Speaker Interview: André M. König - CEO - Global Quantum Intelligence, LLC
André M. König is the CEO of Global Quantum Intelligence, a leading provider of data, analytics, intelligence, and insights in the quantum sector. With 25 years of experience in the tech and startup world and a Quantum Tech newsletter with 17k subscribers, this published author, public speaker, and entrepreneur certainly knows his stuff.
Despite being perhaps one of the busiest people in quantum, he kindly gave up his time to answer a broad-ranging set of questions about the industry, including his thoughts on investment in the quantum market, his predictions for 2023, and the quantum security challenge.
An unconventional path
Quantum physics is an unconventional way to understand the world. So perhaps it's fitting that André M. König took such an unconventional path to the world of quantum technologies.
As a trained economist, König started in management consulting at a strategy house, ending up at Andersen Consulting in the late 90s.
He gravitated toward enterprise technologies and, in his own words, later on helped "build a 300-consultant firm in New York City before transitioning into the startup world, specifically into artificial intelligence when IBM brought Watson to market in the early 2010s."
After a small startup exit in 2018, König embarked on a new venture into quantum technologies. "Even though I thought of myself as a strategist and business person, I realised that I had now worked in technology for over 20 years. " he explains.
After conversing with a friend and former client (the CTO of a Wall Street bank) about quantum technologies, König decided to attend classes at MIT for several months. He'd always been passionate about physics and suggested it was "only natural for me to then start a professional services firm in this new exciting space."
Soon after, Interference Advisors was born. König's new venture was a consulting and business intelligence firm focusing on quantum tech. The plan was to “help users, investors, and governments make the best possible decisions in this field."
However, his journey into the quantum space did not stop there. König also formed the community-focused organisation OneQuatum. It started with a chapter focused on startups but soon added a second dedicated to Women in Quantum. Since then, they've added two dozen regional chapters focused on community, mentoring and career support worldwide.
However, König's most exciting venture into quantum technologies was just about to start.
Global Quantum Intelligence
As we mentioned earlier, König is the CEO of Global Quantum Intelligence. GQI was formed at the end of last year to amalgamate three independent professional services firms that worked in the quantum space.
These firms included trailblazer analyst Doug Finke's Quantum Computing Report and David Shaw's Fact Based Insight, based out of London. Both were well-established in the industry before being joined by König’s GQI.
Nominally, the three firms were competitors. However, in what is symbolic of the small and collaborative nature of the quantum community, they had already forged a relationship based on mutual respect and interests.
"As the industry started to grow, we became more excited about the opportunity and felt that we were in a unique position to combine forces and take a leadership position in professional services across quantum technologies." König states.
In the summer of 2022, they merged their three entities and brought on Terrill Frantz as CTO. As befits an experienced business strategist, the thinking behind this merger was sound. Unlike other business sectors, Quantum was a fledgling industry. Deep, comprehensive experience and expertise were impossible, but pulling together this team solved that issue.
"As the only market and business intelligence firm 100% focused on quantum technologies, we are truly blessed to be working with many of the leading users, governments and investors, as well as vendors in the space,” König says.
GQI’s long-term aim is to continue to support the various participants in the quantum industry with strategic thinking, data, analysis and insights, especially as quantum technology matures into a paradigm-shifting enterprise solution.
GQI's unique edge
When asked about what makes GQI unique, König is frank. While he commends the output on quantum by some big-name consulting firms, he conveys some caution. "These articles and overviews tend to be biased, as all of these firms ultimately want and need to sell their consulting services."
Furthermore, he questions the dedication of many BI firms. König's main criticism is that they rely on part-time analysts whose primary areas of expertise are semiconductors or supercomputing, not quantum technologies. Finally, he describes the "ecosystem of freelancers, of which only a handful are to be taken seriously."
For König, what makes GQI stand out is that it "prides itself on being independent and authoritative”. He adds that the firm’s objectives are to be “transparent and professional in our insights and analysis” so they can “serve as trusted partners to decision-makers in quantum tech”. It’s this mission that gives GQI an edge.
Quantum trends for 2023
Like other nascent technologies, a big part of the quantum conversation revolves around the strides the sector makes each year. The quest for fault-tolerant computers that will transform the enterprise sector continues. Additionally, governments and providers have invested in the space, raising expectations. However, these are some of the most complex problems in tech and science, so patience is required.
When asked about the significant trends to expect during 2023, König speaks about a subject he knows well: consolidation. He believes vendors and technologists will unify, and "by the end of this year, the quantum tech ecosystem will be smaller, more focused and more efficient."
König also expects 2023 to be a year for vendors to execute their roadmaps. After a few years of significant investment and speculation, hitting these milestones will be essential.
Additionally, König believes quantum error correction (QEC) will be a big theme throughout the year because without progress, "the industry will not be able to make the next leap forward.”
While König suggests we should watch for some surprise announcements during the year, expect some regrouping in the space. "At large, we see this year being spent working on the technology, the products, internal resources and processes needed to get ready for a 2024 that might be the first step into the real commercialisation of quantum computing."
Finally, König sounds a warning. Having entered the quantum race early, some users are getting frustrated at what they deem to be a lack of progress. However, König believes the pressure to sate these expectations will provide healthy motivation within the sector.
Big breakthroughs in sensing, computing or cryptography?
Quantum technologies are evolving at different rates. Quantum sensing applications are already here and maturing at high speed. At the same time, quantum computing and cryptography are still in development.
We asked König if he felt that quantum sensing, computing or cryptography would have breakout years. However, he suggested, "We do not see any major breakthroughs happening in 2023."
He does indicate progress will happen this year, with roadmaps being executed and qubit scaling achieved. However, with the hardware, use cases, and supporting quantum algorithms some way off, König is sceptical that major breakthroughs will happen before we get to 2024.
On the Agenda at Quantum.Tech Boston 24-26 April.
- “By the end of this year, the quantum tech ecosystem will be smaller, more focused and more efficient.” — Many promising vendors and startups have emerged in the quantum space over the last few years. However, 2023 will see acquisitions and mergers that will benefit the sector.
- “Based on consensus expectations, we have to be prepared for Quantum computing hardware that, by the end of this decade, will be able to pose a serious threat to classical encryption.” — The quantum security challenge is a real and pressing threat that governments and organisations must take more seriously.
- “For the industry to survive, we need to find the killer apps and the quantum algorithms to implement them over the next five years.” — The next half century will be a defining time for quantum technology.
Download the full agenda here.
The quantum security challenge
The quantum security challenge refers to QC's potential to render encryption algorithms obsolete. Unprecedented computation power could pose enormous security risks for a variety of systems. With the sector on the precipice of major progress, businesses and governments must evolve their data security in anticipation.
König believes not enough attention is being paid to this risk. He suggested that we need to be prepared by the end of this decade for machines that could pose huge problems for cybersecurity.
"With the challenges that the seven NISQ finalists have already faced since being published, known strategies such as harvest now/decrypt later, and potential quantum computing surprises to be expected over the next few years, we believe that the need to implement quantum safe protocols is most urgent and should be addressed by federal governments and private enterprises today."
König suggests moving quickly. Current estimates on timelines could shift suddenly, exposing us to state actors ready to take advantage.
Which industries will achieve quantum advantage first?
One of the significant benchmarks for the industry involves finding practical applications for the tech. Companies are racing to achieve quantum advantage first. But how close are we to this landmark moment?
Interestingly, König feels that there is an unnecessary focus on use cases right now. For him, the industry should prioritise other areas. Currently, we are in the noisy intermediate-scale quantum (NISQ) era. It's a time of great excitement and possibility, but we must face some facts.
While IBM's Osprey saw the development of a 433 qubit machine, fault tolerance and quantum supremacy are some way off. König suggests we must not put the cart before the horse. "Quantum computing today needs to focus on addressing scaling challenges on the road towards NISQ era advantage, implementing better error correction protocols and bringing new Quantum computing modalities to commercial maturity."
König believes an excessive focus on use cases and business advantages obscures the reality of where the industry exists. He believes the industry needs to put its collective head down and work on the advances it knows it can achieve. Only then will it be time to speculate about which industries will benefit the most from fault-tolerant machines.
Quantum SPACs: Success or failure?
Last year was challenging for tech companies of every kind in the equities markets. A half dozen of quantum firms went public with Special Purpose Acquisition Companies (SPACs) in 2021 and 2022. However, firms like Rigetti Computing took tumbles of around 90%, prompting some investors to exit.
However, König, who has been around the investment block, is surprisingly unfazed and offers an intriguing counter-argument to the analysis that quantum SPACs were a failure.
"The SPACs were a big success. The purpose of a SPAC is to raise the most amount of money, as fast as possible with the fewest disclosures possible and the least constraints reasonable."
König reasons that:
a) this is what SPACs are designed to do, and
b) they achieved this goal for several quantum vendors. He concedes that "anyone who expected these financial instruments to have any sort of impact on the commercial success of the technology is probably disappointed". Ever the pragmatist, he suggests this is standard Wall Street fare.
König doesn't expect this situation to "have any meaningful impact on the overall ecosystem". Furthermore, he notes the companies most affected by this downturn are taking "drastic and potentially even preemptive measures to avert negative effects".
Quantum technology is, by and large, in the research and development stage. Investment horizons are pretty far off. With inflation-cooling high interest rates eradicating "cheap money" and inflation itself making future returns look less rosy, the drop in the market isn't entirely shocking. Like the rest of the tech industry, the quantum sector must shrug off these downturns and focus on delivering results.
The future of quantum investment
With 2022 over, we asked König for his thoughts on what will happen with quantum investment this year. He councils us to temper expectations, at least in the US market.
"SandboxAQ, with its 500 million USD raise in mid-February this year, was the first North American deal of the year compared to 10 large deals overseas. I wouldn't be surprised if this is a prediction of what we will see throughout 2023." he says.
König states that European rounds are still catching up with the North American rounds and valuations. However, when they do, he believes they could surpass these valuations, and that deals will feature more European capital at the table.
König warns that 2023 won't be a great year for seed or early-stage rounds anywhere. However, he indicates that governments will continue to take the long-term view, and if anything, they'll expand their investments.
To hear the top speakers discuss the future of quantum, register here.
The quantum five-year view
For the last 20 years, the five-year view of quantum has always been one of the most compelling topics of conversation. Like any game-changing new tech, the tendency for excitable predictions is hard to temper. However, there is plenty of reason to believe that we're in a particularly important time.
König offers us some perspective from his first five years in the space. "When I started, the ecosystem was truly tiny and dominated by PHDs in physics and other relevant science," he explains. "Today we have a small but much larger and much more diverse ecosystem that has left the realm of research laboratories and timidly entered the commercial world."
König strongly believes the next five years will be even more transformational for the industry. He outlines three areas where the sector will grow over the next five years.
They are:
- Consolidation of skills, resources, teams, and employees
- Particular quantum approaches and tech will take the lead for specific applications
- Development of both the killer app and the quantum algorithms to implement them
On the consumer side, König suggests that buy-in from providers will be necessary. He recommends that they'll need to get up to speed with the space to see its potential.
Finally, for König, the next five years will be exciting but still require some patience. He predicts conversion with vendors, if not within the product space, looks achievable. Finally, although stopping short of predicting we'll get there, he said he would not be surprised if fault-tolerant quantum computers hit the market before the end of the decade.
With Quantum.Tech Boston just around the corner, we asked König what he was looking forward to most during the event. Understandably, networking is a big part of the process, with König stating the event will be a time to catch up with "familiar and friendly faces" and rediscover the importance of meeting up in person.
More interestingly, König feels this might be a final opportunity. As the quantum space grows and scales, new entrants will fill the space. For König, in the context of Quantum.Tech, that leads to a bittersweet realisation.
"Quantum.Tech still feels like a family, and this might be the last year for this family to enjoy such a gathering before the industry changes beyond recognition," he notes.
The early stages of any movement are a time of pure discovery and potential. With limited numbers of people around, familiarity and kinship can form quickly. As commercial interests enter, some of that early passion is lost.
However, if any industry is to meet its objectives, it must deal with the problems and compromises that come from "growing up".
For König, Quantum.Tech represents a moment for early players to have "interesting and stimulating conversations about what is happening in the industry, the trends that are emerging, the challenges on the horizon and how we can jointly tackle them."
This sentiment underlines the vital role that events play in emerging sectors. While talks and learning are essential for spreading new ideas, the bonds and relationships that get formed are long-lasting and deeply influential. With so many attendees and speakers invested in helping the space realise its potential, this year's event promises to be unmissable.
König highlights another key role of the event. "I expect a large number of new faces", he said, noting that "While I would personally recommend to any newcomer to invest a lot of their own time into understanding Quantum Technologies, it is always great to see the enthusiasm that the wider public is starting to take in quantum technologies."
If quantum technology wants to realise its potential, it must inspire a wider group of investors, vendors, and consumers. These people will form the lifeblood of the industry and, in some cases, make significant contributions as the future starts.
As König suggests, "It is a pleasure and privilege to be able to help guide and kickstart them where and however we can."
In that sense, König speaks for us all in welcoming everyone, both new and old, to the event. Quantum.Tech will take place between April 24-26 in Marriott Copley Place in Boston, MA.
If you want to hear more from Andre, ensure you don't miss him at Quantum.Tech this April and register your place here today.
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