The venture capital unit of Nvidia (NASDAQ:NVDA) is investing in Honeywell’s (NASDAQ:HON) Quantinuum quantum computing unit for the first time.
The investment is part of a $600M funding round that values the unit at $10B, Honeywell said in a statement. The new funding will help boost Quantinuum’s advancement of quantum computing at scale and go towards the launch of Helios, Quantinuum’s next-gen quantum computing system.
“Quantinuum continues to meet and exceed our stated objectives — strategically, technically and commercially,” Vimal Kapur, Chairman and CEO of Honeywell said. “We have complete confidence in Quantinuum’s ability to continue to lead the quantum revolution and create long-term value for its investors and customers.”
Honeywell shares rose 1% in premarket trading, while Nvidia shares were fractionally higher.
Other quantum computing stocks, such as IonQ (IONQ), Rigetti Computing (RGTI), Arqit Quantum (ARQQ), Quantum Computing (QUBT) and D-Wave Quantum (QBTS) were higher on the back of the news.
Other investors in the funding round include JPMorgan Chase, Mitsui, Amgen, Cambridge Quantum Holdings, Serendipity Capital and Honeywell — all of whom have reinvested. New investors were MESH and Korea Investment Partners.
Nvidia’s investment is notable given the company’s mixed history with quantum computing. Earlier this year, Nvidia CEO Jensen Huang said that “very useful” quantum computers were somewhere between 15 and 30 years away, which resulted in shares of quantum computing companies to slump. Huang issued a mea culpa in March at the company’s GTC event, which included its first ever quantum day. Huang further shifted his view and said in June that the quantum computing industry was now at an “inflection point.”
Separately, in June, Nvidia announced that it had teamed up with IonQ, Amazon Web Services and AstraZeneca to develop and show a quantum-accelerated computational chemistry workflow.