Source: Bloomberg (paywall)
The U.S., China, and Europe are deploying state resources to quantum development not for near-term commercial advantage—existing quantum computers remain error-prone and narrow in application—but to control a technology with asymmetric defensive value against current encryption standards. The competition centers on building the first system capable of breaking RSA-2048, which would invalidate decades of stored encrypted communications and financial records, creating both massive espionage opportunities and forcing expensive infrastructure overhauls across banking and defense sectors. This explains why quantum R&D spending resembles nuclear weapons programs more than venture capital competition, with governments setting timelines and allocating budgets independent of profitability.