IBM (NYSE:IBM) saw its stock rise 1.5% on Thursday after revealing a new strategic partnership with Cisco (NASDAQ:CSCO) aimed at building a next-generation network linking large-scale, fault-tolerant quantum computers. Cisco shares also advanced, adding 0.75% following the announcement.

Under the agreement, the two companies will combine IBM’s quantum hardware and research leadership with Cisco’s deep expertise in networking to accelerate the development of networked distributed quantum computing—a capability they aim to demonstrate in its early form within five years. Their longer-term target is to establish a fully functioning distributed system by the early 2030s.

The initiative marks a major step toward scaling quantum processing power beyond standalone machines. IBM and Cisco envision a network that allows quantum systems to operate collaboratively, potentially executing tasks across tens—or even hundreds—of thousands of qubits.

“By working with Cisco to explore how to link multiple quantum computers like these together into a distributed network, we will pursue how to further scale quantum’s computational power,” said Jay Gambetta, Director of IBM Research and IBM Fellow.

The companies plan to complete their initial proof-of-concept by the end of 2030. Achieving this milestone will require breakthroughs such as microwave-optical transducers and software capable of managing entanglement across multiple, physically separate quantum systems.

Cisco’s role centers on building the foundation for a quantum-ready data center, including hardware and software designed to maintain quantum states, deliver entanglement, and coordinate operations with sub-nanosecond accuracy.

Looking further ahead, both companies believe their collaboration could help pave the way for a quantum computing internet in the late 2030s—an interconnected web of quantum computers, sensors, and communications equipment spanning long distances. Such infrastructure could support applications ranging from ultra-secure communications to advanced environmental sensing.

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