MicroAlgo Inc. (MLGO) shares jumped almost 700% yesterday after the company announced a partnership with WiMi Hologram Cloud Inc. (WIMI) to co-establish a micro-consciousness quantum research center. Together, these companies will combine quantum theory and AI technology to understand the relationship between consciousness and the quantum world. The ultimate goal of this business partnership is to develop quantum models that are capable of handling highly complex tasks such as emotion recognition, advanced simulations, and other real-world applications of quantum science. In addition, the joint venture plans to study the human brain deeply using advanced quantum science to achieve higher levels of human-machine interaction. As part of this collaboration, MicroAlgo and WiMi plan to team up with top-tier universities and research centers in China to drive R&D efforts related to microconsciousness.

Quantum Computing: A Layman's Guide

MicroAlgo, a subsidiary of WiMi Hologram, develops central processing algorithm solutions for data analysis, advertising distribution, intelligent chip designing, and gaming. WiMi, the parent company, is a developer of augmented reality holographic services primarily targeting the advertising and entertainment industries. Both companies are headquartered in China. The objective of the new deal is to build a research center focused on combining MicroAlgo’s complex calculation capabilities and WiMi’s expertise in developing holograms and 3D imaging to potentially develop a smarter AI technology grounded on quantum physics.

In traditional computing, binary systems are used, which is a numbering system that uses only two digits; 0 and 1. The electrical switches in computers can either be switched on or off. In quantum computing, the most basic computing unit is called a qubit, which offers an option for a switch to be on or off at the same time. Quantum computing, therefore, harnesses substantially more computing power than the binary systems that are in use today. For instance, to solve a maze, a binary system will have to check each path one by one until the correct path is found while a quantum computer can evaluate all paths simultaneously to identify the correct path, leading to a significant reduction in processing times.

Is It Safe To Invest In Unproven Technology?

Quantum computing has been around for years and researchers have made significant strides. However, real-world applications of quantum computing remain at a negligible level given the massive investments needed to develop commercial products that are less prone to errors. McKinsey expects commercially viable quantum systems to be available by 2030. According to McKinsey, quantum technology will contribute a staggering $2 trillion to the global economy by 2035. In 2023, total investments in quantum technology startups amounted to $1.71 billion, following a strong 2022 where investments totaled $2.35 billion. Quantum computing is poised to revolutionize several business sectors, including health care, telecommunication, and energy.

Given the promising long-term outlook, growth investors with an above-average risk appetite may want to consider gaining exposure to the quantum computing sector through investments in small-scale quantum businesses such as MicroAlgo. Investors, however, will have to weather substantial volatility in stock prices.

Neither Dilantha DeSilva nor Stocks.News have positions in the stocks mentioned in this article. Please see our disclosure page for more information.