{ "docId": "019dd923-622c-750b-8b9a-1cc056790523", "docSlug": "340e94a59fc0", "documentTitle": "IonQ Inc. (IONQ)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2022-05-03 00:00:00", "orientation": "landscape", "aspectRatio": 1.2941177, "pageNumber": 136, "pageCount": 183, "prevPage": 135, "nextPage": 137, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 2, "notes": "The slide uses direct quotes from interviews to contrast with a specific IonQ press release.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-1cc056790523/136", "deckHref": "/decks/019dd923-622c-750b-8b9a-1cc056790523", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-1cc056790523.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-1cc056790523#slide-136", "components": [ { "bbox": null, "kind": "callout", "text": "We note that these comments flatly contradict the QCWare quotes used in a recent IonQ press release, which one of the execs actually pointed out.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-f5d2-7501-bd85-59569025a95b", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "error rate: 30%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-f5d2-7501-bd85-61436a9bff3a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.9, "x": 0.05, "y": 0.78 }, "kind": "paragraph", "text": "QCWare added that IonQ’s customers are unhappy with their experience using the machine\n“I know that the team and a lot of people have publicly said we’re not entirely happy with the IonQ results that we get when we run through Amazon Braket...I don’t know if that was originally in the press release, but that was the sentiment definitely from—I don’t know if I can quote anyone on that—but that was the sentiment from different customers, let me just say different financial customers that I talked to, that maybe the machine that’s on Braket is not getting what they were expecting. We just had our big conference, and it’s just like, this is the sentiment I got from a couple of these hallway conversations. I don’t think you can find this in a press release.” - Executive of a key IonQ partner, QCWare", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "147bf7e9-0ef5-4159-b40f-3db9ffda3481", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.52 }, "kind": "paragraph", "text": "In our interviews however, QCWare stated that IonQ’s error rates are far higher than those reported on its website\nQ: “When you run an actual algorithm, you’re saying the error rate is 78%, or it’s accurate 70% to 80% of the time?”\nA: “No, the accuracy is around 70% or so for the ones that we are observing.”\nQ: “How is it useful to do an algorithm on something that’s 70% accurate? How do you know that the result is correct?”\nA: “That’s exactly what we are quantifying now. I know that the people in IonQ are working on reducing the error a lot, but that’s a problem that is common to all quantum hardware providers.” – Executive of a key IonQ partner", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3b93cda1-9c9f-4198-bd5f-e8476e853743", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "paragraph", "text": "In addition, we spoke with two executives of IonQ partner QCWare, given that IonQ published a paper with QCWare and talks up Goldman Sachs as a collaborator. One QCWare executive indicated that IonQ's error rates are around 30% - radically higher than the 2% or so IonQ claims on its website. A second stated that QCWare and customers are “definitely” unhappy with their results from the machine and that it’s not “what they were expecting.” We note that these comments flatly contradict the QCWare quotes used in a recent IonQ press release, which one of the execs actually pointed out.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e2e6c981-01c7-4707-9205-2bf1fddf3680", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.35 }, "kind": "paragraph", "text": "IonQ press release Sep 2021\nGoldman Sachs, QC Ware and IonQ Demonstrate Quantum Algorithms Proof-of-Concept That Could Revolutionize Financial Services, Other Industries\n“While QC Ware has designed novel practical quantum algorithms and software for enterprise implementation, IonQ has built unique hardware with quantum gates of high enough quality to run these algorithms.” – QCWare quote in IonQ press release", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eabaee14-f6a9-4112-8e1e-78825a068053", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“While QC Ware has designed novel practical quantum algorithms and software for enterprise implementation, IonQ has built unique hardware with quantum gates of high enough quality to run these algorithms.” — QCWare quote in IonQ press release; “No, the accuracy is around 70% or so for the ones that we are observing.” — Executive of a key IonQ partner; “I know that the team and a lot of people have publicly said we’re not entirely happy with the IonQ results that we get when we run through Amazon Braket... that was the sentiment from different customers, let me just say different financial customers that I talked to, that maybe the machine that’s on Braket is not getting what they were expecting.” — Executive of a key IonQ partner, QCWare", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-f5d2-7501-bd85-5f7cba7cded1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.8, "x": 0.05, "y": 0.96 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts; https://investors.ionq.com/news/news-details/2021/Goldman-Sachs-QC-Ware-and-IonQ-Demonstrate-Quantum-Algorithms-Proof-of-Concept-That-Could-Revolutionize-Financial-Services-Other-Industries/default.aspx", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e80613f2-f740-44cc-9a71-c0cfcea153d7", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "1dae9a30-aa61-4cba-b168-53f31d0f1ffb", "evidence": "Contrasting public press release quotes with private interview transcripts.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }