AT&T Deal Signals Commercial Progress for Quantum Computing

D-Wave's AT&T Expansion Lifts the Quantum Computing Sector

D-Wave Quantum (QBTS) moved sharply higher Monday after AT&T (T) expanded its use of the company's quantum computing technology across network operations. The agreement builds on earlier work and targets optimization problems including outage detection, technician routing, network planning and traffic management.

The catalyst extended beyond D-Wave. Rigetti Computing (RGTI), IonQ (IONQ), Quantum Computing (QUBT) and Infleqtion (INFQ) also advanced as investors responded to evidence that quantum systems are moving into practical enterprise workloads. IBM (IBM) gained as well, while separately participating in a government-backed quantum initiative.

Key Points

• D-Wave expanded its AT&T partnership after an early application reduced processing time for a network optimization workload from approximately one hour to less than 15 seconds.
• AT&T plans to explore D-Wave's annealing technology across outage detection, technician routing, network build planning and traffic management while evaluating future gate-model systems for security and communications.
• The announcement lifted the broader quantum sector, including IonQ, Rigetti, Quantum Computing and Infleqtion, as investors reacted to a concrete example of enterprise adoption.

AT&T Expands Quantum Computing Into Network Operations

The most important element of D-Wave's announcement was not simply the expansion of an existing customer relationship, but the operational result behind it.

In an early application, AT&T used D-Wave's technology to reduce processing time for a network optimization workload from approximately one hour to less than 15 seconds. AT&T now plans to explore the technology across a broader range of network functions.

The initial focus is on integrating D-Wave's annealing quantum computing technology with tools already supporting AT&T's agentic AI solutions. AT&T said its agentic tools improved network operations including outage detection and management, reducing customer downtime by 12 million hours in 2025.

D-Wave's technology is now being considered for outage detection and response, technician routing, network build planning and traffic management. These are optimization problems involving large numbers of possible variables and outcomes, which is the type of workload D-Wave's annealing architecture is designed to address.

For D-Wave, the expanded agreement provides a commercial use case with a large telecommunications company. More than 100 organizations across commercial, government and research markets already use D-Wave technology, but the AT&T relationship adds a measurable operational result to the company's enterprise adoption story.

AT&T is also evaluating D-Wave's forthcoming gate-model systems for possible applications in quantum security and communications.

That matters to D-Wave's broader technology roadmap because the company is expanding beyond its core annealing architecture. Its acquisition of Quantum Circuits earlier this year marked a return to gate-model quantum computing, and D-Wave released a technical roadmap in June targeting a gate-model system capable of more than one million operations by 2032.

The AT&T agreement therefore touches both sides of D-Wave's strategy: using annealing technology for practical optimization workloads today while exploring future applications for its developing gate-model platform.

Why Did Quantum Computing Stocks Rally?

D-Wave's announcement produced a sector-wide reaction because it provided evidence of commercial adoption rather than another purely technical quantum computing milestone.

D-Wave shares rose sharply following the announcement, with reports showing gains ranging from roughly 5% earlier in the session to 15% later Monday. Other quantum computing stocks moved higher alongside it.

IonQ rose as much as 12%, Rigetti gained as much as 12%, Quantum Computing advanced about 8%, and Infleqtion climbed more than 4%. IBM also gained more than 1%.

The broader Defiance Quantum ETF (QTUM) rose about 1%, a smaller move reflecting its wider exposure beyond pure-play quantum companies.

The response came after a difficult period for several quantum stocks. D-Wave, IonQ, Rigetti and Quantum Computing remained below their levels at the beginning of the year despite Monday's gains, while D-Wave, Rigetti and Infleqtion had each fallen more than 35% year to date at an earlier point cited in the input.

That backdrop helps put Monday's price action in context. Investors were responding to a specific enterprise deployment with a measurable improvement in processing speed, while the broader sector remains volatile.

The AT&T catalyst also coincided with a separate development at Rigetti. The company is expanding its collaboration with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center to build TangleLab, a hybrid quantum-classical supercomputing testbed funded through a $5 million National Science Foundation grant.

Rigetti will provide a 9-qubit Novera quantum system integrated with classical high-performance computing. Construction is expected to begin September 1, with full operations expected in 2027.

The combination of D-Wave's commercial deployment and Rigetti's research collaboration gave investors two different examples of quantum technology moving beyond isolated development: one through telecommunications operations and another through hybrid quantum-classical computing infrastructure.

Commercial Adoption Becomes the Key Test for Quantum Computing

The latest developments reinforce a central question surrounding the quantum computing sector: whether technological progress can increasingly translate into practical applications and commercial revenue.

D-Wave's AT&T relationship provides one such example. The initial network optimization result establishes a measurable performance improvement, while the expanded agreement broadens the potential applications across AT&T's network.

The agreement does not represent a disclosed multimillion-dollar system sale. D-Wave's next financial results, scheduled for August 6, will provide another view of how commercial activity is translating into revenue.

The company had $12.44 million in trailing revenue in figures provided in the input, while its first-quarter fiscal 2026 bookings totaled $33.4 million and its cash position stood at $588.4 million. One analyst cited in the input expected D-Wave to reach the high end of Wall Street's $3 million to $6.6 million second-quarter revenue range as the company begins recognizing a $10 million contract from the previous quarter.

The gap between market expectations and current revenue remains substantial. D-Wave was cited at a price-to-sales ratio above 480, highlighting how much of its valuation depends on expectations for future commercialization rather than its present revenue base.

That makes enterprise adoption especially important. Expanding deployments with AT&T can demonstrate how D-Wave's systems perform in operating environments, but the longer-term commercial question is whether those deployments broaden into larger and recurring contracts across multiple customers.

Government support represents another source of activity across the industry.

In May, quantum stocks rallied after the U.S. Department of Commerce signed letters of intent related to research and development funding. The initiative involves more than $2 billion in federal incentives for nine quantum-related companies in exchange for minority equity stakes.

IBM was also included in the initiative as it announced Anderon, a new standalone company intended to create a quantum chip foundry in Albany, New York.

Taken together, the developments show commercial customers, research institutions and the federal government pursuing different paths toward quantum computing deployment.

What It Means for Investors

The AT&T agreement gives the quantum computing sector a concrete enterprise example at a time when commercialization remains one of its central challenges.

For D-Wave, the significance lies in expanding an existing relationship from limited work toward additional network operations. The reduction of one optimization workload from roughly an hour to under 15 seconds provides a measurable result, while the planned applications in outage response, technician routing, network planning and traffic management broaden the scope of the relationship.

AT&T's evaluation of D-Wave's gate-model technology also connects a current customer to the company's longer-term dual-platform strategy.

For the wider quantum sector, Monday's reaction illustrates how company-specific evidence of adoption can influence sentiment across multiple names. IonQ, Rigetti, Quantum Computing and Infleqtion all advanced even though AT&T's expanded agreement was specifically with D-Wave.

Rigetti's TangleLab collaboration provides a separate example of development through hybrid quantum-classical infrastructure, while IBM's involvement in the federal initiative extends the industry's progress into semiconductor manufacturing.

At the same time, the price action sits against substantial volatility and steep declines among several pure-play quantum companies this year. D-Wave's current revenue base also remains small relative to the valuation cited in the input.

The commercial question therefore extends beyond whether quantum technology can demonstrate performance improvements. The next stage is whether those improvements lead to broader deployments, recurring usage and a larger base of enterprise customers.

Conclusion

D-Wave's expanded AT&T agreement provided the quantum computing sector with a practical demonstration of enterprise adoption.

An early application reduced processing time for a network optimization workload from approximately one hour to less than 15 seconds. AT&T now plans to explore the technology across outage detection, technician routing, network build planning and traffic management, while also evaluating D-Wave's future gate-model systems for security and communications.

The announcement sent D-Wave higher and lifted IonQ, Rigetti, Quantum Computing and Infleqtion, showing how evidence of commercial adoption can influence sentiment across the emerging sector.

Rigetti's separate collaboration on the TangleLab hybrid computing project and federal funding initiatives involving quantum companies add to the broader commercialization and development picture.

For D-Wave and its peers, Monday's market reaction centered on a simple signal: practical applications are becoming increasingly important as investors evaluate whether advances in quantum computing can translate into broader enterprise deployment.

FAQs

Why did D-Wave Quantum stock rise?

D-Wave Quantum stock rose after AT&T expanded its agreement to use D-Wave's quantum computing technology across network operations. An early application reduced processing time for a network optimization workload from approximately one hour to less than 15 seconds.

How is AT&T using D-Wave's quantum computing technology?

AT&T plans to explore D-Wave's annealing technology for outage detection and response, technician routing, network build planning and traffic management. The technology is being integrated with tools supporting AT&T's agentic AI network operations.

Why did other quantum computing stocks rise with D-Wave?

Other quantum stocks rose as investors responded to evidence of practical enterprise adoption in the sector. IonQ, Rigetti, Quantum Computing and Infleqtion advanced alongside D-Wave even though the expanded AT&T agreement specifically involves D-Wave.

What is the difference between D-Wave's annealing and gate-model strategy?

D-Wave currently uses quantum annealing for optimization problems while also developing gate-model quantum systems for a broader range of applications. AT&T is using the annealing technology and evaluating future gate-model systems for quantum security and communications.

What matters next for D-Wave's commercial adoption?

The next question is how broadly enterprise deployments expand beyond initial applications. AT&T plans to explore additional network workloads, while D-Wave's second-quarter results are scheduled for August 6 and will provide another view of its commercial activity.

This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.

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