Microsoft unveils first quantum chip

PLUS: Goodbye SE, hello iPhone 16E

Good morning, tech enthusiasts. Microsoft just unveiled a quantum chip powered by a new state of matter that isn't solid, liquid, or gas – claiming the Majorana 1 could revolutionize quantum computing.

Could this mysterious new quantum state be the breakthrough that finally makes quantum computers practical enough to solve some of humanity's biggest challenges?

In today’s tech rundown:

  • Microsoft unveils Majorana 1 quantum chip

  • Apple introduces its iPhone 16E

  • X aims for a $44B valuation

  • YouTube to launch cheaper Premium Lite

  • Quick hits on other major news

LATEST DEVELOPMENTS

MICROSOFT

Image source: Microsoft

The Rundown: Microsoft has just unveiled Majorana 1, a quantum chip that relies on a new state of matter to unlock quantum computing – Microsoft CEO Satya Nadella says we could see computers solving “industrial-scale problems in years, not decades.”

The details:

  • The chip utilizes topoconductors, a breakthrough material that can observe and control Majorana particles to produce more reliable and scalable qubits.

  • Majorana 1 can potentially fit a million qubits onto a single, palm-size chip – a crucial threshold for quantum computers to deliver game-changing solutions.

  • IBM and Google have also been trying to make qubits – units of information in quantum computing – as reliable as the binary bits used today.

  • The software giant has spent 17 years working on a research project to create the new material and architecture, detailed in Nature.

Why it matters: Microsoft says that utility-scale quantum computers could be up and running within the next 5 to 10 years, out-powering anything we have now. This could enable quantum computers to solve complex industrial and societal problems, such as breaking down microplastics to developing self-healing materials for healthcare.

APPLE

Image source: Apple

The Rundown: Apple officially announced its long-rumored iPhone 16E with a starting price of $599, making it the most affordable smartphone in the lineup – and its AI features mark a huge leap from the third-gen iPhone SE it replaces. 

The details:

  • The sleek new phone comes feature-packed with an OLED screen, Face ID A18 chip, Apple Intelligence, 48MP camera sensor, and 26 hours of video playback.

  • Its 6.06-inch OLED display is about the same size as Apple’s iPhone 16, meaning Apple no longer offers a phone much smaller than its default model.

  • The iPhone 16E introduces Apple’s long-awaited in-house 5G C1 modem, the company’s bid to end its reliance on Qualcomm’s 5G chips.

  • Rather than the Dynamic Island, the Face ID (and selfie) cameras fit into a notch that cuts down from the top of the phone.

Why it matters: Apple is taking a gamble on price, assuming that anyone willing to shell out $429 for the SE might as well go ahead and pay $599. While the phone is missing the classic Touch ID and MagSafe support for wireless charging, it’s now the cheapest way to get one of Apple’s thin-bezel phones with Apple Intelligence AI.

X/TWITTER

Image source: Ideogram/The Rundown

The Rundown: X is reportedly in talks to raise money from investors to bring it to a $44 billion valuation, matching the price Elon Musk paid for the social network in 2022 and marking an incredible turnaround after its shares dropped last year.

The details:

  • This funding would be the first known investment for X since Musk took the company private in 2022

  • The talks come as Fidelity Investments marked down its stake in the company by about 70% in December 2024.

  • X has seen a rebound in ad revenue, with major advertisers like Apple and Amazon returning to X after leaving due to content moderation concerns.

  • Investors too may be drawn to X’s $6 billion stake in Musk's AI startup xAI, which is separately seeking funding at a $75 billion valuation.

Why it matters: Musk and his lucrative business portfolio are riding high with his increasing influence in the Trump administration, with Tesla and SpaceX shares surging since Trump’s reelection. If successful, this funding round could also possibly validate Musk’s controversial changes to the platform back when he took over.

YOUTUBE

Image source: Ideogram/The Rundown

The Rundown: Google’s YouTube is reportedly about to officially launch a cheaper “premium lite” version of its subscription service that offers uninterrupted, ad-free streaming of video content and podcasts, according to Bloomberg.

The details:

  • The new service will offer ad-free access to uninterrupted streaming of “non-music videos” but blocks access to YouTube Music and offline downloads.

  • Price details aren’t yet confirmed, but reports say it could priced at about half the cost of the premium subscription, as much as $18.99 a month for iOS users.

  • It’s set to launch in select markets, including the United States, Australia, Germany, and Thailand.

  • YouTube piloted a no-ads plan dubbed Premium Lite in some European countries beginning in 2021 before cancelling the plan in 2023.

Why it matters: YouTube has been steadily and quietly raising the price of its premium service for years, with some regions seeing increases of up to 58%. So, a budget-friendly option for ad-free binging will likely be welcome and could help YouTube retain users who might turn to rivals like Spotify for ad-free podcasts.

QUICK HITS

📰 Everything else in tech today

OpenAI just announced it is rolling out its AI agent Operator for ChatGPT Pro subscribers in Australia, Brazil, Canada, India, Japan, South Korea, and other areas.

Microsoft Research and Xbox game studio Ninja Theory have partnered to create Muse, a first-of-its-kind generative AI model for gaming.

Google has agreed to pay €326 million ($340 million) to settle a tax claim in Italy covering the period between 2015 and 2019.  

Humane is selling most of its company to HP for $116 million and will stop selling its AI Pin, which stops functioning on February 28.

Bumble announced that it is discontinuing its two acquired dating and relationship apps, Fruitz and Official, citing financial problems.

Instagram is adding new DM features, including message translation, song sharing, message scheduling, group chats, stickers, and interactive features.

Amazon will discontinue its app store for Android on August 20, sending a notice to developers indicating that they will no longer be able to submit new apps to the store.

Facebook announced that live videos will only be stored on the network for 30 days, after which they’ll be deleted, with the change going into effect on Wednesday.  

Niantic, the company behind the augmented reality game Pokémon Go, is reportedly looking to sell its game development business to an undisclosed buyer.

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Rowan, Jennifer, and Joey—The Rundown’s editorial team

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