Nathan Reiff | Published June 23, 2025

D-Wave Goes International With South Korea Partnership

One of the key criticisms among investors reluctant to buy into the tremendous hype surrounding quantum computing firm D-Wave Quantum Inc. (NYSE: QBTS) is the relatively limited nature of its marketability for the time being. The company famously relies on a small number of customers and major deals for its quantum computing systems to generate revenue, which has so far remained low relative to the firm's valuation. In the latest quarter, D-Wave noted just $15 million in revenue, although that was ahead of analyst predictions.

In mid-June 2025, however, D-Wave announced a key international partnership that may significantly expand its potential customer base. The company announced a memorandum of understanding (MOU) with Yonsei University and Incheon Metropolitan City in South Korea. Although it is not yet an official sale announcement, the MOU does open the possibility of a future sale of D-Wave's Advantage2 system to Yonsei’s Quantum Convergence Research Center.

Are this latest development and D-Wave's international expansion enough to ease investors' fears that the quantum company might not be able to boost revenue growth quickly enough to keep pace with a nearly 59% year-to-date (YTD) stock rally and an extraordinary 1,250% increase in the past year?

Expansion Into South Korean Academic and Governmental Spaces

In its announcement, D-Wave says it will partner with the university and the government of Incheon to "advance mutual research and talent development for quantum computing." The MOU also suggests that South Korea, and Incheon specifically, could become a quantum computing hub in the APAC region. D-Wave did not indicate any financial terms of the agreement in the MOU, nor did it offer information about the potential sale price of the Advantage2 system to Yonsei University, should the sale be confirmed at a later date.

In the five trading days leading to June 23, following the announcement of the MOU, D-Wave shares reacted tepidly and in fact declined by more than 1%. Investors might view D-Wave's international expansion as a positive development, but without concrete financial details or news of a new Advantage2 system sale, the immediate effect of the agreement remains uncertain.

While the MOU marks an important step into the APAC region, it is not D-Wave's first foray into the international space. The company has already logged an Advantage sale in Germany, where it will support the Jülich Supercomputing Centre. It also has partnerships with companies in Japan.

How Does the MOU Position D-Wave Relative to Its Peers?

Quantum computing stocks as a group have fallen in the middle of 2025: in the last month, QBTS shares are down about 19%, while competitors like Rigetti Computing Inc. (NASDAQ: RGTI) and IonQ Inc. (NYSE: IONQ) have trended similarly. Quantum companies face a challenging macro environment due to the ongoing threat of tariffs on the cost of supplies and international sales as well as a view among many in the field that the technology will not be widely marketable for many years yet.

Notably, at least one quantum firm stands out for bucking the downward stock price trend observed in the last month. Quantum Computing Inc. (NASDAQ: QUBT) has risen by 28% during that time, thanks in large part to a more tangible bit of progress. The company recently completed construction on its Quantum Photonic Chip Foundry in Arizona, enabling it to begin producing Thin-Film Lithium Niobate (TFLN) chips for AI and data center applications, among others.

D-Wave lacks a similar operation and remains speculative. If more quantum companies develop production facilities for marketable chips with broad applications, those stuck in speculation could be left behind. To be sure, there is still plenty of excitement around D-Wave, as all seven analyst reviews of the company are Buys, but these and other concerns linger. At the same time, investors not interested in picking from among the rapidly-evolving list of quantum computing firms might simply be content to look for an exchange-traded fund (ETF) that provides broader diversification and wide exposure to the industry.