Will Rigetti's $5.8M AFRL Deal With QphoX Advance Quantum Networking?
Rigetti Computing RGTI has secured a three-year, $5.8 million contract from the U.S. Air Force Research Laboratory (“AFRL”) to advance superconducting quantum networking, marking one of the company’s most strategic government wins to date. The collaboration with Dutch startup QphoX, known for its single-photon microwave-to-optical transduction technology, positions Rigetti to solve one of the field’s biggest bottlenecks: linking superconducting qubits over long distances. If successful, the project could enable distributed quantum computing and secure quantum communication by bridging cryogenically cooled processors with room-temperature, optical fiber-based networks. This technical milestone would not only boost the scalability of Rigetti’s modular chiplet architecture but also reinforce U.S. leadership in the global race toward quantum Internet infrastructure.
Beyond the technical validation, the AFRL deal strengthens Rigetti’s credibility in winning high-value government contracts, which provide both funding stability and early adoption pathways for quantum systems. With over $425 million in cash reserves at the last quarterly update and no debt on its balance sheet, Rigetti has the runway to invest aggressively in multi-generation processor development while leveraging government-backed projects to offset R&D costs. The integration of QphoX’s technology could also accelerate Rigetti’s commercialization prospects by proving interoperability with emerging telecom-based quantum local area networks (QLANs).
For investors, this award underscores that Rigetti’s growth story is no longer confined to laboratory breakthroughs—it’s also being validated by institutional partners with strategic interest in operational quantum systems.
Peers Updates
D-Wave Quantum QBTS: D-Wave has been riding a wave of momentum lately, with its stock hitting new 52-week highs amid surging interest in quantum and AI. At its recent Qubits Japan 2025 event, the company unveiled the Advantage2 architecture and spotlighted a strong jump in bookings in the Asia-Pacific region. It’s a smart play: by leaning into its annealing niche and targeting optimization use cases, D-Wave continues to position itself as a more practical entry point into quantum for industry clients.
Quantum Computing Inc. QUBT: QUBT has recently made headlines by announcing an oversubscribed $500 million private placement, which will elevate its cash war chest to approximately $850 million post-close. The capital raise is specifically designed to accelerate commercialization, support strategic acquisitions, enhance engineering efforts, and expand sales.
On the technology front, QUBT has also been busy with its TFLN photonic chip foundry, securing repeated purchase orders and gradually moving toward a commercial photonic quantum footprint. What’s compelling for investors is the dual play: heavy cash backing plus visible progress in a differentiated tech stack (photonics). If execution holds, QUBT could offer asymmetric upside compared to peers built solely on superconducting or annealing platforms.
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This article originally published on Zacks Investment Research (zacks.com).
