December 25, 2024

A researcher introduces a superconducting quantum computing chip developed by Zhejiang University on Friday, December 17, 2021, in Hangzhou, Zhejiang Province, east China.

Future Publishing | Getty Images

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Alphabet shares soar after Google announces ‘breakthrough’ quantum chip
Shares of Google’s parent company Alphabet shares rose 6% on Tuesday, a day after the company hailed its latest quantum computing chip as a “breakthrough.” On Monday, Alphabet unveiled its “Willow” chip, which completed a calculation in five minutes that would have taken one of today’s fastest supercomputers a billion years — a 1 followed by 25 zeros — Google said.

Former South Korean defense minister attempts suicide; police raid Blue House
The fallout from South Korean President Yoon Seok-yeol’s brief imposition of martial law continues, with reports that his office was raided and the former defense minister attempted suicide. police
A search was reportedly conducted The presidential office launched an investigation on Wednesday as part of an investigation into the six hours of martial law. In addition, former Defense Minister Kim Yong-hyun Reportedly tried About his own life in a detention center in eastern Seoul.

China ramps up Wall Street meetings ahead of Trump inauguration
Chinese Vice Premier He Lifeng met with several U.S. financial executives last month as Beijing seeks to build relations ahead of plans by President-elect Donald Trump to impose tariffs on China. Some of those meetings were with top brass at Blackrock, Goldman Sachs and Citigroup.

Dow Jones drops for fourth straight session
U.S. stocks fell on Tuesday, with the S&P 500 falling 0.3% and the Nasdaq falling 0.25%, with both indexes falling continuously. The Dow Jones Industrial Average fell for a fourth straight day, falling 0.35%. Asian markets were mixed, with most major stock indexes remaining range-bound.

(PRO) Trump’s proposed tariffs could lead to unintended consequences: Bernstein
Bernstein found that Trump’s proposed tariffs could have unintended consequences for some brands, such as negative consumer sentiment in China that could hurt U.S. companies’ sales in that country.

bottom line

What is quantum computing and how does it work?

In classical computing, information is stored in bits. Each bit is either one or zero. Quantum computing uses quantum bits, or qubits, which can be zero, one, or some value in between.

If you’re thinking this sounds like something from the Marvel Multiverse, you’re not alone. Whenever a company proposes a quantum computing breakthrough, such as Alphabet’s Willow chip, the million-dollar question is: “What could it be used for?”

Will we see faster laptops, faster smartphones, or can quantum computing be used for artificial intelligence applications? Can we say “Please open the pod door, HAL?” to a quantum computer?

Proponents of quantum computing claim it will be able to solve problems that current computers cannot. The theory is that quantum computers will be able to process larger amounts of data, leading to potential breakthroughs in fields such as medicine, science and finance.

Alphabet shares soared 6% on Tuesday, but is the enthusiasm unfounded? After all, if quantum computing has no real-world uses today, the solution won’t solve the problem, let alone commercialize it.

Simply put, quantum computing needs to have a purpose. It requires a “ChatGPT moment” like One analyst told CNBC how people can leverage the technology, such as chatbots, to give the world a practical taste of artificial intelligence.

HAL may have to wait a while. Fans of Stanley Kubrick’s epic 2001: A Space Odyssey may know that this isn’t necessarily a bad thing.

—CNBC’s Arjun Kharpal contributed to this report.

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