Google's announcement of a 'breakthrough' quantum chip leads to a 5% increase in Alphabet shares.

• On Tuesday, Google's shares increased following the company's presentation of "Willow," its newest quantum computing chip.
• It is predicted that quantum computing will be beneficial for extensive simulations and code cracking, but this may not occur until many years or decades have passed.
• Several technology business figures, including Tesla CEO Elon Musk and OpenAI CEO Sam Altman, praised Google's announcement on social media.

On Tuesday, the day after the company announced its latest quantum computing chip as a "breakthrough," shares rose 5% during trading.

On Monday, Google unveiled "Willow," a quantum computing chip that outperformed its predecessor on a benchmark in 2019. Like other quantum chips, Willow uses "qubits" to represent numbers instead of transistors used in traditional semiconductors. Google claims its technology can reduce errors faster than they occur as quantum chips grow, which has been a challenge in developing better quantum computers.

Google announced that Willow is the second stage in a six-stage plan to create quantum computers capable of performing practical applications. The current chip contains approximately 100 qubits, but the company aims to eventually construct a system with 1 million qubits.

Google's blog post stated that Willow brings us closer to developing algorithms that can't be replicated on conventional computers and provides evidence that reality is made up of parallel universes.

Sundar Pichai, CEO of Google, stated that Willow is a crucial step in their journey to create a practical quantum computer with applications in areas such as drug discovery, fusion energy, and battery design, among others.

Quantum computing is expected to be useful for large-scale simulations and code breaking, but it may not be possible for years or decades. Besides Google, Nvidia, Microsoft, and IBM are also working on the technology, along with researchers at startups and universities.

Several technology business figures, including Tesla CEO Elon Musk and OpenAI CEO Sam Altman, praised Google's announcement on social media.

"One day, we should perform a quantum cluster in space with Starship," Pichai responded to Musk.