CORRECTING and REPLACING IonQ and Fidelity Center for Applied Technology Demonstrate Quantum Machine Learning for Finance on IonQ Quantum Computers

• New paper describes how quantum machine learning algorithms have exponential advantage over classical counterparts in financial analysis
• Algorithm leverages copulas–a common data analysis technique–to better describe the complex relationships between several variables, such as stock prices
• Algorithm has been demonstrated on IonQ’s latest quantum computer and outperformed equivalent algorithm based on classical machine learning
• Quantum algorithms can be applied to statistical problems in several industries, expanding the near-term opportunity for quantum computing

COLLEGE PARK, Md.–(BUSINESS WIRE)–Please replace the release with the following corrected version due to multiple revisions.

The updated release reads:

IONQ AND FIDELITY CENTER FOR APPLIED TECHNOLOGY DEMONSTRATE QUANTUM MACHINE LEARNING FOR FINANCE ON IONQ QUANTUM COMPUTERS

• New paper describes how quantum machine learning algorithms have exponential advantage over classical counterparts in financial analysis
• Algorithm leverages copulas–a common data analysis technique–to better describe the complex relationships between several variables, such as stock prices
• Algorithm has been demonstrated on IonQ’s latest quantum computer and outperforms equivalent algorithm based on classical machine learning
• Quantum algorithm can be applied to statistical problems in several industries, expanding the near-term opportunity for quantum computing

IonQ, Inc. (“IonQ”), the leader in quantum computing, today announced the release of a new paper in collaboration with Fidelity Center for Applied Technology (FCAT) that demonstrates how its quantum computers can outperform classical computers to generate high-quality data for use in testing financial models. Financial institutions commonly use models for asset allocation, electronic trading, and pricing, and require testing data to validate the accuracy of these models. The new technique, demonstrated by FCAT on IonQ’s latest quantum computers, has the potential to be the first class of quantum machine learning models to be deployed for broad commercial use.

Today, many financial institutions generate data with classical machine learning to test their financial models. These classical approaches are often limited because real-world dependencies between variables–for example, in a portfolio of stocks–are too complex for them to model. IonQ and FCAT demonstrated that data generated with quantum machine learning algorithms is more representative of these real-world dependencies and is therefore better at accounting for edge cases like black swan events.

The technique invented by IonQ and FCAT leverages copulas, a method often used in statistical models to describe relationships between large numbers of variables. For instance, large financial institutions use copulas to understand relationships between stock prices (if the price of X is within a particular range, then the price of Y tends to go up). By using quantum computers to implement copulas, IonQ and FCAT demonstrated the ability to construct complex models beyond the capability of classical computers.

“This research, performed on IonQ hardware, shows quite clearly that leveraging quantum computing can lead to superior financial modeling results. The application of quantum machine learning to other industries, ranging from climate science to geopolitics, means that a quantum-shaped future is just around the corner,” said Peter Chapman, CEO and President of IonQ. “Fidelity has long been a leader in understanding how new technologies will shape markets and industries, and we’re excited to work with them in this space.”

The copula method underlying FCAT and IonQ’s work can be applied to any industry dealing with complex systems that involve several correlated variables. In the near future, quantum machine learning may be applied to climate research, medical imaging, or recommendation systems. In finance, the first quantum machine learning methods using copulas are likely to be applied to risk management and portfolio optimization.

“At FCAT, we track new and emerging technologies and trends to help Fidelity meet the changing needs of our customers and associates,” said Adam Schouela, Head of Emerging Technology, Fidelity Center for Applied Technology. “Classical computing enabled breakthroughs in the financial services space, and we expect quantum computing’s impact to be no less significant. We’re thrilled that our latest research with IonQ can help demonstrate quantum’s potential in this space.”

The news continues a year of considerable momentum for IonQ. Its trapped-ion quantum computers were recently added to Google Cloud Marketplace, making IonQ the only supplier whose quantum computers are available via all of the major cloud providers. In addition, IonQ’s co-founders joined the White House’s National Quantum Initiative Advisory Committee to accelerate the development of the national strategic technological imperative.

About IonQ, Inc.

IonQ, Inc. is the leader in quantum computing, with a proven track record of innovation and deployment. IonQ’s 32-qubit quantum computer is the world’s most powerful quantum computer, and IonQ has defined what it believes is the best path forward to scale. IonQ is the only company with its quantum systems available through Amazon Braket, Microsoft Azure, and Google Cloud, as well as through direct API access. IonQ was founded in 2015 by Chris Monroe and Jungsang Kim based on 25 years of pioneering research at the University of Maryland and Duke University. To learn more, visit www.IonQ.com.

About Fidelity Investments

Fidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $11.2 trillion, including discretionary assets of $4.2 trillion as of July 31, 2021, we focus on meeting the unique needs of a diverse set of customers: helping more than 38 million people invest their own life savings, 22,000 businesses manage employee benefit programs, as well as providing more than 13,500 wealth management firms and institutions with investment and technology solutions to drive growth. Privately held for 75 years, Fidelity employs more than 52,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

About Fidelity Center for Applied Technology

The Fidelity Center for Applied Technology (FCAT) is a catalyst for breakthrough ideas that advance Fidelity’s market leadership and enhance every customer’s experience. FCAT teams track emerging social and tech trends, test product concepts and ideas, and build scalable solutions that propel Fidelity forward. For more information about FCAT, visit www.fcatalyst.com.

“Fidelity Investments,” “Fidelity,” and/or “Fidelity Center for Applied Technology” refer collectively to FMR LLC, a U.S. company, and its subsidiaries.

Fidelity Investments® is an independent company, unaffiliated with IonQ. Fidelity Investments is a registered service mark of FMR LLC. 995606.1.0

Contacts

For IonQ:
ionq@missionnorth.com

Katie Pesek

703-795-1928

kpesek@missionnorth.com