Microsoft is integrating quantum computing into its long-term cloud strategy. The company announced the world’s first operational deployment of a Level 2 quantum computer, in partnership with Atom Computing. This system includes error correction and supports logical qubits, making it more stable than earlier machines.
The deployment marks Microsoft’s entry into the market with this capability. The company plans to build a new machine called Magne, which will use over 1,200 physical qubits to support 50 logical qubits. Construction is set to begin in fall 2025, with workloads expected in 2027.
Microsoft is focused on neutral atoms instead of superconducting chips, unlike peers such as Alphabet and International Business Machines. The company’s capital spending will reach $30 billion this year, mainly to support AI and quantum workloads. Azure revenue rose 39% year-over-year, while total revenue reached $76.44 billion.
Microsoft is layering its quantum work into Azure AI Foundry and Microsoft Fabric, its cloud-based data platforms. Fabric posted 55% year-over-year growth and now supports over 25,000 customers. OpenAI’s use of Microsoft tools continues to deepen, including Cosmos DB and Azure PostgreSQL for ChatGPT operations.
Analysts predict a Strong Buy consensus rating for MSFT stock, with an average price target of $617.58. This implies a 17.83% upside from the current price.
Source: https://www.tipranks.com/news/microsoft-msft-ceo-labels-quantum-computing-the-next-cloud-driver-amid-platform-expansion