AT&T Expands Use of D-Wave Quantum's Technology in Network Operations
AT&T has announced it is expanding the use of quantum computing technology from D-Wave, a leader in the field. The telecom giant plans to integrate D-Wave’s annealing-based systems into its AI tools for improved network operations and outage detection. This follows initial tests that reduced processing times by over 85%, demonstrating practical value. Despite this positive development, analysts caution against buying D-Wave stock at current levels due to high valuations and ongoing losses. The company reported a $2.9 million revenue in Q1—down sharply from the prior year—and posted an $18.4 million net loss during that period. With a price-to-sales ratio of 445, significantly higher than the tech sector average of around 7, D-Wave faces high expectations for rapid growth to justify its valuation. AT&T also plans to evaluate D-Wave’s upcoming gate-model systems for use in quantum security and communications applications, signaling continued interest. However, investors are advised to wait until Q2 earnings on August 6 before making decisions.
Topics: AI tools D-Wave expansion network optimization quantum computing