Today on Quickly Quantum: Congress wants to raise military quantum spending sixty-eight percent, to five hundred sixty-seven million dollars, and I want to know whether that's a real strategic bet or Washington doing what Washington does best. Before that, in the headlines: IonQ posts a record quarter and lands a fresh DARPA contract, D-Wave's bookings explode past a thousand percent growth, a team runs the largest Quantum Fourier Transform ever attempted on IBM hardware, and researchers in Ottawa pull off something that sounds almost too simple — entangled photons, made with nothing but sunlight. Welcome back to Quickly Quantum, your daily brief on the quantum frontier. It's Monday, August 10, 2026. Let's get into it.

Let's start with money, because three of the industry's most-watched public companies all reported earnings within a day of each other last week, and the picture is anything but uniform. IonQ is the standout. Second-quarter revenue hit eighty point one million dollars, up two hundred eighty-seven percent year over year, and the company raised its full-year guidance to a range of two hundred eighty to two hundred ninety million dollars. On top of that, IonQ landed a twenty-eight million dollar DARPA contract extension — as @orbital_station put it on X, the deal covers a hundred twenty-five compact Evergreen-oh-five optical atomic clocks for radar, secure communications, and precision geolocation, shoebox-sized quantum timing moving from the lab into tactical production. That's a real defense customer writing real checks. D-Wave's story is stranger. Bookings — that's contracted future revenue, not cash in hand yet — surged eleven hundred twenty percent year over year in the first half, to thirty-five point five million dollars. But quarterly revenue itself stayed flat, so the demand is there on paper before it shows up on the income statement. Then there's Rigetti, and we flagged its cash position earlier this week: five hundred forty-one million dollars in the bank against just five point one million in quarterly revenue. Revenue actually grew a healthy hundred eighty-three percent year over year, but losses widened to fifty-two point six million dollars, and the stock fell anyway. As @EmmanuelInvest summarized on X, the risk list is long — small revenue, big losses, no demonstrated quantum advantage yet, and potential dilution from government funding deals. Three companies, three very different report cards.

Now, on the hardware side: a team from Q-CTRL just ran the largest Quantum Fourier Transform ever executed on a real quantum computer — up to a hundred qubits, on IBM hardware. The Quantum Fourier Transform, or QFT, is a core building block behind many quantum algorithms, including the ones that threaten today's encryption, so scaling it up matters. The team used a new compilation trick they're calling 'convolutional' to squeeze more out of noisy chips. Here's the catch, and it's a big one: process fidelity — basically, how often the output is actually correct — was just eleven point four percent at fifty qubits, and cratered to one point eight percent at eighty. The correct answer was still statistically detectable at a hundred qubits, but only because they ran enough shots to fish it out of the noise. This follows a string of incremental QFT scaling records — ParityQC hit fifty-two qubits back in April. So call this the largest circuit ever run, not the cleanest.

Sticking with hardware, but a very different kind: a thread from physics commentator @QuantumTumbler on X caught my eye this weekend, about phase-change memory — the stuff some chips use to store data by switching materials between states. Normally, engineers fight a property called conductance drift, where the electrical state slowly changes after you program it. Researchers took the opposite approach: they built a chip that uses that drift as part of the computation itself, running neural-network-style workloads directly in memory. On a task called cortical surface reconstruction, they reported millisecond-scale speed with big power savings. To be clear, this is an analog, neuromorphic result — not a gate-based quantum computer — and other researchers replying to the thread pushed back on how far the 'embrace the noise' logic actually extends to qubit error correction. Still, it's a nice reminder that not every hardware imperfection needs to be engineered away.

Ninety-four percent fidelity is the number to remember out of Ottawa, where researchers generated entangled photon pairs using nothing but sunlight, no laser required. Quantum Zeitgeist reports this, and we haven't independently confirmed it yet, but the numbers in the writeup are striking: that ninety-four percent fidelity, plus a violation of Bell's inequality — the standard test that rules out any classical, non-quantum explanation for what they measured. The trick was a one-point-four-square-meter light collector funneling concentrated sunlight into a fiber the width of a human hair. As @En_formare put it on X, quote, 'the dogma that only a laser's rigid phase-locked coherence can create entangled photon pairs has been demolished,' end quote. That might be a little strong for a single lab result, but if it holds up, it could mean cheaper, simpler entangled-photon sources for satellites and quantum communication links.

North of the border, Canada just made its own quantum-defense move. The University of Calgary will lead a new Quantum Defence Innovation Secure Hub, backed by twenty point three million dollars in federal funding over two years. The consortium includes thirteen organizations — Lockheed Martin Canada and General Dynamics Mission Systems Canada among them — working on quantum sensing, communications, computation, and hardware assurance, with a goal of handing the Canadian Armed Forces working prototypes within two years. As @ForumDailyNews reported on X, it's a straightforward story: new money, new hub, new mandate. But zoom out, and it's part of a pattern — Canada, like the U.S., is treating quantum less like a research bet and more like a national-security line item. Which brings us to today's main story, because Washington is about to make that bet a whole lot bigger.

Our main story today: call it the quantum-defense budget test — is Washington making a strategic bet on quantum technology, or just running its favorite play of turning a rivalry with China into a bigger appropriations number? Here's what's actually moving. The House is expected to debate defense legislation later this year that would raise annual military spending on quantum development by sixty-eight percent, to five hundred sixty-seven million dollars, according to Bloomberg. A parallel push is underway in the Senate. That's layered on top of more than two billion dollars in direct federal investments the Trump administration announced back in May, plus a set of executive orders in June aimed at accelerating quantum research and getting federal systems ready for the cybersecurity threat quantum computers eventually pose. Now, that threat is worth a plain-English pause, because it's the reason any of this counts as national security and not just science funding. A sufficiently powerful quantum computer could, in theory, break the public-key encryption protecting government communications, banking, and plenty of your own data right now — not today's machines, but a future one, which is exactly why governments are racing to roll out post-quantum cryptography, encryption designed to resist both classical and quantum attacks, before that day arrives. And this isn't just about computers, either — the same push covers quantum sensors that could sharpen navigation, timing, and detection, and quantum communication networks designed to be inherently harder to eavesdrop on. Defense planners aren't betting on one technology, they're betting on a whole toolkit. Layer on the China angle, and you can see why the number keeps climbing. China has stood up a ten-billion-dollar National Laboratory for Quantum Information Sciences. Europe and the UK together have committed nearly three times the public funding the U.S. has toward quantum technology. Darío Gil, the Department of Energy's under secretary for science, told Bloomberg that China's scale is now a central concern for U.S. policymakers — and this isn't just about who builds the flashiest lab demo. It's about domestic supply chains, trained workers, manufacturing capacity, and companies that can actually turn a research paper into deployable hardware. Worth noting: this spending surge is happening even though nobody's sure when quantum computing pays off commercially. Philip Singerman, a senior adviser at the Center for Strategic and International Studies, told Bloomberg that investors remain skeptical about the industry's near-term prospects despite the technical progress. The industry has clearly noticed Washington noticing anyway. Infleqtion CEO Matt Kinsella told Bloomberg that getting a meeting with lawmakers used to be a grind. Quote, 'When we first started doing this two years ago, we struggled to get meetings with staffers on the Hill. Now, we're meeting directly with senators and representatives,' end quote. The White House even hosted a quantum technology summit in July focused on supply chains, workforce development, and industry input. Access has changed, fast — and that's exactly the kind of detail that makes this story worth more than a nod-along headline. Because here's the wrinkle in Bloomberg's reporting that I think matters more than the topline number: the same small group of companies positioned to benefit from this money has gotten a lot more active in Washington lately, and some of the biggest awards already on the table run through people with direct ties to the administration that's cutting the checks. Let's get into exactly who, and exactly how much.

So who's actually saying this looks like more than a strategic bet? Tad DeHaven, from the libertarian-leaning Cato Institute, frames the whole dynamic bluntly — not as a considered judgment about which technology deserves federal dollars, but as a defense-lobbying arms race, where every rival's spending number becomes the justification for topping it next year. The on-the-ground numbers back that read up: the four pure-play quantum companies in line for Commerce Department grants have doubled their lobbying spend, to two point two million dollars. Here's where it gets specific. PsiQuantum and D-Wave are each reportedly in line for around a hundred million dollars in awards. PsiQuantum has backing from Donald Trump Jr.'s investment firm, 1789 Capital. D-Wave went public under Emil Michael, who's now a Pentagon official. I want to be careful here — having investors or executives with political connections doesn't automatically mean the money is undeserved, and it doesn't mean the underlying technology isn't real. But when the same handful of companies keep showing up on both the beneficiary list and the political-access list, that's not a coincidence anyone in Washington needs explained to them, and it's a completely fair question for taxpayers to ask. It's also worth remembering where these specific companies stand technically, because the money is arriving well ahead of the proof. We've noted before that PsiQuantum hasn't shipped a working large-scale machine yet, with its own CEO putting a commercial-scale system around twenty thirty — so a hundred million dollars today is, in large part, a bet on a roadmap seven years out. And we just walked through Rigetti's numbers a few minutes ago: over half a billion dollars sitting in the bank against just five million a quarter coming in the door. None of that makes these companies frauds — Quantinuum, IonQ, PsiQuantum, and D-Wave are all named in the same breath as Microsoft and Google as the specialized players government is watching. It just means the gap between 'strategically important' and 'commercially proven' is exactly where this federal money is landing. IonQ, notably, looks different from that pack right now — real revenue growth, raised guidance, and a DARPA contract that's already shipping hardware, which is the profile you'd want the rest of this money chasing. So where do I come down? The strategic case isn't manufactured. China really has put ten billion dollars behind a national quantum lab, and Europe really is outspending the U.S. by close to three-to-one in public quantum investment. That's a real gap, and closing part of it with federal money is a defensible policy choice on its own terms. What I don't buy is that the specific number here — sixty-eight percent, five hundred sixty-seven million dollars — came out of a rigorous assessment of which capabilities the Pentagon actually needs by which date. Numbers like that tend to emerge from exactly the process DeHaven describes: rival spending as justification, doubled lobbying as amplifier, and political proximity as the tiebreaker for who gets the biggest checks. Time for the Hype Check. I'm putting this one at a five. The threat model is real — quantum-breakable encryption is a genuine future risk, and China's scale is genuinely intimidating. But the funding mechanism itself is doing very little to separate proven capability from access and connections, and until the appropriations process shows its work, that half of the story stays firmly in the 'trust us' column. The House is expected to bring that defense bill to the floor later this year, and that vote — not the lobbying totals, not the press releases — will tell us whether Congress actually believes this number reflects military need, or just believes it's the safe, politically popular thing to approve.

If today's episode helped you make sense of where all this quantum-defense money is actually going, follow Quickly Quantum wherever you listen, and if you know someone who still thinks quantum computing is science fiction, send them this one — today's numbers alone should change their mind about the stakes involved. This has been Quickly Quantum, an AI-voiced podcast, created and built by a real human using today's cutting-edge technology. Nothing you heard on this show is financial advice. I'm Brian Lampert, and I'll catch you all tomorrow — take care!