US Air Force Awards $54.5M Quantum Contract

The U.S. Air Force Research Lab (AFRL) has awarded quantum computing company IonQ a four-year, $54.5 million contract, the largest U.S. quantum contract award of 2024.

Under the partnership, IonQ and the AFRL aim to make quantum networking more compatible with existing telecommunications infrastructure.

To do this, they plan to design, develop and deliver technology and hardware to enable quantum systems that can scale, network more readily and are more practical to deploy in different environments.

“We are pleased to continue our partnership with IonQ,” said deputy director of the AFRL Information Directorate Michael Hayduk. "

“Working with industry partners, we can significantly advance the Department of Air Force's efforts to integrate quantum networks into future operations, bolstering our national defense.”

Market Boost

This latest contract grew the bookings IonQ has announced in 2024 to $72.8 million, with the company saying it was confident it could meet or exceed its bookings guidance of $75-95 million for the year.

The news sent IonQ’s stock value soaring by 21% overnight, indicating wider market confidence in quantum computing delivering value to business and government organizations.

“We are thrilled to be at a major inflection point for the company and the industry,” said IonQ president and CEO Peter Chapman.

Related:IonQ Hits $100M in Revenue, Targets Quantum Advantage

“No other publicly traded pure-play quantum computing company has nearly doubled revenue each year since going public, nor have they approached the $100 million bookings mark so quickly.”

The contract continues IonQ’s relationship with the AFRL and the Department of Defense. In  2023, the company announced it was deploying two trapped ion quantum computing systems that the AFRL plans to use for quantum networking research and application development.

The Applied Research Laboratory for Intelligence and Security selected IonQ in September 2024 to design a first-of-its-kind, networked system for “blind” quantum computing. This is a protocol where quantum computers remain blind to the information passed through them.

Outside of government deals, IonQ announced a multi-million-dollar extension of its contract with Amazon Web Services (AWS) to offer its quantum computers via AWS’s quantum computing service Amazon Braket in September.

The company also announced a $9 million deal with the University of Maryland to provide quantum computing access.