Nvidia's Quantum Pivot? Jensen Huang-Led Chip Giant Reportedly Mulls Major Stake In PsiQuantum

Nvidia Corporation NVDA is reportedly in advanced talks to invest in a quantum computing startup.

What Happened: Nvidia is considering a major investment in PsiQuantum, reported Reuters (via The Information).

Quantum technology could handle computations far beyond the capabilities of today's most advanced AI systems powered by Nvidia chips. PsiQuantum is working with the U.S. and Australian governments to build quantum computers in Chicago and Brisbane.

Unlike other quantum computing startups that depend on exotic materials, PsiQuantum leverages standard semiconductor manufacturing methods, the report said.

In March, Reuters reported that PsiQuantum is securing a minimum of $750 million in funding from investors such as BlackRock BLK, valuing the company at a $6 billion pre-money valuation.

See Also: Jensen Huang-Led Nvidia Plans New Shanghai Research Hub To Stay Competitive In China As US Export Curbs Threaten AI Chip Sales: Report

Why It’s Important: This would mark a notable change in direction for Nvidia. The chip giant's CEO, Jensen Huang, previously suggested practical quantum computing was decades away.

In March, however, Nvidia announced a quantum research lab in Boston in collaboration with Harvard and MIT.

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Nvidia is scheduled to release its first-quarter earnings on May 28 after the market closes. According to Benzinga Pro, analysts expect the company to post earnings of 89 cents per share on revenue of $43.07 billion.

Price Action: On Friday, Nvidia’s stock ended 0.4% higher at $135.40.

Benzinga Edge Stock Rankings gives Nvidia a growth score of 95.02%. Click here to see how it compares with other leading tech companies.