JP Morgan and Barclays are exploring quantum computing technology with IBM
JP Morgan will begin exploring the potential of quantum computing and how it might be applied to trading strategies, portfolio optimisation, asset pricing, and risk analysis in a new partnership with tech giant IBM.
The investment bank is one of two financial institutions, along with Barclays, taking advantage of the commercialisation of quantum technology, which has more computing power than any other device on earth.
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German carmaker Daimler, electronics giant Samsung and Honda are also among the 12 top businesses and researchers to be the first to work with IBM on exploring the technology.
IBM believes one of the potential applications of quantum technology could be to wrangle the huge amounts of financial data available to better assess risk.
The firms will have access to IBM's 20 qubit Q system and eventually 50 qubit. It first announced a five qubit system for business use earlier this year. Qubit is the unit of measurement in quantum computing in the same way as bits in classical computing.
“Joining the IBM Q Network allows us to bring our technologists alongside IBM’s researchers and leverage cutting-edge quantum systems to learn about how we may be able to apply these technologies in the future," said JPMorgan chief information officer Lori Beer.
IBM is also establishing quantum research hubs around the world, including at Oxford University and IBM's research facility in the UK.
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"Working with one of the world's leading information technology companies to develop new applications for a quantum computer will enhance Oxford’s and the UK’s capability in quantum technology, by providing a unique resource for the Oxford-led Networked Quantum Information Technologies Hub,” said professor Ian Walmsley.
“NQIT’s emulator programme will work with IBM to convene scientists, engineers and industrial researchers and developers across a wider range of fields, from simulating new molecules to enhancing artificial intelligence to show how quantum computers can dramatically transform their ideas and businesses.”