The US tech giant, founded in 1911, says it has already deployed more than 90 quantum systems — more than all its rivals combined — and is aiming to deliver the first large-scale commercial quantum computer by 2029.

Unlike regular computers, which process information using “bits” — tiny switches that are either off (0) or on (1) — quantum computers use “qubits,” which can be both 0 and 1 at the same time.

That allows them to crunch through enormous numbers of possibilities simultaneously, making them potentially far faster and more powerful than anything available today.

However, quantum computers currently make too many errors to be used reliably outside of research settings.

IBM’s goal is to build a machine that can correct those errors, and contribute to the discovery of new materials, algorithms and molecules for the health sector.

The US$10 billion will go toward research, new facilities, partnerships, and possible acquisitions, IBM said.

The announcement comes a week after IBM and the US Department of Commerce signed a letter of intent to build a dedicated quantum chip factory — called Anderon — in the US.

The US government will contribute one billion dollars to the new company through credits approved in 2022 under President Joe Biden via the CHIPS Act, while IBM will also commit one billion dollars of its own.

Quantum computing has become a global race. France recently announced US$1.7 billion for quantum and semiconductor development, while Germany, China, the UK, and Canada are also major players.

Consulting firm McKinsey estimates the technology could generate US$2.7 trillion in economic value by 2035.

In the US, Google and Microsoft have also been racing to make quantum computing breakthroughs.