Key Takeaways:
AT&T's expanded deal with D-Wave Quantum marks one of the largest real-world deployments of annealing quantum computing in telecom, cutting a network optimization workload from one hour to under 15 seconds.
D-Wave Quantum Inc. (QBTS) said Monday that AT&T (T) will expand its use of the company's annealing quantum computing technology to optimize network operations, sending QBTS shares up 9.1% to $17.68 in premarket trading. The stock had fallen for five consecutive weeks and carried a 38% year-to-date deficit before the announcement.
"D-Wave's annealing quantum computing technology gives us a new way to approach optimization and high-intensity compute challenges across AT&T's network operations," Lucus Haugen, director of data science for AT&T's chief data office, said in a statement.
Early testing reduced processing time for a network optimization workload from roughly one hour to less than 15 seconds, a roughly 240x improvement over classical computing methods. AT&T plans to integrate D-Wave's technology into tools supporting its agentic artificial intelligence initiatives, which the carrier said are improving outage detection and limiting customer downtime. The company will also explore quantum applications for technician routing, network build planning, and traffic management.
The expanded partnership provides D-Wave with its highest-profile telecom customer validation at a time when enterprise quantum computing adoption remains nascent. D-Wave CEO Alan Baratz said the agreement shows how businesses are turning to quantum computing to solve problems that classical systems struggle with. "AT&T has incredibly complex optimization problems across its network operations, understands where classical computing is challenged, and is moving quickly to explore where quantum can make an impact," Baratz said.
Short covering could amplify gains. Short interest represents 17.6% of QBTS's available float, and options traders have shown a strong preference for calls — the stock's 50-day call/put volume ratio of 3.53 at the ISE, CBOE, and PHLX ranks higher than 85% of annual readings. D-Wave's Schaeffer's Volatility Scorecard of 83 out of 100 indicates the stock has consistently exceeded options traders' volatility expectations over the past year.
Terms of the agreement were not disclosed. AT&T shares were mostly flat in premarket trading.
This article is for informational purposes only and does not constitute investment advice.
