The UK could be home to a ‘quantum Nvidia’, says algorithm startup

The governmental deep tech funding landscape in the UK has been in a bit of a turmoil over the past few months. Funds have been promised by one government and then whisked away by another in the space of less than a year.

While the UK government recently announced £100mn in support for five “quantum hubs,” the country’s quantum sector is concerned over the level of funding security — and how increasingly risk-averse regulation could stifle international cooperation.

Phasecraft is a leader in quantum algorithms — computational methods designed specifically for quantum computers and their qubits. Its mission is to move quantum computing into an era of practical application, despite the challenges still faced by today’s error-prone NISQ-era quantum hardware.

Today, the company has released a white paper asking the government not to squander the opportunity for the UK to become a global leader in quantum computing.

“Historically, government support and encouragement has been absolutely crucial for quantum technologies, and quantum computing in particular,” Ashley Montanaro, co-founder and CEO of Phasecraft, told TNW.

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He added that even though the National Quantum Strategy has a commitment of £2.5bn, it’s clear that there are “a lot of demands on government funding,” and there have been cases, for example, in AI, where government funding has recently been cut.

However, continued and predictable public funding is essential to maintain momentum and support the “high-risk, high-reward” nature of quantum technology R&D. (By 2035, quantum computing alone could account for $1.3 trillion in value.)

“We think it’s important to make the case that in quantum technologies, the UK in particular, really has an opportunity to be a world leader and be the home of the next ‘quantum Microsoft’ or ‘quantum Nvidia’,” said Montanaro.

Geopolitical risk leads to heavy quantum tech regulation

Adding to the uncertainty niggling the quantum community is the increasing trend of export controls on sensitive technologies. This has the potential to stifle the cooperation and collaboration which have allowed the sector to make crucial breakthroughs in recent years.

“[Governments] are starting to become more nervous about the security implications of quantum,” Montanaro said. “And while we think it’s important to be alert to this, we think it’s also critical not to stifle the technology by over-regulating and over-controlling it.”

The UK along with France, Spain, and the Netherlands have introduced export controls on quantum computer systems over 34 qubits. This sentiment is echoed in other regulatory wording across the globe, stemming from a desire to contain tech that could be applicable in military use.

However, regulation, Phasecraft argues, should be focused on the use of quantum technologies, rather than the technology itself, so as not to risk stifling innovation.

Looking for quantum tech talent across the Atlantic

Other necessary support identified by the company includes finding ways of bridging the talent gap. In August 2024, there were over 37,000 vacancies in the UK quantum sector. Promoting cross-border and interdisciplinary collaboration would maximise the limited talent pool and accelerate innovation, Phasecraft argues.

Founded in 2019 by Montanaro, Toby Cubitt (the aptitude of the name never ceases to amaze me), and John Morton, Phasecraft is a spinout from University College London and the University of Bristol. It recently won a government grant of £1.2mn to develop quantum algorithms for optimisation problems in energy grids. The company also recently opened offices in Washington, D.C., where it will hire eight researchers within the year.