Reflecting on IonQ’s 2023 Annual Report: A Letter to Our Shareholders

Dear Valued Shareholders,

As we reach the conclusion of another remarkable year at IonQ, I would like to take this opportunity to share insights and address common queries that demonstrate our commitment to transparency and innovation in the field of quantum computing.

Significant Milestones Achieved

Over the past year, IonQ has not only surpassed expectations but has also redefined what is possible in quantum computing. We successfully achieved our ambitious performance goal of 35 algorithmic qubits (AQ) for 2024—an achievement realized a full year ahead of schedule. This leap forward has unlocked new dimensions of quantum computing capabilities.

Additionally, we have made significant strides in expanding our business footprint, securing landmark contracts with the United States Air Force Research Lab and Swiss industry group QuantumBasel. These partnerships mark our largest deals to date, broadening our offerings in both computing and networking.

Addressing Key Questions

In the spirit of transparency, I would like to address some recurring questions from our investors and customers:

1. Will IonQ Achieve “Quantum Supremacy”?

“Quantum supremacy” is a term often discussed in academic circles, denoting a quantum computer’s ability to solve problems impossible for classical computers. However, I believe that truly demonstrating this supremacy may be elusive, simply because proving impossibility presents substantial challenges. Historically, humans have continuously surpassed perceived limits, often with innovative solutions. Therefore, I contend that the pursuit of supremacy may not serve as a practical benchmark for success.

Our focus remains on developing quantum solutions that deliver tangible advantages in the real world—whether that be through efficiency, cost, or enhanced accuracy. In essence, we are committed to creating a “better mouse trap” for our customers.

2. When Can We Expect the Quantum Market to Flourish?

The quantum industry is currently divided in its outlook. Some skeptics argue that millions of fault-tolerant qubits are necessary for practical applications—perspectives that may delay progress. In contrast, we are optimistic that useful applications can emerge from the Noisy Intermediate-Scale Quantum (NISQ) era—especially as IonQ’s trapped ion systems promise superior gate fidelities compared to competitors. We believe that our financial stability will further fuel advancements toward fault-tolerant solutions, marking a promising path forward.

3. Why Does IonQ Favor Trapped Ion Qubits?

Trapped ion