Thread by @KerrisdaleCap

We're short $QBTS. Report at . D-Wave is not true quantum computing, its core tech – quantum annealing – is a commercial dead end abandoned by rest of industry. 20 yrs of ops & financials are pathetic, only massive share dilution has kept it afloat 1/9kerr.co/qbts

$QBTS strategy relies on so-called “hybrid solvers” for optimization problems – which sounds like a combination of quantum and classical but according to former insiders is “almost entirely classical” with quantum little more than a marketing gimmick 2/9

$QBTS deliberately hides the mix of classical/quantum to customers 🚩🚩🚩 but still charges a massive premium for the quantum “brand.” Even formers admitted being uncomfortable with the practice 3/9

We interviewed multiple customers in manufacturing, pharma & logistics who said $QBTS tech provides little/no benefit vs classical. No wonder $QBTS client growth is stalled. Former $QBTS engineer admitted “there is no proof” D-Wave can solve an optimization problem faster than classical

Real-world problems don’t encode neatly in $QBTS’s annealer. The process bloats problem size, burns qubits, and adds instability. More than 90% of quantum resources can be spent just representing the problem –
not solving it 4/9

D-Wave’s solvers don’t scale well. D-Wave systems choke on real-world problems, needing massive qubit overhead just to represent constraints. Classical solvers outperform them – and cost a lot less 5/9

D-Wave reversed its anti-gate model stance in 2021 and began developing its own... but 3+ years later: no roadmap, no benchmarks, no data. Just vibes. The rest of the industry is sprinting toward gate-model quantum. D-Wave has been left behind 6/9

Quantum supremacy? Not quite. D-Wave’s "real-world" breakthrough claimed last month was a toy problem tailored to its hardware. The only thing it simulated accurately was marketing spin 7/9

D-Wave trades at over 50x 2026E consensus revenue – 128x by our estimate. Pure delusion for a company with narrow commercial relevance, flat customer growth and zero path to profitability 8/9

Investing in any public quantum computing co requires betting on the right architecture. D-Wave's annealing tech is not the future — it's a historical footnote the rest of the industry has left behind 📜