DeutscheBank

Research

Distributedon:31/10/202305:26:05GMT

QuantumComputing:

TheMissingPieceintheAIPuzzle?

#PositiveImpact

CassidyAinsworth-Grace

cassidy.ainsworth-grace@

MarionLaboure,Ph.D-GlobalResearch

marion.laboure@

October2023

IMPORTANTRESEARCHDISCLOSURESANDANALYSTCERTIFICATIONSLOCATEDINAPPENDIX1.MCI(P)041/10/2023.UNTIL19thMARCH2021INCOMPLETEDISCLOSURE

INFORMATIONMAYHAVEBEENDISPLAYED,PLEASESEEAPPENDIX1FORFURTHERDETAILS.

CHARTBOOKonQuantumComputing:TheMissingPieceintheAIPuzzle?

OnOctober24,USstartupAtomComputingannounceda1,180qubitquantumprocessor,surpassingIBM's433qubitcomputer.

ThisfollowsAugustrestrictionsbyPresidentBidenonUS

investmentsinChinesetechovernationalsecurityconcernsaboutChina'squantumadvancements.

Part1–ThefutureofAIisquantumcomputing

QuantumcomputingisthefutureofAI,offeringfasterdataprocessingandimprovedtransparencyformachinelearningmodels.

Part2–Thecurrentquantumplayingfield

WhiletheUShashistoricallydominatedquantumtechnology

(measuredbypatents)andIBMremainsthecompanyatthe

frontier,othercountrieslikeChinaarerapidlycatchingup,creatingacompetitivelandscape.

Part3–What’snext?

Thewidespreadcommercialuseofquantumisnotexpecteduntil2035duetohardwareandsoftwarelimitations,butitsimportanceliesinaddressingthethreattoencryptionmethodslikeRSA.

…Allinaneasy-to-readPowerPointformat.

Source:DeutscheBank,TheFinancialTimes,BloombergFinanceLP,Reuters.

2

DeutscheBankResearch|QuantumComputing|October2023

WHATISQUANTUMCOMPUTING?Thetechnologythatwillsolve

problemsconsideredtoocomplexfortoday’scomputers

吁

-Quantumcomputinghelpssolvecomputingproblemswithahighdegreeofcomplexitybyrunningprocessessimultaneouslyusingqubits.

-Aqubitcanstoreaninfinitenumberofvaluesatthesametime.Conceptually,itissimilartoSchr?dinger’scat一bothaliveanddeadatthesametime.

-Quantumcomputersdonotworkserially(aseriesofthingsoneatatime)butinparallelsothattheycompletemultipletasksatthesametime一manymultiplesfasterthanaclassicalcomputerandtoday’sAlprograms.

-ThismeansthatquantumcomputersaremorecapableatsolvinganIimpossible’computerproblem,suchas

factorisationofalargeknownnumberintotwounknownprimenumbers(avirtualimpossibilityfortoday’scomputers).*

Classicalvsquantumcomputing

ClassicalComputingQuantumComputing

Informationstoredinbits

Informationstoredinqubits

Bitshaveadiscretenumberofstates:0or1

Qubitshaveaninfinite,continuousnumberofpossiblestates

Computingisserial,occurringinasequentialorder

Computingiscarriedoutinparallel

Behaviourisdefinedbyclassicalphysics

Behaviourisdefinedbyquantumphysics

Lowerrorratesandoperatesatroomtemperature

Higherrorratesandmustbekeptcold

Computingpowerincreases1:1withnumberoftransistors

Powerincreasesexponentiallyinproportiontoqubits

Source:DeutscheBank,AlphaSense,IBM.*ThiswasproposedbymathematicianPeterShorin1994,inwhatbecameknownasShor’salgorithm.

3

DeutscheBankResearch|QuantumComputing|October2023

NEWS:AUSstartuphasachievedaquantumcomputerwith1,180

qubits

-OnOctober24,AtomComputingannouncedithadbuiltaquantumcomputerthathas1,180qubits.IBMhadrecentlyreached433.

-ThisfollowstheAugust9USexecutiveorderonChinesequantumcomputingbyPresidentBiden,banningcertainUSinvestmentsinthreekeyindustriesinChina:(i)advancedsemiconductors;(ii)AI;and(iii)quantumcomputing.Therestrictionsareexpectedtocomeintoforcenextyear.

-ThisisnotthefirstUSrestrictiononChina’squantumcomputingindustry.In2021,theUSannouncedexportcontrolson8Chinesequantumcompanies.This

followedfromreports

thattheindustrypanel‘Xinchuangcommittee’lookedtoblacklistcompaniesthat

aremorethan25%foreign-ownedfromsupply-sensitiveindustries.

Timelineofquantumcomputingandsupercomputers

1995:ShorandSteaneindependentlyinvent

thefirstquantumerrorsolvingaproblemin2002021:TheUSannounces

19ia:facinsquatluterotqiatm.inIteistakena1l,ilamputerquatponutingintciuse

1980s1990s2000201520162017201820192020202120222023

19s:aisBfeiitoff1996:LovGroverquniterNationalQuantum202o:aIses2:pItrymC:pis

aui.insbeemGypdiSquaI'itersiIniteitUoAltwisinDetnt.achieves433qubits.compurbih1,180

algorithm,Grover'srespectively.becomesavailable

algorithms.onthecloud.

1994:'Shor'salgorithm'that

wouldallowaquantum

computertofactorlarge

numbersfasterthana

classicalcomputer.

卓

correctingcodes.1998:2qubitruiilQuantumsecondsthatwouldhaveexportcontrolson8ChineseAue:nionsues

Googlequantumcomputermadeamajorbreakthrough,

Source:DeutscheBank,NewScientist,TheFinancialTimes,BloombergFinanceLP,AtomComputingPressRelease.

4

DeutscheBankResearch|QuantumComputing|October2023

NEWS:ThiscomesasChina’squantumcomputingindustrybecomes

increasinglysophisticated,threateningcommonencryptionmethods

-OnOctober10,apaperinPhysicalReviewLettersannouncedthataChineseJiuZhang3quantumcomputerprototypesolvedahighlycomplexmathematicalprobleminonlyamillionthofasecond.Thesameproblemwouldhavetheoreticallytakenthe

fastestsupercomputer20bnyearstosolve.

-OnMay28,XinhuareportedthatChinahasreleasedanewgenerationofquantumcomputingcloudplatform,allowingresearcherstoperformcomplexcomputationaltasksinthecloud.

-Thetechnologycanpoolthequantumcomputingpowerofthreesuperconductingquantumchipsfeaturing136,18and

10qubitsataphysicaldistanceof50km.

-InDecember2022,apaperpublishedbyChineseresearchersstatedthattheyfoundamethodtobreakthroughthemostcommonformofonlineencryption,theRSAalgorithm.*

Numberofpatentsin‘quantumcomputing’bytop5companies(2010-2022)

IBM

Google

Microsoft

Intel

OriginQuantum*

02004006008001,0001,2001,4001,6001,800

$150

$130

$1,537

$2,451

Source:DeutscheBank

,SouthChinaMorningPost

,

Xinhua

,WorldIntellectualPropertyOrganization,Chenetal(2022),‘Factoringintegerswithsublinearresourcesona

superconductingquantumprocessor’,accessed

/abs/2212.12372

.*RSAreliesonprimefactorisation.Itisrelativelyeasytomultiplytoprimenumbersbutfactoringaverylargesemiprime(hasexactlytwoprimefactors)issignificantlymoredifficult.Updated30October2023.

5

DeutscheBankResearch|QuantumComputing|October2023

CORPORATES:Companiesareincreasinglyinterestedinquantum

computing

-Thenumberofmentionsof‘quantumcomputing’incorporatedocumentshasincreasedfrom111in2015to3,365in2022,anear30-foldincrease.

-IBM,QuantumComputingInc,AlphabetandSamsungarethecorporatesmostinterestedinthefield,respectively,whencountingthenumberofcorporatedocumentspublishedonthetopic.

Numberofmentionsof‘quantumcomputing’incorporatedocuments*

3,500

3,000

2,500

2,000

1,500

1,000

500

0

20152016201720182019202020212022

Source:DeutscheBank,AlphaSense.*CorporatedocumentsincludeonlycompanydocumentsandcompanytranscriptsaccordingtoAlphaSense’sdefinition.

6

DeutscheBankResearch|QuantumComputing|October2023

“

Youprobablyshouldhavestartedyearsago.Ifyouwaituntilthelastminute,whenit’sclearquantumcomputerswillbebuilt,youwillprobablybetoolate.

-PeterShor,inventorofShor’salgorithm,apivotalquantumcomputer

algorithm

7

1.ThefutureofAI:QuantumComputing?

DeutscheBankResearch|QuantumComputing|October2023

“

NEXTGENERATIONAICOMPUTINGINFRASTRUCTURE:Quantum

essentialtoaddresstwokeyAIchallenges:(i)computedemand;and(ii)transparency

-TwokeychallengesfacingAItechnologytoday:

-(1)Efficientlyandsustainablyprocessingincreasingvolumesofdata

-(2)EnhancingthetransparencyofAIprocesses

-Forsomeapplications,switchingentirelyfromclassicaltoquantumcomputinginfrastructurecouldaddressthesechallenges.However,inothercases,ahybridmodelcombiningbothapproachesmayprovemoreeffective.

-A2021studyfoundthatsupplementingaclassicalcommunicationchannelwithaquantumchannelalloweda

reinforcementlearningAItolearnover60%fasterthananon-quantum-enabledThisdemonstrateshowintegratingquantumcapabilitieswithtraditionalcomputingframeworkscansignificantlyimproveAIperformance.

Numberofquantumcomputingprivatestart-ups(cumulativeto2023YTD)*

70

60

50

40

30

20

10

0

USCanadaUKGermanyFranceJapanSpainChinaNetherlandsIndia

/articles/s41586-021-03242-7

.*Asdefinedby‘AboutUs’descriptionofrelevantstart-up.Note:Numberofstart-upsmaynotbecomplete.

Source:DeutscheBank,companywebsites,Asenbecketal(2021),‘Experimentalquantumspeed-upinreinforcementlearningagents’,Nature591,pp.229-233,available

8

DeutscheBankResearch|QuantumComputing|October2023

1.COMPUTINGPOWER:AsAIsystemsgrowmorecomplex,they

requiregreatercomputingpower,oftenattheexpenseofaccuracy

-Classicalcomputersmustincreasememorycapacityasmoredataisadded.

-Thecomputepowerneededtotrainmodernmachinelearningmodelshasmultipliedexponentially,asmeasuredinfloatingpointoperationspersecond(FLOPS),despitealgorithmandsoftwareoptimizations.

-Increasingmodelsophisticationthroughaddedcomputingpowercanreduceaccuracy.

-QuantumcomputingcouldenhanceexistingAIbyenablingquantummodelstoincorporatemoredatawithoutexpandingmemory.Quantumcalculationsrunsimultaneously.

-Quantumisalsomoreefficientforkeymachinelearningtaskslikeclassification,regression,andprincipalcomponentanalysis.

PetaFLOP*

Computationalpowerrequiredtotrain‘notable’AIsystems

●VisionLanguageeGamesSpeechoMultimodaloDrawingOther

Minerva(540B)AlphaCode

MSRA(C,PReLU)

GoogLeNet/InceptionV1

10

NPLM

0.01

0.000011E-081E-111E-14

Jan1941Oct1954Jun1968Feb1982Oct1995Jul2009Mar2023

Source:DeutscheBank,

OurWorldinData

,OECDLibrary,

UniversityofManchester

,

TechMonitor

,

FuturePayments:AI&TheFiveWs:Why,What,Who,When,Where?-Deutsche

1E+10

10000000

10000

PerceptronMarkI

●●●

Neocognitron

NetTalk

LeNet-5

System11

FuzzyNN

ADALINE

BankResearch()

.

9

DeutscheBankResearch|QuantumComputing|October2023

1.COMPUTINGPOWER:By2040,theworldwillnolongerhavethe

capabilitytopowerallitsmachines,includingAImodels

-Energyuseforpoweringcomputersanddatacentershasrisendramatically,withdatacenterelectricityconsumptionincreasingfrom200TWhin2015toanestimated340TWhin2022.Theworldisnearingthelimitsofenergyefficiencygainsusing

classicalcomputingalone.

-Datacenterenergyusagehasgrownbyasmuchas70%(upperestimate)since2015.Combinedelectricityusageby

majortechcompaniessuchasAmazon,Microsoft,Google,andMetadoubledfrom2017to2021,reaching72TWhlastyear.

-TheSemiconductorIndustryAssociationpredictsthatby2040,theworldmaynolongerhavesufficientenergycapabilitiesandresourcestopowerallofitscomputinginfrastructureusingtraditionalmethods.Withquantumcomputing,theworldwilllikelybeabletodesignprocessorsthataresignificantlyfasterbutuselessenergythantoday’sclassicalcomputers.

TWh

Annualelectricityconsumptionfortop30countries,andglobaldatacentres(TWh)**

8,000

6,000

4,000

2,000

0

Source:DeutscheBank,OECD,

OECDDigitalEconomy

,

InternationalEnergyAgency

,CambridgeCentreforAlternativeFinance.*Thisdoesnotdisaggregatetheelectricityuseofartificialintelligencefrombroaderdatacentreelectricityuse.**Dataforcountriesisfor2019,forglobaldatacentresisfor2020.***Globaldatacentreenergyuseexcludescryptocurrencymining.

10

DeutscheBankResearch|QuantumComputing|October2023

2.AITRANSPARENCY:Quantumiskeyforovercomingthe'BlackBox,

dilemmainAI

-Understandingthedecision-makingprocessofAIsystems,oftenreferredtoasthe'blackbox,'remainsasignificantchallenge.Eventhecreatorsofthesemodelsfrequentlystruggletocomprehendhowvariablesarecombinedtogeneratepredictions,andeveniftheinternalworkingsareknown,theymaylackinterpretabilityforhumans.ThisbecomesparticularlyproblematicasAIbecomes

increasinglyintegratedintovariousindustriesandisentrustedwithhigh-stakesdecision-making.

-However,theemergenceofquantumcomputingoffersapotentialsolutionbyenablingthedevelopmentofexplainableAImodelsthatyieldmorereliableoutcomes.

-Quantumcomputingdemandsamorepreciseclassificationofdata,enhancingdataintegrityandconsequentlyimprovingthereliabilityoftheoutput.

-Thistechnologyallowsfordatarepresentationinamoreinterpretablemanner,reflectinghuman-likedecision-makingthatconsidersmultiplestates,paradoxes,andpossibilitiessimultaneously.

%ofUSadultswhosaythattheincreaseduseofAIcomputerprogramsindailylifemakesthemfeel…

37%45%

18%

MoreconcernedthanexcitedMoreexcitedthanconcernedEquallyconcernedandexcited

Source:DeutscheBank,Andersonetal(2022),‘AIandHumanEnhancement:Americans’OpennessisTemperedbyaRangeofConcerns’,PewResearchCenter,WashingtonD.C.

(March17,2022),

/internet/2022/03/17/how-americans-think-about-artificial-intelligence/

11

DeutscheBankResearch|QuantumComputing|October2023

EXAMPLE:NVIDIAhasannouncedanewprojectaimingtoimprove

theperformanceofAIGPUsusingquantum&classicalcomputing

-NVIDIA’sCUDAQuantumplatformisonesuchproduct,enablinghybrid-classicalsystems,interoperablewithmodernGPU-acceleratedapplications-thesearethebackboneofgenerativeAIplatformslikeChatGPT.

-AnothersuchprojectisbeingundertakenbyapartnershipbetweenNVIDIAandOrcaandinvolvescombiningNVIDIA’sGPUswithOrca’squantumprocessingunits(QPUs)toscaleuptheperformanceofgenerativeAIalgorithms.Theyfoundthatusinga

combinationofaphotonicQPUand8GPUsmoreefficientthanusingtheGPUclusteralone.

-InMarch2020,GooglelaunchedTensorFlowQuantum,aquantumAI-hybridplatform.

ShareofworldwidediscreteAIGPUshipments

Nvidia

AMD

Intel

100%

80%

60%

40%

20%

0%

2019

2020

2021

2022

OperationoftheNVIDIAhybridsystemofclassicalandquantumcomputing*

Source:DeutscheBank,

Statista

,BloombergFinanceLP,NVIDIAcompanyreportsandpressreleases..*

ImagetakenfromNVIDIAcompanypressrelease

.

12

DeutscheBankResearch|QuantumComputing|October2023

2.Thecurrentplayingfield

“

Quantumremindsmealotofthesemiconductor

industryinthe1950s.Ifyoulookitup,thebigwinners—withtheexceptionofmaybeoneortwolikeTSMC—hadtheirrootsinthatverybeginning.Theylearnedwhattouseandhowtouseit,theylearnedhowtoscaleit,they

learnedhowtomanufactureit.

“

-ArvindKrishna,CEOofIBM

13

DeutscheBankResearch|QuantumComputing|October2023

INNOVATION:Significantadvanceshavebeenmadeinthelastsix

years,buttodayquantumisresearch,notproduction

-Thehighestnumberofquantumbitsinasinglecircuit-basedquantumprocessorovertimeincreasedfrom5qubitsin2016to

433qubitsto2022.AtomComputinghasjustachieved1,180qubitsin2023.

-Thebreakthroughprocessorthatbroughtquantumcomputingto433qubitswasthereleaseofIBM’s433qubitOspreyprocessorinNovember2022.

-Thisisatriplingfromthe127qubitsIBMEagleprocessorreleasedin2021.

-IBM,initsdevelopmentroadmap,aimstohaveaquantumcomputerwithprocessingpowerof4,158qubitsby2025.

QuantumbitsperprocessorbyIBM

4,000

3,000

2,000

1,000

0

2016201720182019202020212022202320242025

QuantumbitsperprocessorEstimatedunderIBMroadmap

Source:DeutscheBank,IBMAnnualReporttakenfromAlphaSense,AtomComputingPressRelease.

14

DeutscheBankResearch|QuantumComputing|October2023

INVESTMENT:ChinaandtheEuropeanUnionareoutpacingall

othermajorquantumscienceplayersintermsofpublicfunding

-Totalglobalquantuminvestmentincreasedfrom$59mnin2012to$2,171mnin2022.Thespikeinactivityin2021and2022wasdrivenbycompaniesoutsideoftheUSreceivinglargeramountsoffundingduringSeriesAandBrounds.

-AccordingtotheWEF,over2/3ofallequityinvestmentsinquantumcomputinghavecomesince2018,and92%ofquantumcompanieshavebeenfoundedinthelast10years.

-ThecountriesandeconomiesthatalreadyhaveleadingquantumR&Dclustershaverampedupinvestmentinthefieldtoimprovetheirstandinginthisstrategicindustry.

-TheWEFestimatesthatpublicinvestmentsinquantumtechnologiesin2022hit$30bnglobally.Itislikelythatthisisanunderestimationduetothesensitivityofthisfieldtonationalsecurity.

-ChinaandtheEuropeanUnion-thenationalpolicyandthepan-EuropeanQuantumFlagshipprogram-outpacedallotherplayersintermsofpublicfundingin2022,hitting$15.3bnand$7.2bnrespectively.

Europeancommissioninvestmentinquantum*

1,000

800

600

400

200

0

2021Value2022Value2030Target

Numberofquantumstart-ups,spinoffs,incubators,publicprivatejointventuresinEurope

250

200

150

100

50

0

2021Value2022Value2030Target

Source:DeutscheBank,WorldEconomicForum,

QuantumFlagshipProjectoftheEU

,Aydinogluetal(2022),‘Thelandscapeofthequantumstart-upecosystem’,EPJQuantumTechnology,

9,ArticleNumber27.*Totalamountofventurecapital,corporateseed-fundingandEUpublicinvestment.

15

DeutscheBankResearch|QuantumComputing|October2023

INVESTMENT:UndertheNationalQuantumInitiativeannouncedin

2018,theUSquantumsciencebudgethasdoubledsince2019

-TheUSquantuminformationscience(QIS)budgethasroughlydoubledsincefiscalyear2019,largelyacceleratedbytheNationalQuantumInitiative(NQI)Program,representingincreasedandsustainedinvestmentinthetechnology.

-TheNQIincludedthefoundingoftheQuantumEconomicConsortium(QED-C)tosupportdevelopmentofaquantumsupplychain.

-IncreasesinQISinvestmenthavealsofollowedfromtheNationalSecurityMemorandum-10releasedinMay2022andthe2022CHIPSandScienceAct.

-TheNQIActbecamelawin2018,withtheaimofprovidingacoordinatedFederalprogramforquantumR&D,includingincivilian,defenceandintelligencesectors.

-TheNQIActprogramareasinclude(i)quantumsensingandmetrology;(ii)quantumcomputing;(iii)quantumnetworking;(iv)QISforfundamentalscience;and(v)quantumtechnology.

USquantuminformationscience(QIS)R&Dbudgets*

900

700

$mns

500

300

100

-100

BaseNQI

FY2019ActualFY2020ActualFY2021ActualFY2022EstimatedFY2023Proposed

Source:DeutscheBank,

TheWhiteHouse

,‘Nationalquantuminitiativesupplementtothepresident’sFY2023budget’,bytheSubcommitteeonQuantumInformationScience,January2023,

/wp-content/uploads/2023/01/NQI-Annual-Report-FY2023.pdf

*TheportionofeachbarmarkedNQIidentifiesfundingallocatedfortheNationalQuantumInitiative

Actauthorisedactivities,ontopofthebudgetsforbaselineQISR&Dactivities.

16

DeutscheBankResearch|QuantumComputing|October2023

INVESTMENT:TheEUaimstohaveitsfirstcomputerwithquantum

accelerationby2025,andtobeatthefrontierby2030

-InMarch2023,theUKannounceda￡2.5bninvestmentplaninquantumcomputingfrom2023andoverthenextdecade,morethandoublingcurrentfundingunderthepresentNationalQuantumTechnologiesProgramme.

-TheEuropeanCommissionhasestablishedaseparate$1.1bninitiative,theEUQuantumFlagship,inadditiontonationalclusters.Thereisalsoapan-Europeanorganisation,theEuropeanQuantumIndustryConsortiumtobringtogetherclusters,bothprivateandpublic.

-AnnouncedinOctober2022,Czechia,Germany,Spain,France,ItalyandPolandhostthefirstEuropeanquantumcomputers,intendedtobeintegratedintoanetworkacrossEurope,withplannedinvestmentofEUR100mn.

-UndertheEU’sDigitalDecadeGoals,theEUhopestohaveitsfirstcomputerwithquantumaccelerationby2025.

Numberofquantumtechnologystart-upsintheEU(cumulativeto2023YTD)*

25

20

15

10

5

0

GermanyFranceSpainNetherlandsPolandFinlandSwitzerlandDenmarkItalySweden

Source:DeutscheBank,companywebsites,

FinancialTimes

,EuropeanCommission..*Asdefinedby‘AboutUs’descriptionofrelevantstart-up.Note:Numberofstart-upsmaynotbecomplete.

17

DeutscheBankResearch|QuantumComputing|October2023

INVESTMENTS:Thenumberofquantumcomputingstart-upshas

surgedsince2018,buttherateofannouncementsslowedfrom2022

Cumulativenumberofquantumcomputerstart-upsfoundedbycategory*

600

500

400

300

200

100

0

Software

CommunicationsOther

2022:ChatGPTreleased

tothepublic,triggering

surgeinAIinvestment

Hardware

2021:USimposes

restrictionsonexports

toselectChinese

quantumcompanies

Consulting

2018:USNational

QuantumInitiative

signedintolaw

2016:IBMmakes5qubitquantumcomputeravailableonthecloud

2011201220132014201520162017201820192020202120222023

Source:DeutscheBank,companywebsites.Asdefinedby‘AboutUs’descriptionofrelevantstart-up.

18

DeutscheBankResearch|QuantumComputing|October2023

PERFORMANCEofquantumcomputingcompanieshasbeenmixed

astheindustryremainsinitsearlystages

-Astheindustrycontinuestomature,companieshaveshiftedfromprivatefinancingtoIPOs,withseveralcompaniescompletingIPOsthroughSPACs.

-IonQandRigettiwerethelargesttwoSPACdealsinrecentyears,bothlistingin2021forarespective$636mnand$262mn.Theformerwasthefirstpure-playquantumcomputingcompanytobepubliclytraded.

Totalreturnsofquantumcomputerrelatedpubliccompaniesbysector,2023YTD*

PurePlaySemiconductorsElectronicsDefence

250

194

177

200

150

61

54

52

100

38

38

34

47

8

50

1

0

0

-4

-5

-9

-13

-17

-22

-50

IonQ

RigettiComputingInc

FormFactor

QuantumComputingInc

D-WaveSystems

Nvidia

Intel

IBM

NEC

Amazon

Alphabet

Microsoft

Fujitsu

Toshiba

Baidu

Alibaba

LockheedMartin

NorthropGrumann

Honeywell

Raytheon

-58

-56

-100

Source:DeutscheBank,BloombergFinanceLP.Note:(*)Totalreturnaccountsforbothincome(interestordividends)andcapitalappreciation.Dataisfortheyear2023YTD.Updated30October2023.Inlocalcurrency.

19

DeutscheBankResearch|QuantumComputing|October2023

EMPLOYMENT:TheUSproduces,capturesandretainsthetop

quantumcomputingtalent

-TheUSproducesoneofthelargestcohortsofquantumcomputingtalentattheuniversitylevel-andtheylargelystaywithintheUSfortheiremployment.

-ThisisthensupplementedbytalentinflowsfromIndiaandChina;

-Overall,theUShas33%oftheauthorsofthetop25%ofhighlycitedpapers.

-6ofthe10topinstitutionsinvolvedi