Rigetti Computing, Inc. (RGTI) has positioned itself as a formidable player in the rapidly evolving quantum computing landscape. Founded in 2013, the company has established a strong foothold in the industry through its innovative approach to superconducting quantum processors and its commitment to driving the technological advancement of this transformative field.

Company Overview

Rigetti's journey began with a clear vision: to build the world's most powerful computers and unlock solutions to some of humanity's most pressing challenges. The company's founders recognized the immense potential of quantum computing and set out to pioneer new frontiers in this transformative technology. Headquartered in Berkeley, California, Rigetti specializes in building quantum computers and the superconducting quantum processors that power them.

One of Rigetti's key differentiators is its vertically integrated business model. In 2017, the company became the first to build a dedicated and integrated fabrication facility, known as Fab-1, for producing quantum processors. This in-house fabrication capability has enabled Rigetti to accumulate significant hands-on experience and intellectual property in producing quantum computer chips, maintaining tight control over the development and manufacturing of its core technology and ensuring a consistent pipeline of innovation.

Technological Advancements

Rigetti's technological prowess is evident in its scalable multi-chip quantum processor architecture, which leverages the company's extensive patent portfolio. This modular approach to quantum computing systems has enabled Rigetti to achieve significant milestones, including the successful demonstration of a 84-qubit quantum computer, the Ankaa-3, in 2024. The Ankaa-3 system features an extensive hardware redesign, with Rigetti achieving a remarkable 99.0% median two-qubit iSWAP gate fidelity and a 99.5% median two-qubit fidelity with fSim gates.

The company's focus on improving fidelity and scaling up its quantum systems has been a consistent theme in its roadmap. In 2025, Rigetti plans to introduce the next generation of its modular system architecture, with a targeted 2x reduction in error rates from 2024 levels. By mid-2025, the company expects to release a 36-qubit system based on four 9-qubit chips, and by the end of the year, a system with over 100 qubits, again with a targeted 2x improvement in error rates. Furthermore, Rigetti has outlined an ambitious roadmap to scale to several hundred thousand qubits within 5 years, leveraging a chiplet-based approach.

Strategic Partnerships

Rigetti's commitment to advancing the field of quantum computing is further evidenced by its strategic partnerships and collaborations. In February 2025, the company announced a collaboration agreement with Quanta Computer, Inc., a global leader in computer server manufacturing. This partnership aims to accelerate the development and commercialization of superconducting quantum computing, with both companies committing to invest over $250 million each in the field over the next five years.

Financials and Liquidity

The company's financial position reflects its ambitious growth plans and the challenges of operating in an emerging industry. For the fiscal year 2024, Rigetti reported total revenue of $10.79 million, a 10% decrease from the previous year's $12.01 million. This decline was primarily attributed to a $2 million reduction in Quantum Computing as a Service (QCaaS) revenue, partially offset by higher revenue from development contracts and Quantum Processing Unit (QPU) sales.

Despite the revenue decrease, Rigetti's cost of revenue increased by $2.29 million, or 82%, during this period, driven by an unfavorable mix of higher-cost development contracts. The company reported a net loss of $201 million in 2024, significantly higher than the $75.1 million net loss in 2023. This increase was largely due to non-cash expenses, including $90.17 million in changes in the fair value of derivative warrant liabilities and $43.74 million in changes to earn-out liabilities.

On a positive note, Rigetti's research and development expenses decreased by $3.02 million, or 6%, in 2024 compared to 2023, primarily due to a decrease in IT costs and salary expenses. Selling, general and administrative expenses also decreased by $3.29 million, or 12%, during this period, mainly due to lower professional service fees and the absence of certain one-time expenses incurred in 2023.

As of December 31, 2024, Rigetti had cash, cash equivalents, and available-for-sale investments totaling $217.2 million. This strong balance sheet, coupled with the $35 million investment from Quanta and the $250 million commitment over the next five years, provides Rigetti with ample resources to continue its research and development efforts, expand its operations, and pursue its long-term strategic objectives. The company believes its existing cash reserves should be sufficient to meet its anticipated operating cash needs for at least the next three years based on its current business plan and expectations.

Rigetti's liquidity position appears robust, with a debt-to-equity ratio of 0.069, a current ratio of 17.42, and a quick ratio of 17.69. Notably, the company has no outstanding debt as of December 31, 2024, after prepaying its loan from Trinity Capital Inc.

Challenges and Competition

However, Rigetti's journey has not been without its challenges. Like many technology companies in the quantum computing space, Rigetti has faced the inherent difficulties of developing and scaling a completely new computing paradigm. The company has encountered setbacks in meeting some of its previously announced milestones, reflecting the technical complexities and the rapidly evolving nature of the industry. In 2023, Rigetti identified and remediated two material weaknesses in its internal control over financial reporting related to complex financial instruments and its overall closing and financial reporting processes. Additionally, the company implemented a workforce reduction in the same year to focus on near-term strategic priorities.

Moreover, the quantum computing market remains highly competitive, with established technology giants and well-funded startups vying for a share of this promising market. Rigetti's success will ultimately depend on its ability to differentiate its offerings, forge strong partnerships, and maintain its technological edge in the face of intensifying competition. The company believes that the superconducting gate-based quantum computing modality is the most likely to succeed, with Rigetti, IBM, and Google leading the industry.

Market Position and Future Outlook

Despite these challenges, Rigetti's commitment to innovation and its focus on driving the advancement of quantum computing have positioned the company as a key player in this rapidly evolving landscape. The company began generating revenue in 2018 through partnerships with government agencies and commercial organizations. In a significant milestone, Rigetti entered into a merger agreement with Supernova Partners Acquisition Company II, Ltd., a special purpose acquisition company, in October 2021. The business combination was completed on March 2, 2022, at which point Rigetti became a publicly traded company listed on the Nasdaq Capital Market under the ticker symbol RGTI.

Rigetti has continued to make strides in commercializing its technology. The company has successfully sold its Novera quantum processing unit to customers, including Montana State University and the UK government, as it works to build out its quantum computing ecosystem. These achievements demonstrate Rigetti's progress in translating its technological advancements into tangible commercial products and relationships.

The company operates in a single business segment and reports its financial results as one reportable segment. Rigetti's key product offerings include Quantum Processing Units (QPUs), Quantum Computing as a Service (QCaaS), and development contracts. The Novera QPU, launched in December 2023, features a 9-qubit chip with tunable couplers for fast 2-qubit operations and a 5-qubit chip for testing single-qubit operations.

Geographically, Rigetti generates the majority of its revenue in the United States. In 2024, 58.6% of revenue was from the United States, 34.5% from Europe, and 6.9% from Asia and other regions. This global presence underscores the company's efforts to expand its reach and capitalize on international opportunities in the quantum computing market.

Looking ahead, Rigetti is focused on developing more advanced QPU generations, improving fidelity, and expanding its QCaaS offerings to drive future growth and achieve its goal of quantum advantage. The company is also awaiting decisions from the U.S. Department of Energy and Department of Defense regarding potential quantum computing funding initiatives, which could provide a significant increase in government investment in the space.

The quantum computing industry is expected to see significant growth in the coming years, with the total addressable market estimated to reach over $100 billion in the next 15 years. As Rigetti continues to navigate this dynamic landscape, its ability to execute on its ambitious roadmap, capitalize on government initiatives, and capture market share will be closely watched by industry observers and investors alike.

In conclusion, Rigetti Computing, Inc. (RGTI) has emerged as a trailblazer in the quantum computing industry, leveraging its vertically integrated business model, scalable multi-chip architecture, and strategic partnerships to push the boundaries of what is possible in this transformative field. While the company faces significant challenges and operates in a highly competitive and rapidly evolving market, its strong liquidity position, ambitious technological roadmap, and focus on commercialization provide a foundation for potential long-term success in the quantum computing revolution.