Amazon is already monetizing its quantum computing capabilities through its fully managed Amazon Braket service. This cloud-based platform gives customers access to multiple quantum processors, simulators, and hybrid workflows within the AWS ecosystem.
Unlike pure-play quantum computing companies like D-Wave Quantum, Amazon’s approach is hardware-agnostic, allowing it to earn revenue regardless of which technology prevails. The company’s financial flexibility enables it to fund its quantum initiatives for the future.
AWS already generates significant revenues, with a $142 billion annualized run-rate business and strong revenue visibility. This core business provides a stable foundation for Amazon’s long-term investments in quantum computing.
While pure-play quantum computing stocks are priced for perfect execution but carry elevated risk, investing in Amazon provides exposure to quantum innovation without excessive risk. The company has already seen success with hybrid workloads, such as the collaboration between IonQ, AstraZeneca, Nvidia, and Amazon on a drug-discovery workflow, which improved time-to-solution by 20 times.
Amazon’s cash-generating businesses, including its cloud infrastructure, advertising, and consulting services, provide a competitive advantage in terms of financial flexibility. The company is also investing $200 billion in capex to expand AWS infrastructure and has a strong track record of profitably monetizing new capacity.
Investors looking for exposure to quantum innovation without taking excessive risks can consider buying a stake in Amazon. While it may not offer explosive upside potential, it carries far less downside risk compared to pure-play quantum computing stocks.
Source: https://www.nasdaq.com/articles/forget-d-wave-quantum-massive-cloud-leader-quietly-monetizing-quantum-while-others-try