TQI Exclusive: Technology Pioneer Says Quantum Tech Positioned to Ignite Next Investment Boom

Insider Brief

• Dan Caruso, a technology pioneer and investor, believes the timing and location are right for quantum technologies, driven by growing investor interest and Colorado’s thriving quantum ecosystem.
• Caruso highlights the convergence of quantum computing and artificial intelligence (AI) as a game-changing trend, with quantum already enhancing AI systems and showing potential for breakthroughs in efficiency and computation.
• Drawing parallels to the internet boom, Caruso predicts that quantum will experience a similar trajectory of hype, corrections and long-term innovation, with early adopters gaining significant advantages in fields like material science, drug discovery and financial modeling.

If time and space define quantum science, then timing and place drive the quantum industry. Dan Caruso, Managing Director of Caruso Ventures, technology pioneer, and author of a forthcoming book on the internet revolution, believes the timing is right—and he’s found the perfect place—to build and invest in quantum technologies.

First, the timing seems right for quantum. According to Caruso, quantum technology appears to be catching the attention of investors in ways that not many experts would have predicted just a few years ago, says

Caruso reports his team is seeing a shift in how frontier technologies, such as quantum, are gaining momentum. He added investors are now seeing examples of quantum technologies securing capital at promising valuations — a sign, he believes, that the market is starting to grasp their transformative potential.

“All of our quantum companies are doing really well and, by making significant traction in real world applications, getting positive attention from the investment community,” said Caruso. “This is frontier tech. And it’s hard to raise money in frontier tech in the recent past, but it seems like there’s a transition that is happening with quantum. We can see money at good round valuations. So, we’re pretty excited.”

Another unexpected trend that could influence quantum’s emergence is the growing awareness of and interest in the potentials of quantum to assimilate with the current darling of the technological investment community: artificial intelligence (AI).

In fact, Caruso believes the convergence of quantum and AI may define this deep-tech sector, creating a dynamic new layer of technological innovation. Caruso noted that quantum software is already enhancing AI systems, even before the arrival of large-scale quantum computers.  This synergy could improve the efficiency of AI, particularly in areas like energy consumption and computation, where quantum-inspired algorithms are showing promise.

Scientists are also making advances in using AI to assist quantum computing, for example, with error correction and designing experiments.

“We’re starting to see in quantum examples where AI and quantum are going to intersect sooner than I would have guessed,” said Caruso. “AI has all the attention and all the momentum right now. If we were having this conversation two months ago, I would have said, in about two or three years, quantum is going to add another whole layer to what’s going on with AI, but we are starting to hear examples of that in conversations with quantum companies that are playing out in real time.”

Caruso, who suggests that technology often evolves in similar patterns, said that quantum — and perhaps this quantum-AI hybrid system that is developing — may be poised to mimic AI’s business and investment growth over the past 18 months, which has demonstrated how software and hardware innovations can converge to drive dramatic value creation.

 “For many investors, it’s about getting in early on the next big trend,” Caruso explained. “After missing out on the AI boom, they may be asking: ‘Where can I get ahead of the curve?’ Quantum and space tech are both ripe for that kind of future run-up.”

Colorado is Attracting Quantum Innovation

Besides timing, place also plays a role in Caruso’s optimism, which is grounded in his experience with Colorado’s thriving quantum ecosystem where startups are scaling and delivering tangible results.

With investments in five Colorado-based quantum companies, Caruso sees the region as a model for quantum innovation and collaboration.

Colorado’s rise as a quantum powerhouse shouldn’t be seen as unusual or an anomaly, said Caruso. The development of the region’s quantum innovation can be traced to foundational research at institutions like CU Boulder and NIST, which have produced a significant number of quantum advances. Caruso said that take that foundational research and add the region’s entrepreneurial spirit and you have the fuel for the ecosystem. He adds that the region also benefits from strong community ties for fostering the growth of companies like Quantinuum, Infleqtion, Maybell Quantum Industries, Vescent, Atom Computing and Longpath.

These firms are scaling operations and developing cutting-edge quantum technologies, from sensing methane leaks to quantum refrigeration.

“When you layer on the fact that now you have these quantum companies that have already taken root here, are being scaled here, I would be hard pressed by anywhere in the US or even in the world that has as many kind of quantum companies that are undergoing the scaling process, as you do here in Colorado,” Caruso said.

He also cited Boulder’s mix of research, business, and lifestyle as a major draw. He cited examples of top talent relocating to Colorado for its family-friendly environment and access to world-class tech infrastructure.

According to Caruso, this convergence of lifestyle and innovation is creating a “virtuous cycle” that attracts both investors and talent.

As Colorado continues to solidify its position as a leader in quantum technology, Caruso remains optimistic about the sector’s potential. He sees quantum as a field that will not only unlock new scientific frontiers but also drive economic growth and innovation.

Opportunities and Hurdles on the Quantum Horizon

Despite this optimism, challenges remain and the timeline for achieving practical quantum computing capabilities is still a topic of debate, according to Caruso.

However, he is confident that early adopters of quantum technology will gain significant advantages, much like those who capitalized on the internet’s early commercial applications. At least initially, certain fields stand to benefit from quantum’s ability to solve complex problems that are currently beyond the reach of classical computing.

“The first uses for those who access functional quantum computers could range from — for example, the easy, low hanging fruit – designing very valuable new materials, or very valuable new drugs,” said Caruso, adding financial modeling as another potentially lucrative use case.

Access to quantum computing resources and the specialized expertise required to leverage them remain significant barriers.

Caruso predicted that early quantum users will face a “gold rush” scenario, where access to quantum computers will be limited and highly competitive.

“It won’t be like AI, where everyone has access to AI through ChatGPT — all at roughly the same time,” said Caruso. “With quantum computing, there will be limited capacity on a small number of the most cutting-edge quantum computers. Those who are most prepared to extract value in the form of drug discovery, material science, or the structuring of financial transactions will pay the most to gain access to the scarce quantum computing resources.”

Lessons from the Internet Boom

Caruso has a unique vantage point to peer into the future of the quantum industry. He is a technology pioneer that has ridden the soaring waves – and endured the crashes – that accompany technological transformation.

Caruso draws parallels between the current quantum landscape and the early days of the internet, a topic he explores in his upcoming book, titled Bandwidth. The book tells the story of “Ambition, Deception, and Innovation that Shaped the Internet Age and Dot-Com Boom”. It also traces the internet’s journey from its inception to its boom-and-bust cycle, perhaps offering insights into how similar trends might unfold in quantum technology.

“The internet was transformative, but its hype cycle also led to overinvestment and subsequent crashes,” Caruso said.

He sees AI and quantum technology following a similar path: a boom fueled by genuine breakthroughs, followed by inevitable market corrections, and ultimately, long-term normalization.

Ultimately, Bandwidth offers lessons in what really drives technological change – which is people, not technology.

“The characters really made this happen, and their exploits, some of whom were good, some of whom were not so good, with many of the latter ending up in jail for a good part of the rest of their lives,” said Caruso. “So, the Bandwidth Boom and Bust has everything from the heroics of the early innovators to the chaos where all went crashing down, and then covers how a new generation of entrepreneurs created enormous value by reigniting the industry.”

Caruso suggests that understanding the plot twists of internet boom and the recognition of that era’s heroes and villains could, possibly, help the quantum industry identify the trends — and visionaries and villains — that will invariably be part of quantum’s own now-being-written story.