December 11, 2024

Bringing the heat

Hi there, 

We cover key developments in the AI drug discovery arms race and AI recruiting agents below. 

But first, let’s talk about quantum computing. 

On Monday, Google debuted its latest quantum chip: Willow. 

CEO Sundar Pichai summed up its significance on X as a “breakthrough” in the field. 

Shares in Alphabet (Google’s parent) jumped 6% after the announcement.

Source: X

So what is quantum computing?

Quantum computers process information in a fundamentally different way than today’s conventional computers. 

The industry is built around encoding information in quantum entities called “qubits” — which have a probability of being either 1 or 0, as opposed to traditional bits that can only be one or the other.

This opens up new computational approaches and ways of handling data that are not possible on conventional devices.

Why does it matter?

Quantum computing could allow entirely new algorithms that are much more efficient at some key tasks.

Think complex optimization problems, sorting through large datasets, and running simulations — with commercial applications in:

• Drug discovery
• Finance
• Materials discovery
• Logistics

Google said Willow solved a computation that would take a supercomputer longer than the age of the universe (i.e., 10^25 years). 

Where else is there momentum?

Investors are excited about the quantum landscape — equity funding hit nearly $1.5B across 100+ deals last year. 

Earlier this year, JPMorgan led a $300M round to Quantinuum at a $5.3B valuation.

And a diverse cohort of startups is also racing to commercialize the still-nascent tech, which we mapped here. 

Bottom line

Google’s announcement marks a step forward in overcoming a key challenge in quantum computing — reducing error rates as the number of qubits rises.

Quantum computers are years from large-scale commercialization (Google is only at the second milestone of its 6-milestone quantum computing roadmap). 

But expect commercial interest to rise quickly as quantum computers become more capable. 

Governments and enterprises are already prioritizing post-quantum cryptography to protect sensitive information from future quantum computing threats.

The discovery drive

Investors are pouring billions into AI for drug discovery — to accelerate the process and reduce costs.

This year alone, AI drug discovery startups have secured $3B, up 43% from full-year 2023.

This includes $1.6B to biologics developers using AI, with Xaira Therapeutics raising $1B across two blockbuster rounds this year.

The focus on biologics signals that AI capabilities are broadening from their foundation in small molecules to include larger and more computationally complex therapeutics.

Explore other key developments in the AI drug discovery arms race in this research brief.

AI for talent

Task automation is transforming hiring workflows for HR teams.

The majority of leading HR & payroll incumbents (based on market cap) have introduced recruiting copilot or agent offerings.

Meanwhile, early-stage startups are gaining traction as well.

The private recruiting AI agents & copilots market is crowded — with 30+ competitors — and split between:

• Existing platforms that have built out an AI copilot or conversational interface
• Pure-play copilots and agents

Dive deeper into public and private market activity in this research brief.

Industry Standard

Wall Street Journal. Corrie Driebusch (@cdriebusch) discusses IPOs falling out of fashion and cites CB Insights data.

MediaPost. Laurie Sullivan (@lauriesullivan) covers Sundar Pichai’s and Sam Altman’s takes on AI’s future and mentions CB Insights research.

The Wrap. Sean Burch (@seanb44) reports on growth in AI funding in 2024 using CB Insights research.

I love you.

Anand

@asanwal 

Co-Founder & Exec Chair

P.S. We’re watching 15 key tech trends as we head into 2025. Want to learn more about them? Download this briefing recording.

Get started with CB Insights

CB Insights' emerging technology insights platform provides all the

analysis and data from this newsletter. Our data is the easiest way to discover and respond to emerging tech. 

Was this email forwarded to you? Sign up here