Under the pact, which also made mention of artificial intelligence and nuclear energy, the governments agreed to work together to “realize true quantum advantage,” or get to the point in which quantum computers broadly outperform classical machines.

Propositions include the creation of a “Quantum Industry Exchange Program,” and a joint benchmarking taskforce to create industry-wide standards for quantum computing.

It’s worth nothing that an MoU is nothing more than a non-binding agreement. However, it builds on both countries’ efforts to legitimize quantum, which is often seen as the next frontier in technology.

Just this past week, IonQ and Rigetti Computing, two of the best-known quantum pure plays in the U.S., announced separate deals with the federal government.

IonQ plans to partner with the Department of Energy to deploy quantum technology in space, while Rigetti was awarded $5.8 million to build quantum networking and sensing technology over the next three years. (Barron’s first reported on this contract at the end of August).

“Every bit of federal involvement in the R&D area helps all of us in the ecosystem,” Rigetti CEO Subodh Kulkarni told Barron’s, referencing the quantum industry at large. “The race is on, and it’s great to see the U.S. government step up with projects like this.”

In July, the European Commission put forward a strategy to position Europe as a global leader in quantum by 2030. The U.S. has its own programs such as the Quantum Benchmarking Initiative under the Department of Defense.

A report published by McKinsey earlier this year showed that Japan was outpacing its allies in terms of quantum investment. At the time, the Japanese government had pledged a total of $7.4 billion to develop the technology. The next largest contributor was the U.K. at just $3.5 billion.

Motivations are the same across the board. The U.S., the U.K., and other countries are fighting to be the first to develop commercially viable quantum and snap up their share of the global market.

That’s not to mention the security issues associated with the advent of such powerful systems. Barron’s previously reported how quantum computing could disrupt the blockchain technology underlying Bitcoin, the world’s biggest cryptocurrency, cracking the encryption that has protected data for decades.

There’s even more at risk. Matt Kinsella, CEO of Infleqtion, asserted that quantum networking could play a vital role in a conflict, saying GPS, or global positioning systems, would be “the first thing that’s going to go” in a hot war.

Quantum’s potential role in national security might explain why the DoD has taken such an interest over the past few years. Rigetti, for one, has active contracts dating back to 2023, which largely center on chip fabrication.

Quantum may be nascent, but the growing federal involvement shows it has caught the eye of more than just speculative investors looking to buy into the next “it” technology.

U.K. Prime Minister Keir Starmer addressed the partnership at a press conference Thursday, going so far as to say quantum could change lives. “It’s our chance to ensure that technologies like AI, quantum and others amplify human potential … solve problems, cure diseases, make us richer and freer,” Starmer continued.

The use cases may sound vague, but scientists have been exploring applications in everything from science to supply chain optimization to banking.

The technology continues to develop. Companies have been looking for ways to build bigger machines while cutting down on errors. Major players, from privately held Quantinuum to industry giant International Business Machines, expect t0 have fault-tolerant machines by the end of the decade.

It will be years before investors know whether quantum is the transformative technology they’ve been promised, though there are signs that indicate it just might be.