As the quantum industry moves from the lab to the fab, five major trends are driving the next wave of technology and business models: Quantum error correction: The industry’s focus has shifted to quantum error correction as the key to building robust and scalable fault-tolerant machines. With this shift, we’re seeing increased interest in companies focused on error correction capabilities, including Riverlane Ltd., Q-CTRL Pty. Ltd. and Qedma Ltd. There is also significant innovation being applied to encoding physical qubits into logical qubits using not just the classic surface code, but also novel alternatives such as quantum low-density parity check codes, which protect quantum information against noise and decoherence. The middle of the stack: This evolution allows companies to focus on what they do best and buy components and capabilities as needed, such as control systems from Quantum Machines (Q.M Technologies Ltd.) and quantum software development from firms such as Classiq Technologies Ltd. and Algorithmiq Oy. Scale-out architectures: This strategy involves linking multiple QPUs to work together as one distributed machine, which could even enable different types of qubits to collaborate on a single problem. Startups such as Alice & Bob SAS and Qolab Inc. are driving advances in qubit and architecture design and fabrication. Input-output and cryogenics: Alternatives that reduce both the number of cables and their thermal load are emerging, such as improved density (Delft Circuits B.V.), cryogenic qubit control capabilities (Diraq Pty Ltd.’s cryo-CMOS) and alternative approaches such as Qphox B.V.’s optical fiber. Mergers and acquisitions: This trend is playing out at a scale that few investors, including us, anticipated. IonQ Inc. has made several bold acquisitions in 2025, including computing technology with Oxford Ionics Ltd., interconnects and memories with Lightsynq Technologies Inc., communications with ID Quantique SA and Qubitekk Inc., and even space with Capella Space Corp.