate profitability is not anticipated in the near term.

The financial performance of Rigetti Computing for the fourth quarter and full-year 2024 reflects this strategic focus on technological development. Revenues for the three months ended December 31, 2024, were $2.3 million, while operating expenses for the same period were $19.5 million, resulting in an operating loss of $18.5 million. The net loss for the quarter was $153.0 million, which included $135.1 million of non-cash charges for the fair value change in the earn-out and derivative warrant liabilities. For the full year, revenues were $10.8 million, operating expenses were $74.2 million, operating loss was $68.5 million, and net loss was $201.0 million, including $133.9 million of non-cash charges.

These financial figures indicate that Rigetti is currently in an investment phase, prioritizing research and development over immediate profitability. The significant operating expenses and net losses reflect the company's heavy investment in technological advancements, such as the development of its 84-qubit Ankaa-3 system, which features an extensive hardware redesign enabling superior performance. Rigetti achieved major two-qubit gate fidelity milestones with Ankaa-3, successfully halving error rates in 2024 to achieve a 99.0% median iSWAP gate fidelity and demonstrating 99.5% median fidelity with fSim gates. This focus on technological development is crucial for Rigetti's market positioning as a pioneer in superconducting quantum computing.

One of the most significant developments for Rigetti in recent months has been its strategic collaboration with Quanta Computer. This partnership, announced on February 27, 2025, involves a commitment of more than $100 million each over the next five years, with both companies focusing on their complementary strengths to develop superconducting quantum computing technologies. Quanta will also invest $35 million to purchase shares of Rigetti common stock, subject to regulatory clearance. This collaboration leverages Quanta's manufacturing expertise and Rigetti's technological prowess, creating a synergistic partnership that could lead to faster innovation and market penetration.

However, Dr. Kulkarni's cautionary tone in the interview underscores the challenges and uncertainties that lie ahead. He stated that Rigetti anticipates reaching “quantum advantage” within three to five years, but clarified that this does not equate to immediate commercial success or explosive sales growth. The CEO's tempered expectations reflect a realistic assessment of the current state of the quantum computing industry, which is still in its infancy and faces significant technical and commercial hurdles.

In conclusion, Rigetti Computing's strategic focus on technological development and market positioning in the quantum computing industry is evident in its financial performance and recent collaborations. While the company's heavy investment in R&D and significant operating losses reflect its commitment to innovation, Dr. Kulkarni's cautionary tone serves as a reminder of the challenges and uncertainties that lie ahead. As the quantum computing race continues, Rigetti Computing has room to grow, but investors must be prepared for a long and uncertain journey.

Ask Aime: What are the next steps for Rigetti Computing in the quantum computing industry?