ICM HPQC News Flash - September 2025
- ICM
- 6 hours ago
- 7 min read
ICM HPQC Fund (“ICM HPQC”) continues to see excitement in the next-generation computing space. In this newsflash, we cover:
An overview of the month; GPT-5 & Intel
Updates from the quantum space including a new quantum centre in New Mexico
Updates from portfolio companies Q-CTRL and Diraq
A round-up of what we’ve been reading
August Recap
August started with OpenAI’s much anticipated release of GPT-5. For many regular users, this was a disappointing release but the update was aimed at the 700m+ free users whose queries are now routed to the model best suited for the question. This gives OpenAI the dynamism to serve up different models depending on cost and desired output, while also giving free users a better experience by directing their queries to leading edge models if required (and within the limits of a free account). SemiAnalysis notes this routing mechanism lays the groundwork for OpenAI to monetise its largest customer base and predicts that commercial queries – such as flights, hotels, and ecommerce purchases – will be run like advertisements where the query is free for the user, with the cost borne by the seller. AI companies like OpenAI currently have an economics problem, and lowering the cost of compute and finding more ways to monetise users is critical to these firms’ success. A vision of this monetised AI model and ultimately a consumer Super App is well represented by SemiAnalysis here.
Another piece of major news was the US Government’s $8.9B investment in Intel in a strategic play to keep Intel’s foundry business, and the future of American-made semiconductors, alive. The move breaks conservative orthodoxy and has prompted outrage from the left and the right, with some economists warning that it will distort competition, invite corruption and create market inefficiencies. Ultimately the US needs Intel to avoid being reliant on Samsung (Korea) and TSMC (Taiwan) and the investment has been well received by US semiconductor, data centre and AI firms. Government cash doesn’t guarantee that Intel will be able to compete, and it possibly puts its mostly international customer base at risk, but it is a bold move to reduce US semiconductor reliance on foreign companies. Read More.
Yole released its Data Center Semiconductor Trends report where it forecasts a $500B market for data centres by 2030 fuelled by generative AI, HPC, and hyperscaler demands. Within this, GPUs and AI ASICs lead with a $100B market in 2024 set to double by 2030. Photonics alone is forecasted to achieve multibillion-dollar revenues by 2030. Nvidia remains dominant while AMD, Intel, and startups target its market share. Read More.
News in Quantum
The New Mexico Economic Development Department announced a $25M venture studio to establish New Mexico’s position as a hub for quantum technologies. A number of quantum companies have already set up shop there. It’s a far cry from the >$1B commitments made to the Chicago Quantum Exchange, but it’s already attracting some big names in quantum and will be one to watch. More here.
According to SEC filings, Quantinuum has raised at least $593M (at ~$10B valuation) in a new funding round. This is massively out of proportion to the reality and maturity of this technology, but possibly reflects a need to compete with the new Ion Trap powerhouse of IonQ and Oxford Ionics. In one sense it’s good for the wider sector as it shows an interest from investors and positive market sentiment toward quantum computing, but we are wary of a deal that smells strongly of hype and will reflect badly on the rest of the sector when it inevitably disappoints.
Another deal to note is QuamCore’s (Israel) $26M Series A after emerging from stealth earlier this year. This is the latest company to announce they will build a million-qubit system in a single-cryostat by 2030, citing economic viability as a key reason why they’ve redesigned existing superconducting qubit architecture. We love to hear of teams thinking about the commercial reality of their systems and look forward to learning more about this technology.
MIT launched its Quantum Index Report, a simple but useful overview of trends in quantum technologies. The report will be updated annually.
Portfolio Update
Q-CTRL
Q-CTRL has been awarded not one but two DARPA contracts under the Robust Quantum Sensors (RoQS) program, worth a combined US$24.4M over the next 2.5 years. This is a strong validation of Q-CTRL’s global leadership in quantum sensing.
Why does this matter? Today’s navigation systems are heavily GPS-reliant—but GPS can be jammed or degraded. Quantum sensors offer a potential alternative. The challenge is that quantum sensors are extremely sensitive and prone to interference from electromagnetic fields, gradients, and vibrations. DARPA’s RoQS program is tackling this by building sensors that can function reliably across platforms and environments.
DARPA is one of the US government’s most well funded innovation agencies, and has been behind some of the greatest innovations in the world, including the internet and GPS itself. We can’t think of a better tick of approval for a GPS back-up than the group that invented GPS!
This latest win builds on a standout year for Q-CTRL. Their quantum software has already been validated in maritime trials, and earlier in 2025, they teamed up with Lockheed Martin to secure a U.S. DoD Innovation Unit contract to prototype a quantum-enabled Inertial Navigation System (INS).
Diraq
Meanwhile, Diraq is making steady progress on multiple fronts:
Continuing its collaboration with Fermilab, one of the world’s top physics labs, and sharing its latest thinking on spin qubits. Read the article
CEO & Founder Andrew Dzurak recently appeared on The New Quantum Era podcast to discuss the company’s roadmap. Listen here
Diraq also picked up silverware, winning the Technology Platform category at the New South Wales iAwards, hosted by the Australian Information Industry Association (AIIA). This award is one of the most prestigious recognitions of Australian tech innovation. More here
Flash Snap: Quick Link Roundup of the Latest Plays (In Case You Missed Them)
Over 100 companies are developing AI processors, with expectations of consolidation to around 25 survivors by decade's end. [The Register]
IBM and AMD are partnering to develop a quantum computing architecture that integrates their specialized AI and quantum technologies to advance computing capabilities. [TechCrunch]
Amazon has surpassed US$100B in data centre spending, exceeding the GDP of several small countries and outpacing its tech rivals' investments. [TechRadar]
Oracle has aggressively invested over US$1B annually in AI-focused cloud infrastructure, including a massive Texas data centre powered by gas generators. [Gizmodo]
Nvidia and AMD to pay 15% of China chip sale revenues to US government [Financial Times]
The AI Bandwidth Wall & Co-Packaged Optics Nvidia and AMD to pay 15% of China chip sale revenues to US government [Financial Times]
The Financial Times discusses the Big Tech infrastructure spending boom on artificial intelligence. Interviewee Carlota Perez warns of a potential crash. [Financial Times]
Google has released the first detailed report on Gemini AI's energy and water consumption, revealing lower-than-expected usage per query. [ZDNet]
CoreWeave's stock dropped after reporting a widening quarterly loss and a cautious outlook due to high AI infrastructure development costs. [Bloomberg]
AI companies have been pouring unprecedented amounts of money into infrastructure, potentially propping up the entire US economy and risking a massive bubble comparable to the dot-com crisis. [Futurism]
The US Federal Reserve predicted that generative AI will significantly boost productivity, though its economic impact will be gradual and fraught with adoption challenges. [Gizmodo]
Venture capitalists have poured US$104.3B into AI startups in early 2025, despite growing concerns about low returns and potential market bubble risks. [Futurism]
The US Department of Energy has designated four former nuclear sites for private sector development of AI data centres and power generation facilities, following Trump administration directives. [The Register]
Elon Musk aims to deploy 50 million H100 equivalent AI compute units by 2030, requiring massive energy infrastructure and billions in investment. [TechRadar]
Meta announced plans to more than double its AI infrastructure spending to US$72B by 2025, including massive data centres and talent acquisition. [TechCrunch]
Groq has sharply lowered its 2025 revenue forecast from US$2B to US$500 million amid challenges in the competitive AI chip market. [TrendForce]
Investment Principal Kate Prebble will be at Microelectronics UK 24-25 September in London, and in Munich at Bits & Pretzels 29 September – 01 October.
Important Note:
The information in this article should not be considered an offer or solicitation to deal in ICM HPQC Fund (Registration number T22VC0112B-SF003) (the “Sub-fund”). The information is provided on a general basis for informational purposes only and is not to be relied upon as investment, legal, tax, or other advice. It does not take into account the investment objectives, financial situation, or particular needs of any specific investor. The information presented has been obtained from sources believed to be reliable, but no representation or warranty is given or may be implied that it is accurate or complete. The Investment Manager reserves the right to amend the information contained herein at any time, without notice. Investments in the Sub-fund are subject to investment risks, including the possible loss of the principal amount invested. The value of investments and the income derived therefrom may fall or rise. Past performance is not indicative of future performance. Investors should seek relevant professional advice before making any investment decision. This document is intended solely for institutional investors and accredited investors as defined under the Securities and Futures Act (Cap. 289) of Singapore. This document has not been reviewed by the Monetary Authority of Singapore.
ICM HPQC Fund is a registered Sub-fund of the ICMGF VCC (the VCC), a variable capital company incorporated in the Republic of Singapore. The assets and liabilities of ICM HPQC Fund are segregated from other Sub-funds of the VCC, in accordance with Section 29 of the VCC Act.
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