IQM, a developer of superconducting quantum computers, and DATEV, a German software and IT service provider, have completed a project on the potential of quantum computing for portfolio optimization. They used a 20-qubit quantum system to tailor the Quantum Approximate Optimization Algorithm (QAOA) to optimize DATEV’s product portfolio. The project applied the Markowitz model, originally used for selecting investment portfolios with minimized risk, to DATEV’s product offerings, aiming for optimal resource allocation.
The results, detailed in a published whitepaper, highlight how quantum computing can advance practical applications in real-world use cases. By leveraging IQM’s highly connected quantum processor unit (QPU) topology and advanced two-qubit gate fidelities, they achieved high computational accuracy and reliability in their optimization challenge.
This collaboration shows significant progress in the practical application of quantum computing to industries outside traditional financial markets. DATEV expressed enthusiasm about the potential impacts of quantum technology in the coming years, impressed by the performance of IQM’s quantum systems. The project represents a concrete step towards integrating quantum computing solutions into real-world business problems, demonstrating the practical benefits and future potential of quantum technologies.
For more, read a press release summarizing this research posted on the IQM website here and also a white paper titled “The Future of Portfolio Optimization is in Quantum” here.
January 25, 2025
