Prediction: By 2030, this Quantum-AI firm is set to transform the landscape of cloud security

Artificial intelligence (AI) has clearly pushed the boundaries of what current computer hardware can achieve. Yet, the most significant advancement in computing is still on the horizon.

This next big leap is quantum computing—a fundamentally different technology from the binary-based processors found in nearly all modern computers. Quantum computers harness the unusual characteristics of subatomic particles, known as qubits, enabling them to process information at astonishing speeds. Tasks that would take traditional AI years, decades, or even centuries to complete could be finished in minutes using quantum computing systems.

Of course, such immense power can be harnessed for both positive and malicious purposes. Experts widely anticipate that quantum computers will be able to break through what are currently considered secure, encrypted internet connections, and easily crack user passwords.

How can we address this looming threat? By developing innovative methods to protect the data, networks, and connections that will soon face unprecedented risks.

One unexpected company is at the forefront of this movement.

An oldie but a goodie

If you thought of Nvidia, Microsoft, or another major AI player, you wouldn’t be wrong. These companies have been instrumental in advancing artificial intelligence and are also exploring quantum computing in various ways.

However, the company leading this charge is actually International Business Machines ( IBM 0.65%)—better known as IBM—which is poised to revolutionize cloud security as quantum-powered cyber threats emerge.

Though it may not be widely publicized, IBM has been proactively tackling digital security challenges that have yet to fully materialize. Its Quantum Safe™ initiative is dedicated to helping organizations prepare for and defend against cyber risks posed by quantum computing.

Currently, this division is primarily focused on encryption, the area where large organizations are most at risk. Notably, IBM’s efforts have also extended into specialized hardware solutions.

For example, IBM’s z16 and z17 mainframes, which are equipped with AI capabilities, are the first—and so far only—servers of their kind to be considered “quantum safe” due to their integrated Crypto Express security modules.

IBM's got the chops

IBM is hardly new to this field. In fact, it was among the pioneers in artificial intelligence, launching the commercial version of its Watson AI platform in 2013. (Watson first gained widespread attention in 2011 by winning on the TV quiz show Jeopardy!.)

Since then, Watson has been outpaced by more advanced solutions—including IBM’s own upgrades—such as OpenAI’s ChatGPT for consumers and Palantir’s enterprise-focused offerings. Watson never quite achieved the commercial impact IBM had hoped for.

Nonetheless, the journey has been valuable, providing IBM with important lessons from both its AI achievements and setbacks.

It’s also worth noting that IBM has been developing its own quantum computing technology for quite some time. In 2019, it introduced the world’s first commercial quantum computer. While the technology was still maturing and the timing wasn’t ideal—especially with the onset of the COVID-19 pandemic—it marked an important milestone. IBM has since unveiled a 1,121-qubit quantum chip, which, as of its 2023 debut, was the most powerful of its kind globally.

Increasing the number of qubits directly translates to greater computational strength.

Setting the standards

All things considered, IBM’s likely dominance in quantum cybersecurity by 2030—when quantum-driven attacks are expected to surge—may be less about technology and more about its influential role in shaping industry standards. IBM is deeply involved in defining both current and future cybersecurity protocols for the quantum age.

Take, for example, the National Institute of Standards and Technology (NIST).

As its name implies, this agency ensures that companies within an industry produce goods that are at least reasonably compatible with components from other manufacturers. This leads to more efficient production and ultimately, better products.

IBM doesn’t just follow NIST’s guidelines—it helps create them. For instance, three of IBM’s post-quantum encryption algorithms were adopted as NIST standards last year, setting the benchmark for others in the sector. Essentially, the industry’s future direction will be shaped by IBM’s innovations.

IBM’s influence extends beyond NIST. The company is also a member of the Organization for the Advancement of Structured Information Standards (OASIS). Earlier this year, IBM collaborated with Microsoft, Cisco, Intel, and several other tech leaders to establish OASIS’s Data Provenance Standards Technical Committee, which aims to standardize digital data management in the AI—and soon, quantum—era.

To be clear, IBM doesn’t set these industry standards alone; other members contribute and approve the final guidelines. However, IBM’s longstanding reputation and expertise give it significant sway in shaping the technological landscape.

Worth adding to your watch list, if not your portfolio

It’s admittedly challenging to predict the future of this field, especially since quantum-powered AI is still in its infancy. Investors are unsure of its trajectory, making it difficult to anticipate the security measures that will be necessary for the cloud-based systems likely to support it.

It’s also true that IBM hasn’t been a leading force in the global AI boom so far, which may make it hard to envision the company as a major player in the near term.

Even so, IBM is quietly making more progress in quantum security than any other company and is well-positioned to remain at the forefront of this sector. Given Dimension Market Research’s projection that the global quantum cybersecurity market will expand at an average annual rate of 32% through 2034, investing in IBM now could be a smart way to gain long-term exposure to this emerging opportunity.