‘We’re kind of in the sweet spot’: After setback, New Mexico doubles down on quantum future

When taking ambitious risks in the advanced technology industry, Elevate Quantum CEO Zach Yerushalmi knows not every swing connects to the ball.

The quantum tech hub recently struck out, as its Quantum Moonshot initiative was not named a finalist for the U.S. National Science Foundation Regional Innovation Engines program. If it won, the award could have brought up to $160 million in funding for quantum breakthroughs and technology commercialization over 10 years.

While winning would’ve been ideal, Yerushalmi said the initiative’s outcome is more than what he could’ve hoped for.

“It was really, in some ways, just an excuse to get everybody in the room and say, ‘New Mexico is the place to do quantum,’” Yerushalmi said.

Putting together Moonshot, he said, paved the way for recent developments like Roadrunner Venture Studios being awarded a $25 million quantum innovation and commercialization award from the state in August.

Roadrunner will lead a coalition of quantum researchers, funders and innovators from Elevate Quantum, Sandia National Laboratories, Los Alamos National Laboratory, the University of New Mexico and others, in building a campus Downtown aimed at drawing in quantum-oriented startups from across the state.

Following that, in September, Yerushalmi said New Mexico’s ecosystem was “teed up” to foster a partnership with the Defense Advanced Research Projects Agency to develop the Quantum Frontier Project. The initiative is part of the defense agency’s Quantum Benchmarking Initiative, aiming to accelerate the development, testing and validation of emerging quantum technologies.

So is the quantum momentum dead in New Mexico? Apparently not.

“I would’ve rather have won it, but at the same time, instead of a 10-out-of-10 outcome, it’s a 9.5 outcome for the state,” Yerushalmi said. “We’re pretty overjoyed about that.”

Bob Ledoux, director of Quantum New Mexico Institute, said a supportive community is absolutely crucial in making the state an innovation hub. Assuming his role this August, Ledoux wasn’t involved in putting Moonshot together — though he’s still “happily embedded” in the ecosystem.

“We’re all working together to see what other initiatives we can apply to together,” Ledoux said. “From the (Economic Development Department), to the labs, to the universities — everybody is still intimately connected and working on everything that’s already set in motion.”

Despite Moonshot not advancing, Ledoux said New Mexico’s momentum in quantum “is truly spectacular,” adding that the initiative was only a small piece of the giant puzzle experts are working to put together now.

Alex Greenberg, Elevate Quantum finance chair and economic development policy adviser for the Governor’s Office, said federal support is another piece of that puzzle. Leveraging state funding opportunities and private sector dollars will, in turn, make for huge commercial potential in the industry.

In April, Colorado-based Mesa Quantum was awarded $100,000 from the EDD’s Office of Strategy, Science and Technology. The grant funding requires the startup to remain in New Mexico for at least two years as it develops laser systems needed for quantum sensing applications.

Quantinuum, another Colorado-based startup, detailed plans in January to expand to Albuquerque with a research and development facility. The company works on advancing quantum computing through hardware and technology development, and has offices worldwide.

While the NSF award would have yielded a large amount of money for local efforts in quantum development and been “unequivocally awesome” for the ecosystem, Greenberg believes that figure can be accomplished between state and private support.

“That’s an achievable number and I think, more importantly, it gave us a 10-year road map for what the major milestones that the Mountain West and New Mexico ecosystem are going to need,” Greenberg said.

In a legislative Revenue Stabilization and Tax Policy Committee meeting on Monday, Greenberg told legislators that the quantum industry is projected to be worth $3.5 trillion in the next decade. In order to capitalize on the budding technology, New Mexico needs to continue making moves now.

“We’re kind of in the sweet spot for quantum technology,” Greenberg said at the meeting. “Being that two years ago was too early for states to be betting on quantum technology and, conversely, two years from now will be too late.”

Greenberg asked legislators to consider approving up to $150 million in tax credits for companies developing quantum infrastructure and equipment in New Mexico.

“It’s the opportunity, in terms of our federal partners, state partners and our private sector partners, to make sure that road map is followed and is fully realized — even without the Regional Engine award,” he said.

Going forward, Yerushalmi said Elevate Quantum is focused on helping Roadrunner create the world’s best quantum companies in New Mexico — and he feels “really good” about where the group is now.

“We are not the star of the show; it’s New Mexico that’s the star of the show,” Yerushalmi said. “I just see these as incredible opportunities to showcase the innovation of the people and companies in the state. We’re honored to do what we can to help.”