Rigetti Computing, Inc. (NASDAQ:RGTI) Q2 2023 Earnings Call Transcript

Many of them are quite capable of doing service. And in fact, they want poor know-how from us, but they want to do their own optimizations and tuning and stuff like that. So we really are not discussing service to this national life of customers in the short term, but long term, definitely service is a significant portion of the revenue stream. Your second question was about ADIA lab, and the collaboration we announced. Exciting partnership with ADIA. ADIA is obviously a large organization focused on research on many different things, one of them being the financial areas and in specific the time series with the probability distribution functions. These are extremely complex problems, as we mentioned in our press release, to take on the classical computation.

They approached us and they are giving us some money. We haven’t disclosed how much. It’s again small in the big scheme of things. It’s more of a strategic partnership that we are excited about. We want to work with them. We want to show them that quantum computing makes a difference. With quantum computing, you get a distinct advantage over classical computing in solving these complex problems. Our goal was really to demonstrate narrow quantum advantage or as close a proximity to narrow quantum advantage as we can for these complex problems. It wasn’t really done with a service or with a revenue specifically in mind. Long term, certainly ADIA is a fantastic partner to build our partnership with long term. We hope the real opportunity comes from the financial, vertical market, not just organizations like ADIA.

Hopefully that answers your question.

Unidentified Analyst: It does. Thank you so much for that. Just as my follow-up, regarding the announcement of Riverlane, working with your systems for error correction, I guess can you talk about the longer term implications of that? Since I know internally you guys are more focused on to gate fidelity, but is Riverlane’s efforts supplementing any of your own internal error correction development efforts? Are there any expectations that if Riverlane makes big progress on the error correction front, whether or not that leads to opens more doors for additional QPU system sales or additional development contract signings with potential more lab projects? Thanks.

Dr. Subodh Kulkarni: Yes. Certainly error correction is a very important part of any computing system, even including classical. I mean, we routinely use error corrections in any classical system today, so we definitely expect error correction to be key component of quantum computing system long term. Riverlane is an excellent company focused specifically on error correction. We have partnered with them in the past and definitely we are excited to partner with them right now with the Ankaa-1 system. We are working on in general error areas ourselves, but certainly that doesn’t preclude us from looking at partnerships like with Riverlane and with others, and we are talking to others too. Any advancement, whether we do or they do or in this area is generally will be received positively by the whole quantum computing community.

As I mentioned before, when the fidelities are much lower than 99%, frankly error correction doesn’t make that big a difference. It does make some difference, obviously, but the overall errors are dominated by the intrinsic fidelity of your system. As you increase your fidelity to 98% and 99% and certainly 99.x% range, error corrections start becoming a big determining factor in your overall performance of the system, and that’s really why we have started the partnership early. As we improve our fidelity from our side, they will obviously see the benefit in the final results that they get. So hopefully that answers your question.

Unidentified Analyst: Thank you so much for that. [indiscernible] in the quarter. Thank you.

Dr. Subodh Kulkarni: Thank you.

Operator: Thank you. Our next question comes from David Williams with the Benchmark Company. Your line is open.

David Williams: Hey, good afternoon. And Subodh, I just wanted to extend my congratulations on your success. You’ve definitely done, I think, a fantastic job turning things around and putting things back on track. So congratulations on your progress.