This Startup's Bold Move: Will You Be Left Behind in the Quantum Race by 2025?

Peter Sarlin, the Finnish entrepreneur known for selling his startup to AMD for a staggering $665 million, has stepped down as CEO of the unit now recognized as AMD Silo AI. After eighteen months in that role, Sarlin is pivoting towards new ventures as chairman of two ambitious projects: NestAI, a physical AI lab, and QuTwo, a startup aimed at revolutionizing how businesses prepare for the forthcoming era of quantum computing.

QuTwo is currently funded entirely by Sarlin's family office, PostScriptum. It positions itself as “an AI lab for the quantum era,” but it does not intend to wait for quantum computing to reach its full potential. Instead, the company is already collaborating with enterprise clients, including the well-known European fashion retailer Zalando. Together, they are developing "lifestyle agents" — innovative AI tools designed to move beyond traditional product searches by proactively suggesting products and experiences tailored to consumer preferences.

The rationale behind QuTwo's inception is centered on the belief that AI is nearing an efficiency wall, which quantum computing may eventually help overcome. However, Sarlin emphasized that QuTwo is not solely waiting for this future breakthrough. The startup is focused on constructing QuTwo OS, an orchestration layer that allows businesses to transition from classical to quantum computing, utilizing a hybrid computing approach in the meantime.

Sarlin has also invested in Finnish quantum companies IQM and QMill through PostScriptum. He joins a growing number of investors who are confident that quantum computing will eventually outstrip classical computers across various industry applications, while also easing the energy demands currently associated with AI. Sarlin believes that initial use cases will necessitate mixed hardware environments, allowing enterprises to concentrate on their core business issues while QuTwo OS manages the complex routing.

One of the exciting features of this initiative is the concept of "quantum-inspired" computing. This approach is already viable today, as it employs classical hardware while simulating quantum behavior — effectively sidestepping some of the obstacles still faced by quantum hardware. QuTwo OS is designed to be adaptable, capable of supporting both quantum and non-quantum algorithms and chips.

The team behind QuTwo brings a wealth of experience from both the quantum and AI sectors. Notable members include Kuan Yen Tan, co-founder of IQM, and Antti Vasara, who serves as a board member and is also the chair at SemiQon, a Finnish startup focused on quantum chips. The enterprise side is represented by Sarlin himself and Kaj-Mikael Björk, one of his former co-founders at Silo AI. Moreover, Pekka Lundmark, the former CEO of Nokia, has joined QuTwo’s board to lend further expertise.

With a team of over 30 quantum and AI scientists, Sarlin is unequivocal about the company’s direction. “We’re building for the quantum world, but QuTwo is an AI company,” he stated, clarifying that QuTwo’s mission is to “push AI workloads from classical to quantum.” This dual focus means that the potential customer base for QuTwo could be extensive. Beyond the partnership with Zalando, QuTwo has also launched a joint quantum AI research initiative with OP Pohjola, a major Finnish financial services provider.

From its inception, QuTwo has adopted a commercially driven approach and already boasts “large design partnerships which are in the tens of millions,” according to Sarlin. These partnerships, which involve co-developing products alongside enterprise customers, provide QuTwo with crucial insights into customer expectations as it builds its offerings. Additionally, they represent a strategic investment for enterprises keen on securing an early foothold in the quantum computing landscape.

As the tech landscape evolves, the intersection of AI and quantum computing presents not only challenges but also tremendous opportunities. Sarlin's journey from the helm of AMD Silo AI to leading QuTwo highlights the potential for innovative solutions that could redefine industries, making this an exciting time for businesses willing to adapt and invest in future technologies.