Forward-looking: Software companies are gaining momentum in quantum computing as venture capital increasingly backs advances in algorithms, signaling a shift in an industry once dominated by hardware innovation. While this influx of investment is reshaping the sector, breakthroughs in hardware remain essential to achieving true quantum advantage.
One notable example is the $34 million secured by British quantum algorithms specialist Phasecraft from a group of investors, including an entity linked to Danish pharmaceutical leader Novo Nordisk.
For years, the race to build quantum computers capable of practical problem-solving has focused on engineering systems that harness quantum mechanical phenomena. Now that these hardware systems are edging closer to practicality, attention is shifting rapidly toward the software needed to unlock quantum computing's full potential.
"At some point, people just care about the apps," Bob Sutor, a former IBM quantum expert, told The Financial Times, noting that the history of classical computing has consistently placed software at the center of value creation.
Recent research emphasizes algorithms that broaden the technology's reach across a wider set of applications. For example, one Google researcher claimed a 20-fold reduction in the hardware required to run Shor's algorithm, which is renowned for its theoretical ability to break widely used encryption protocols.
These software breakthroughs are fueling optimism that quantum advantage – the point at which quantum machines outperform classical computers for specific calculations – may be close. Phasecraft CEO Ashley Montanaro projects that the company's algorithms could handle "scientifically important" calculations as early as next spring and suggests that some commercial applications may be ready within a few years.
For now, the consensus is that quantum computing will first make a meaningful impact in chemistry and materials science, where it can model atoms and molecules far more effectively.
Phasecraft reports progress in enhancing density functional theory, a widely used method for simulating atomic-level behavior by combining quantum algorithms with classical computing. Even small improvements, explained researcher Barrett, "translate to enormous value in our understanding of chemistry and our agency over chemical systems."
The implications for climate science and drug discovery are significant. Because lithium atoms are relatively simple to model, quantum-enabled simulations could accelerate the search for better battery materials and advances in energy storage. Sutor noted that battery chemistry could be one of the first fields to benefit from quantum computing, while similar methods promise breakthroughs for pharmaceutical companies such as Novo Nordisk as they pursue novel drug candidates.
Still, Montanaro cautioned that progress will likely remain limited in scope in the near term. "We went through a kind of a peak of quantum hype," he said. "There was a lot of excitement, which I think in some cases was not tempered by enough reality."