Tencent and Alibaba Exit Quantum Computing
Tencent and Alibaba have officially pulled out of the Quantum Computing race.
Today is another travel day for the Meerkat Writers; however, we wanted to drop you a quick note about some news that has hit the world of Quantum Computing.
Tencent and Alibaba have officially pulled out of the Quantum Computing race. They say this was a needed step because the technology was too theoretical, complicated, and required too much capital and company resources. While the ladder half of that statement is true—Quantum Computing is expensive, requires time, and a significant amount of resources—we do not think this is the real reason their programs are ceasing operation.
The reality is that the Chinese Communist Party believes the potential for Quantum Computing is too great and that it must remain an initiative on their behalf. Tencent and Alibaba are both beholden to the CCP; therefore, even if they wanted to keep their Quantum Computing programs going, it still couldn't happen. The CCP has realized that the first country to control a fully operational Quantum Computer will be able to change the course of history. Simply put: if a Chinese engineering and research team were to crack the code, they must do it.
What does this mean for Alibaba and Tencent as companies? This will allow their inner workings to focus on their original business models and divert time, money, and attention back to their operations. Nothing will change. If the Chinese Communist Party is the first to get their hands on a fully operational Quantum Computer, these companies will likely reap the benefits.
Your money is your money, and it is not our place to tell you what to do with it—that is for you and your loved ones to decide. However, we refuse to invest in companies based in China, especially ones intimately associated with the CCP, like Tencent and Alibaba. These corporations serve the Chinese Communist Party first and their shareholders, consumers, and fellow citizens second. Therefore, there is no way to predict what will happen to your shares on any given date—that is up to the card-carrying members of the CCP.
*Please Note: Of course, when we at Meerkat talk about and openly criticize the Chinese Communist Party, we are not talking about the Chinese people. We are denouncing the totalitarian party that they are forced to live under. We greatly admire the people of China and the country's storied history, and we hope that someday, the CCP can cease to exist and they can get their country back.
Unless otherwise stated, views and opinions expressed are solely those of the author. This material is not a complete analysis of all material facts respecting any industry, issuer or security and therefore is not a sufficient basis alone on which to base an investment decision. Securities mentioned may not be suitable for all investors. This material is provided for information only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security. Little York Capital LLC.