Quantum Optimization Technology Trends

Thought you knew which #quantumcomputers were best for #quantum optimization? The latest results from Q-CTRL have reset expectations for what is possible on today's gate-model machines. Q-CTRL today announced newly published results that demonstrate a boost of more than 4X in the size of an optimization problem that can be accurately solved, and show for the first time that a utility-scale IBM quantum computer can outperform competitive annealer and trapped ion technologies. Full, correct solutions at 120+ qubit scale for classically nontrivial optimizations! Quantum optimization is one of the most promising quantum computing applications with the potential to deliver major enhancements to critical problems in transport, logistics, machine learning, and financial fraud detection. McKinsey suggests that quantum applications in logistics alone are worth over $200-500B/y by 2035 – if the quantum sector can successfully solve them. Previous third-party benchmark quantum optimization experiments have indicated that, despite their promise, gate-based quantum computers have struggled to live up to their potential because of hardware errors. In previous tests of optimization algorithms, the outputs of the gate-based quantum computers were little different than random outputs or provided modest benefits under limited circumstances. As a result, an alternative architecture known as a quantum annealer was believed – and shown in experiments – to be the preferred choice for exploring industrially relevant optimization problems. Today’s quantum computers were thought to be far away from being able to solve quantum optimization problems that matter to industry. Q-CTRL’s recent results upend this broadly accepted industry narrative by addressing the error challenge. Our methods combine innovations in the problem’s hardware execution with the company’s performance-management infrastructure software run on IBM’s utility-scale quantum computers. This combination delivered improved performance previously limited by errors with no changes to the hardware. Direct tests showed that using Q-CTRL’s novel technology, a quantum optimization problem run on a 127-qubit IBM quantum computer was up to 1,500 times more likely than an annealer to return the correct result, and over 9 times more likely to achieve the correct result than previously published work using trapped ions These results enable quantum optimization algorithms to more consistently find the correct solution to a range of challenging optimization problems at larger scales than ever before. Check out the technical manuscript! https://lnkd.in/gRYAFsRt

⚛️ Quantum Computing – Strategic Recommendations for the Industry 📜 This whitepaper surveys the current landscape and short- to mid-term prospects for quantum-enabled optimization and machine learning use cases in industrial settings. Grounded in the QCHALLenge program, it synthesizes hardware trajectories from different quantum architectures and providers, and assesses their maturity and potential for real-world use cases under a standardized traffic-light evaluation framework. We provide a concise summary of relevant hardware roadmaps, distinguishing superconducting and ion-trap technologies, their current states, modalities, and projected scaling trajectories. The core of the presented work are the use case evaluations in the domains of optimization problems and machine learning applications. For the conducted experiments, we apply a consistent set of evaluation criteria (model formulation, scalability, solution quality, runtime, and transferability) which are assessed in a shared system of three categories, ranging from optimistic (solutions produced by quantum computers are competitive with classical methods and/or a clear path to a quantum advantage is shown) to pessimistic (significant hurdles prevent practical application of quantum solutions now and potentially in the future). The resulting verdicts illuminate where quantum approaches currently offer promise, where hybrid classical-quantum strategies are most viable, and where classical methods are expected to remain superior. ℹ️ Erdman et al - 2026

Excellent paper this morning: "Quantum optimization using a 127-qubit gate-model IBM quantum computer can outperform quantum annealers for nontrivial binary optimization problems" by Natasha Sachdeva, Gavin S. Hartnett, Smarak Maity, Samuel Marsh, Yulun Wang, Adam Winick, Ryan Dougherty, Daniel Canuto, You Quan Chong, Michael Hush, Pranav S. Mundada, Christopher D. B. Bentley, Michael J. Biercuk, and Yuval Baum the Q-CTRL team Abtrstect: We introduce a comprehensive quantum solver for binary combinatorial optimization problems on gate-model quantum computers that outperforms any published alternative and consistently delivers correct solutions for problems with up to 127 qubits. We provide an overview of the internal workflow, describing the integration of a customized ansatz and variational parameter update strategy, efficient error suppression in hardware execution, and overhead-free post-processing to correct for bit-flip errors. We benchmark this solver on IBM quantum computers for several classically nontrivial unconstrained binary optimization problems -- the entire optimization is conducted on hardware with no use of classical simulation or prior knowledge of the solution. First, we demonstrate the ability to correctly solve Max-Cut instances for random regular graphs with a variety of densities using up to 120 qubits, where the graph topologies are not matched to device connectivity. Next, we apply the solver to higher-order binary optimization and successfully search for the ground state energy of a 127-qubit spin-glass model with linear, quadratic, and cubic interaction terms. Use of this new quantum solver increases the likelihood of finding the minimum energy by up to ∼1,500×  relative to published results using a DWave annealer, and it can find the correct solution when the annealer fails. Furthermore, for both problem types, the Q-CTRL solver outperforms a heuristic local solver used to indicate the relative difficulty of the problems pursued. Overall, these results represent the largest quantum optimizations successfully solved on hardware to date, and demonstrate the first time a gate-model quantum computer has been able to outperform an annealer for a class of binary optimization problems. Link: https://lnkd.in/eHeEK8MT #quantummachinelearning #research #quantumcomputing

A new paper, now published in Nature Computational Science, introduces "Quantum Approximate Multi-Objective Optimization," a breakthrough from researchers at IBM, Los Alamos National Laboratory, and Zuse Institute Berlin. This work represents one of the most promising proposals for near-term demonstrations of quantum advantage in combinatorial optimization, with enormous relevance across industry and science: https://lnkd.in/ew7Pe2K5 Multi-objective optimization is a branch of mathematical optimization that deals with problems involving multiple often conflicting goals—e.g., constructing financial portfolios that minimize risk while maximizing returns. These problems can be extremely challenging for classical methods as the number of objective functions increases, even in cases where the single-objective version of the problem is easily solvable. The study demonstrates how quantum computers can approximate the optimal Pareto front, i.e., the set of all optimal trade-offs between conflicting objectives, showing better scaling than classical algorithms. Sampling good solutions from vast solution spaces is a task at which quantum computers excel, and the researchers take full advantage of that in their work. This marks an important step toward practical quantum advantage in optimization, and shows the value of exploring quantum capabilities beyond conventional problem classes. The paper is the latest outcome from our quantum optimization technical working group, and I encourage you to have a look.

Excited to announce a new #QuantumComputing result from JPMorganChase's Global Technology Applied Research, titled “Fast Convex Optimization with Quantum Gradient Descent,” which has just appeared on arXiv! Convex #optimization is a fundamental subroutine in #MachineLearning, engineering, and #DataScience, with many applications in financial engineering. We develop new #QuantumAlgorithms in the “derivative-free” setting where the algorithm only uses the function value and not its gradient. We show that #quantum algorithms without gradient access can match the convergence of classical gradient-descent methods, which do assume gradient access! In the derivative-free setting, this translates to an exponential speedup in terms of the dimension.   Our results also have applications outside the black-box setting. By leveraging a connection between semi-definite programming and eigenvalue optimization, we develop algorithms that exhibit the best known quantum or classical runtimes for semi-definite programming, linear programming, and zero-sum games, which are the three most well-studied classes of structured convex optimization problems. These classes model many practical problems of interest, including portfolio optimization and least-squares regression problems. Coauthors: Brandon Augustino, Dylan Herman, Enrico Fontana, Junhyung Lyle Kim, Jacob Watkins, Shouvanik Chakrabarti, and Marco Pistoia. Link to the article: https://lnkd.in/eMtqXM-r

D-Wave has once again asserted its position in the quantum computing landscape by demonstrating that its quantum annealers can solve optimization problems significantly faster than classical algorithms. This latest claim of quantum supremacy focuses on tracking the behavior of an Ising model, a fundamental system in physics used to describe magnetism. Unlike previous claims of quantum advantage, which were often countered by improvements in classical algorithms, D-Wave’s result suggests a clear performance lead in a useful, real-world application. Quantum computing remains in its early stages, with current hardware being small and prone to errors. Despite this, claims of quantum superiority over classical computation continue to surface. Historically, many of these claims have been met with rapid counterarguments, as classical computing methods are refined to bridge the performance gap. However, D-Wave’s focus on quantum annealing—a technique particularly suited for optimization problems—provides a specialized advantage that may be harder for classical algorithms to match. The researchers behind this latest breakthrough acknowledge that classical competitors may still find ways to optimize performance. However, the demonstration of quantum annealers outperforming state-of-the-art classical approaches represents an important milestone. While the broader field of quantum computing remains in flux, D-Wave’s progress reinforces the notion that specialized quantum hardware may provide tangible benefits long before general-purpose quantum computers become viable.

Quantum computing for financial mathematics A key paper published in 2023 by Jack Jacquier, Oleksiy Kondratyev, Gordon Lee, and Mugad Oumgari reviews the state of quantum computing in financial mathematics and leaves a clear message: the value is not in waiting for the perfect machine, but in how we manage the transition with what we already have. Three application lines highlighted by the authors - Portfolio optimization with variational algorithms (QAOA, VQE), where hybrid approaches already help explore scenarios that scale poorly in the classical world. - Quantum Machine Learning, with generative and discriminative models (QGANs, QNNs, Quantum Circuit Born Machines) applied to market data generation, credit scoring, and detection of distribution shifts. - Quantum Monte Carlo, with algorithms achieving a quadratic speedup in expectation estimation, useful for high-dimensional derivative pricing. Other areas mentioned The paper also points to the potential of Quantum Semidefinite Programming (QSDP) for robust risk management and portfolio optimization under uncertainty. The key takeaway The authors emphasize: it’s not just about speed, it’s about thinking differently. - Use quantum algorithms to accelerate critical steps of classical pipelines. - Develop hybrid and quantum-inspired schemes. - Prepare data structures and methodologies that can scale once hardware matures. Ultimately: the real race lies in turning current limitations into opportunities for integration and new value models, while technological acceleration follows its own path. Link https://lnkd.in/d-CPDkN9 Imperial College London Abu Dhabi Investment Authority (ADIA) Lloyds Banking Group

We have started to use quantum computing to solve real engineering problems, especially for optimization, if you map the problem into a Quadratic unconstrained binary optimization (QUBO) formula (basically an Ising model). However, QUBO only includes 2nd-order interactions, limiting its ability to express complex optimization landscapes. Collaborating with Sanghyo Hwang, Prof. Eungkyu Lee from Kyung Hee University, and Dr. Seongmin Kim from Oak Ridge National Lab, we developed a 3rd-order model for higher-order binary optimization (HOBO) problems. https://rdcu.be/eKcgB

Our R&D team at Stellium Inc. has recently been diving deep into concepts like quantum machine learning and quantum PCA, with the goal of identifying the best levers out there to address supply chain challenges with emerging tech. After our most recent midmonth Innov8 workshop, I’m no longer surprised by the fact that the market size for quantum computing is projected to grow at a CAGR of 18+% during the forecast period 2025-2032. The modern supply chain, as we all know, forms a sophisticated network of interconnected elements, where decision-making amid complexity often involves significant uncertainty. Effective management hinges on processing vast streams of real-time data to minimize costs and fulfill customer demands. As these global systems expand, classical computing approaches are reaching their limits in processing speed and handling intricate modeling. Enter Quantum Computing: 🎱 Quantum solutions are exceptionally positioned to tackle the most demanding challenges in logistics, including route optimization, operational efficiency, and emissions reduction. This capability stems from foundational quantum mechanics principles such as Superposition, Interference and Entanglement, that are redefining computational processes. For supply chain executives, this really boils down to resolving complex problems more rapidly than classical algorithms, including those on supercomputers. The aim is to develop responsive analytics through dramatically reduced computation times. Large scale supply chain optimization problems are no longer going to need hrs or days but rather seconds. Industry researchers and a few enterprises are already applying techniques such as the Quantum Approximate Optimization Algorithm (QAOA) and Quantum Annealing. These methods reformulate combinatorial challenges, like the traveling salesman problem in transportation logistics into quantum frameworks, identifying optimal solutions by reaching the ‘minimum energy state’. We are now seeing progress beyond conceptual stages to practical Proofs of Concept (PoCs): • BMW Group applied recursive QAOA to address partitioning issues in supply chain resource allocation. • Volkswagen demonstrated real-time optimal routing through urban traffic variations. • Coca-Cola Bottlers Japan Inc. utilized quantum computing to refine their logistics for a network exceeding 700,000 vending machines. Quantum-powered logistics and supply chain innovations are poised for substantial growth in the years ahead. Forward-thinking organizations recognize the impending transformation and are proactively preparing to become quantum-ready. At Stellium Inc., we are in our early R&D stage when it comes to exploring quantum use cases and strategic partnerships. I am bullish about the impact it’s going to have on supply chain and recognize the need to invest in it right now. DM if you’re interested to discuss more over coffee at Dubai this coming week or at SAP Connect early October in Vegas.

10 million containers. Thousands of trucks. Hundreds of cranes. One impossible scheduling problem. Welcome to the Port of Los Angeles—the largest container port in the US and a critical node in global supply chains. The bottleneck: Every day, Pier 300 (one of the port's largest terminals) faces a computational nightmare: - Which truck goes to which crane? - When do arrivals shift due to delays? - How do you balance load across equipment? - What happens when conditions change every few minutes? Classical scheduling systems couldn't keep up: ⏱️ Long truck wait times (sometimes 2+ hours) 🏗️ Inefficient crane utilization 📉 Reduced throughput during peak periods 💰 Millions in lost productivity Then they deployed quantum optimization. Working with quantum computers, Pier 300 built a system that: 🔬 Simulates 100,000+ cargo-handling scenarios 🎯 Optimizes truck-to-crane assignments in real-time 🔄 Updates every few minutes across two daily shifts ⚡ Runs with 99.999% availability The results: ✅ ~40% reduction in crane usage → Lower labor and equipment costs ✅ ~60% increase in container deliveries per crane → Massive productivity gain ✅ 10 minutes reduced per truck visit → Up to 2 hours in some cases ✅ Tens of millions in annual savings → Plus increased terminal asset value Why this matters: This isn't theory. This is a working terminal processing millions of containers with measurable, bottom-line impact. The shift: From "schedule and hope" to "optimize continuously." Classical algorithms could generate a schedule. Quantum systems generate the optimal schedule—and update it dynamically as reality changes. The insight for supply chain leaders: Port operations are some of the most complex scheduling challenges on the planet. If quantum optimization can handle this, what could it do for your: 📦 Warehouse operations? 🚚 Fleet routing? 📊 Inventory allocation? 🏭 Production scheduling? The computational barrier just fell. The logistics advantage is here. Question: What's the biggest bottleneck in your logistics operations that classical optimization can't crack? #QuantumComputing #Truckl #SupplyChain #Transportation #Innovation