On Thursday, Amazon.Com Inc (NASDAQ:AMZN) Amazon Web Services (AWS) announced Ocelot, its new quantum computing chip that can reduce the costs of implementing quantum error correction by up to 90%. The AWS Center for Quantum Computing team developed the chip at the California Institute of Technology.

AWS researchers have combined cat qubit technology and additional quantum error correction components onto a microchip that can be manufactured scalable using processes borrowed from the microelectronics industry through this new approach with Ocelot.

Also Read: Payoneer Q4: 17% Revenue Growth, $22.5 Billion In Transactions, B2B Payments Up 37%, Revenue Target Surges

Ocelot is still a prototype. AWS remains committed to continuing to invest in quantum research in the same way it developed x86 systems reliably and securely at scale to build Graviton into one of the leading chips in the cloud.

Last week, Microsoft Corp (NASDAQ:MSFT) debuted the Majorana 1 quantum chip to scale to 1 million qubits for industrial-scale problem-solving. The quantum breakthrough with topoconductors earned Defense Advanced Research Projects Agency (DARPA) backing, advancing AI and high-performance computing.

Last December, Alphabet Inc's (NASDAQ:GOOG) (NASDAQ:GOOGL) Google announced its quantum chip Willow that could reduce errors exponentially as it scaled up using more qubits.

In November, Nvidia Corp (NASDAQ:NVDA) collaborated with Quantum AI to drive the development of quantum computing devices.

Google looks to introduce commercial quantum computing applications within the next five years.

In July 2024, BCG reaffirmed that quantum computing will create $450 billion-$850 billion of economic value globally, sustaining a $90 billion-$170 billion market for hardware and software providers by 2040.

Price Action: AMZN stock is down 0.42% at $213.43 at last check Thursday.

Also Read:

• EchoStar Q4: $3.97 Billion Revenue, Narrows Pay-TV Subscriber Losses, Focuses On High-Quality Users, Wireless Growth

Photo via Amazon

Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.

Get the latest stock analysis from Benzinga?

• AMAZON.COM (AMZN): Free Stock Analysis Report

This article Amazon Unveils Ocelot Quantum Chip After Microsoft, Aims to Slash Error Correction Costs by 90% originally appeared on Benzinga.com

© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.