Being the biggest bank in the country, JPMorgan Chase appears to be an unexpected trailblazer in the field of quantum computing.
However, it is progressing rapidly in the industry following its announcement that it assisted in reaching a significant milestone by showcasing a practical use case for a quantum computer.
In a peer-reviewed article published in the journal Nature last month, scientists stated they had accomplished certified randomness This followed researchers at JPMorgan Chase developing an algorithm to produce random numbers, which was executed on a Quantinuum machine.
At the forefront for JPMorgan is Marco Pistoia, who leads the bank’s global technology applied research efforts. Since his recruitment in January 2020, he has established the initial applied research division; however, Pistoia remembers that JPMorgan had demonstrated an early fascination with quantum technologies well prior to this point.
In 2018, when Pistoia was employed at IBM Research, he discovered that JPMorgan Chase was recruiting engineers and mathematicians to experiment with IBM’s early-stage quantum computer prototypes.
“I used to think back then, wow, this is incredibly exciting; even a major firm like JPMorgan Chase showed interest in quantum computing,” Pistoia shared with Barron’s. Only a short time afterward, he ended up “being on the opposite end” as someone leading initiatives for research spanning multiple technological domains.
Pistoia acknowledges that quantum computing may appear quite different from what JPMorgan is most renowned for. Nonetheless, numerous financial institutions have ventured into this field, such as Citigroup, HSBC, and Wells Fargo. Specifically, HSBC has shown strong support for so-called disruptive technologies and boldly stated in March 2024 that the "ChatGPT moment" for quantum technology was imminent.
Banks should utilize the resources available to them currently; however, classical computers do not provide an ideal solution. According to Pistoia, quantum computing presents itself as a superior choice for activities like risk modeling and analysis, along with numerous applications within the realm of machine learning.
Actually, the JPMorgan team has already created algorithms that significantly cut down the time required for training a substantial language model. However, there is a caveat.
"Surely, these algorithms can't be used for production purposes as the quantum computers currently lack the necessary power to run them," Pistoia stated.
The bank does not manufacture computers itself but offers financial backing to firms that do so. During their most recent experiment, researchers gained remote access to a Quantinuum System Model H2 and contrasted its performance with supercomputers located at various federally-supported facilities throughout the nation. Through accomplishing a task involving the generation of numbers surpassing the abilities of traditional systems, the team claimed quantum supremacy shortly following D-Wave Quantum’s achievements. similar claims concerning a materials simulation issue
It may appear as just another achievement for JPMorgan, but random numbers play a crucial role in generating cryptographic keys and other security measures needed to protect digital data from unauthorized access.
The group has personal experience with the destructive impact of a data breach. Back in 2014, a large-scale cyberattack exposed the information of 83 million customers following several months during which JPMorgan attempted to control the situation.
The danger posed by cyber threats is anticipated to escalate further with the arrival of quantum technology, since cybersecurity professionals anticipate that these advanced computers will be capable of breaking down encryption algorithms that have safeguarded digital data for many years.
JPMorgan is tackling this issue, however, achieving success will not be immediate. Scott Aaronson, the computer scientist who initially suggested the certified randomness protocol back in 2018, pointed out that although the outcomes are encouraging, they still fall short of being suitable for "cryptographic applications requiring high security."
Developing quantum technology involves constantly advancing the frontiers of science and engineering, which makes it challenging to establish a specific timeframe. However, Pistoia believes that commercially feasible quantum computers might be available by the end of this decade.
We clearly outline both the constraints and positive aspects of what we do," he stated. "We have made progress toward making quantum computing commercially viable, but it isn’t quite ready for market yet. We are moving closer though.
Send your message to Mackenzie Tatananni. mackenzie.tatananni@barrons.com