The Frontier

Jason Calacanis hosts Founder University and Angel University in Tokyo and other global locations, focusing on early-stage startups with products in market or pilots, and investing in companies through the Launch accelerator.

Kazu Nakashigi's company, Yakumo, builds quantum computer hardware, specifically Quantum Processing Units (QPUs), which are difficult to create and require many units for useful calculations.

Kazu Nakashigi notes that quantum computing has been '5 to 10 years away' for 30 years primarily due to hardware challenges, making it hard to create special corrugated units (QPUs).

Kazu Nakashigi clarifies a misconception: quantum computers are not universally faster than CPUs or GPUs, but are applied to specific difficult problems like combinations or RSA cryptography.

The required number of qubits for practical quantum computing has significantly decreased from one million to approximately 10,000, while physical qubit counts have increased from 1-10 to 6,000.

Kazu Nakashigi predicts that the necessary and achievable qubit counts will converge around 2030, enabling more widespread real-world applications of quantum computers in data centers, with some already installed in Japan by companies like Toyota.

Quantum calculations currently make many errors, requiring 'quantum error corrections' (QEC) to protect qubit information and build scalable, robust systems; Kazu Nakashigi likens this challenge to the early days of classical computers in the 1980s.

Yakumo employs a neutral atoms methodology for quantum computing, which differs from Google and IBM's superconducting qubits (requiring extreme cooling) or other methods using ions or photons.

Japan's universities have less experience with IP transfer for deep tech startups compared to overseas; common methods for universities to gain equity include stock options, royalties, or cash payments.

Yakumo recently completed a seed extension round, securing an 18-month runway and attracting its first investments in Japan from US-based Alai Ventures and France-based Corination, facilitated by Kyoto University's corporate venture capital arm, Kyoto IAP.

Yakumo grew to nearly 70 employees within 15 months of its April 2025 launch, with 20-30% of its tech staff being non-Japanese, including two of three division heads, leveraging Kyoto's beauty and Kyoto University's deep research background in neutral atoms.

Yakumo aims to be a 'Toyota of quantum computers,' focusing on assembling a full-stack system from specialized components like high-fidelity lasers from Hamamatsu Photonics (Japan) and Nic Photonics (Denmark), rather than building every part.

AI significantly impacts quantum computing, particularly for 'AI for quantum' applications where classical computers and AI/LLMs are used to estimate and correct errors in quantum calculations.

'Quantum for AI' is a future prospect where unique data generated by quantum computers, such as from fluid dynamics calculations, could make AI models smarter, though practical examples are not yet available.

Quantum computers are significantly less power-hungry than classical computers; for certain problems with 40-50 qubits, quantum machines can consume less energy, potentially aiding CO2 reduction.

Kazu Nakashigi believes quantum computers will function as accelerators in hybrid systems alongside classical computers, sharing workloads to make the overall computing environment smarter, rather than fully replacing existing systems.

Kazu Nakashigi suggests that RSA cryptography could be broken by quantum computers within the next 5 to 10 years, warning that encrypted data collected now could be decrypted later, posing a national security risk.

The US government aims for a 'very useful computer' by 2028, reflecting aggressive competition in quantum computing among leading nations like China, the United States, EU, and Japan, which do not fully share their scientific progress.

Karthik highlights the high current cost of quantum computing, with Toshiba's SQBM costing $90/hour and IBM's service costing $3,000/hour.

Kazu Nakashigi claims Yakumo's neutral atom approach could be 100-1000 times cheaper per qubit than superconducting qubits, which can cost up to $1 million per physical qubit.

Yakumo plans to sell full-stack quantum computers to academia for research within five years, then target data centers with racks of quantum computers after 2030, and potentially offer 'quantum as a service' or 'quantum data/entropy as a service' post-2035.

While cryptography is a known application, Yakumo is focused on other new market applications like quantum chemistry, which could revolutionize fields like biology by enabling the creation of virtual cells and cell models.

Alex Kendall states Wayve, a UK-based self-driving startup, was founded in 2017 and pioneered end-to-end learning with an early 20,000-parameter world model when the approach was dismissed.

Wayve recently secured investments from major chip companies (Nvidia, Qualcomm, AMD) and automotive/tech giants (Uber, Nissan, Mercedes, Stellantis, Microsoft), signaling industry validation for their once-contrarian end-to-end AI approach.

Wayve's world models (Gaia 2 and 3) function as advanced simulators, allowing for infinite virtual testing miles, crucial for self-driving safety. They've scaled parameters and now leverage hundreds of petabytes of data from over a dozen automaker partners.

Wayve's AI driver supports diverse sensor configurations (camera-only, radar, lidar), training on varied data to understand sensor signals and limitations. Alex Kendall notes achieving minimum safety for hands-off systems is faster with radar/lidar, but high-volume partners use automotive-grade sensors.

Alex Kendall states Wayve has raised $1.2-1.5 billion, putting them in an excellent financial position with over $2 billion in total capital to pursue deployment and reach free cash flow positive.

Wayve will begin supervised robo-taxi trials this year in London, Tokyo, and 10 other cities via Uber, with consumer vehicle deployment starting next year through partners like Nissan, Mercedes, and Stellantis.

Nissan plans to integrate Wayve's technology into 90% of its vehicles by 2027, equating to about 2.7 million cars per year - double Tesla's current annual volume.

Alex Kendall views Wayve's business model as contrarian, licensing its flexible AI driver to any fleet or automaker rather than building proprietary cars or city-specific fleets, thus enabling the largest potential market.