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Nvidia S Jensen Huang S Quantum Pivot Cybernews

Bonisiwe Shabane
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nvidia s jensen huang s quantum pivot cybernews

Nvidia CEO Jensen Huang is making a big U-turn on quantum computing. After years of downplaying the technology's timeline, the tech titan is now pouring money into quantum startups. Some subscribers prefer to save their log-in information so they do not have to enter their User ID and Password each time they visit the site. To activate this function, check the 'Save my User ID and Password' box in the log-in section. This will save the password on the computer you're using to access the site. In May of this year I wrote about my belief that Jensen Huang was wrong about the quantum computing timeline, referencing his quote on the stage of CES earlier in the year that “practical...

By June he had reversed course (I’d like to think that was from reading my post, but more likely he had been seeing the same broad signals I was seeing) and at the GPU... Inflection point indeed - the quantum computing landscape has witnessed a dramatic shift over the past few weeks, with Nvidia's venture capital arm NVentures going full throttle on quantum. The AI chipmaker recently placed strategic bets on three distinct quantum hardware platforms: PsiQuantum, Quantinuum, and QuEra. This marks a complete reversal from Jensen Huang's earlier skepticism and signals that the world's most valuable company is now betting big on quantum's commercial timeline The Quantum Leap is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

This change in outlook wasn't just rhetorical—it was backed by serious capital. NVentures' rapid-fire investments in recent weeks represent the chipmaker's first major foray into quantum hardware, demonstrating what a strategic repositioning toward hybrid quantum-classical computing architectures. Nvidia's quantum investment strategy reveals sophisticated thinking about the technology's diverse pathways to commercial viability. Rather than placing a single bet, the company has strategically invested across three fundamentally different quantum computing approaches: Jensen Huang is having a bit of a quantum moment. The NVIDIA CEO, who just a few months ago pegged useful quantum computing as decades away, now says we’re on the cusp of a real breakthrough.

Speaking at VivaTech in Paris this week, he declared that quantum computing has reached an “inflection point”, and that practical applications could be here within years, not lifetimes. So what changed? And what does it mean when one of the biggest AI players in the world starts doubling down on quantum? Earlier this year, at CES in January, Huang dismissed near-term quantum computing as a pipe dream. His comments tanked quantum stock prices and drew some pointed rebuttals from quantum specialists and startup founders. But by March—just two months later—he began walking it back at NVIDIA’s GTC developer event.

Now, by June, he’s on stage in Paris confidently predicting quantum solutions will soon outperform even NVIDIA’s own most advanced AI systems for certain problems, in just a few years! As 2025 draws to a close, Nvidia is making a monumental strategic move, deploying a massive $25 billion war chest to solidify its commanding position in the semiconductor industry. The twin-pronged initiative involves a major agreement with AI startup Groq and a strategic stake in former rival Intel. While market analysts underscore the long-term significance of these maneuvers, the initial investor reaction was muted, raising questions about whether this represents the decisive play to outdistance competition in the artificial intelligence arena. Despite the scale of these announcements, Nvidia’s shares experienced slight pressure, closing at $188.22 on Monday, down 1.21%. The market appears to be digesting the substantial capital outlay, even though the company is funding the entire $25 billion from its ample cash reserves of approximately $60 billion, requiring no debt financing.

Market experts, however, view the strategy through a decidedly optimistic lens. Analysts from Truist and Citi have labeled the Groq agreement a “clear positive factor” for Nvidia’s sustained technology leadership, issuing price targets as high as $275. This implies a potential upside of nearly 50% from current levels, reflecting strong conviction in the long-term payoff. The centerpiece of Nvidia’s offensive is a comprehensive pact with AI specialist Groq, accounting for roughly $20 billion of the total commitment. The cash deal secures critical technology licenses and executes an “acqui-hire,” bringing key engineering teams—including founder and former Google TPU architect Jonathan Ross—into Nvidia’s fold. Should investors sell immediately?

Or is it worth buying Nvidia? At the GTC Paris developer conference, Nvidia CEO Jensen Huang shifted the tone of quantum discourse, declaring that quantum computing has reached an “inflection point.” It’s a marked departure from his earlier stance just... Now, Huang signals that hybrid quantum-classical platforms, along with the first wave of practical applications, are within reach. Financial markets responded with immediate enthusiasm. Shares in firms like Quantum Computing Inc., IonQ, Rigetti, and D-Wave surged by as much as 14% pre-market, fuelled by renewed optimism around the commercial viability of quantum systems. Huang’s statement is more than rhetorical.

It reveals a strategic pivot for Nvidia itself. The tech giant is deepening its investments through initiatives such as CUDA-Q, a software stack tailored to hybrid quantum workloads, and expanded partnerships with MIT-Harvard and Quantinuum, among others. This moment represents a broader inflection for global tech leadership, particularly at the executive level. Huang’s revised outlook compels boardrooms to re-examine their innovation strategies and R&D trajectories. The emergence of “AI factories” that blend GPU and QPU (quantum processing unit) capabilities is no longer theoretical. It’s becoming a strategic infrastructure consideration.

Companies like Siemens and Novo Nordisk, already aligning with Nvidia’s ecosystem, illustrate the growing appeal of early adoption in quantum-enabled domains such as materials science, logistics, and drug discovery. Despite the bullish tone, Huang remains cautious about timelines. He avoided concrete predictions, instead framing this period as a transitional phase where classical and quantum systems begin to converge in applied settings. For corporate leaders, this nuance is critical. It encourages a posture of readiness without overextension, promoting strategic engagement with quantum computing while acknowledging that large-scale disruption is still unfolding. Nvidia’s announcement signals a new chapter in enterprise computing.

For the C-suite, the message is clear: the quantum era is accelerating, and those who position themselves now, pragmatically but boldly, may soon lead the next wave of competitive advantage in the global tech... Daily stocks & crypto headlines, free to your inbox By continuing, I agree to the Market Data Terms of Service and Privacy Statement BING-JHEN HONG/iStock Editorial via Getty Images Last night, it was reported that Nvidia (NVDA) plans to buy the majority of Groq's assets, a leader in AI inference chips called LPUs, for $20 billion in cash. Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole.

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