Quantum gets post-quantum cryptography tech through Entanglement

Quantum is partnering post-quantum security business Entanglement to provide a a regionalized AI Data Storage service – a new departure for Quantum – and it’s put out preliminary second fy2025 quarter revenue numbers.

Let’s get the results out the way and then move on to the interesting bit. Quantum expects its revenues to be $62.5 million, 19.1 percent down year/year and near the $63 million high-point estimate made a quarter ago. It says its gross margin should be 37.5 percent which is up 0.1 percent Y/Y and 0.2 percent Q/Q indicating improving cost controls as operating expenses go down.

We can reasonably expect revenues to rise as the new CRO energizes and reshapes the selling efforts.

Now, Entanglement and post-quantum security. Quantum’s data storage business is nothing to do with quantum computing. Post-quantum cryptography is nothing to do with quantum computing directly, but it provides encryption technology resistant to quantum computer-based decryption efforts.

Entanglement was started up in 2017 to develop software products combining quantum computing ideas and AI. It was founded by chairman and CEO Jason Turner, as a quantum-AI research and development business. There is no available information about its funding and we think it may have received government and academic grants, and sponsorships, rather than seed and VC rounds. It is not your average tech startup, being more like a tech holding company or incubator.

Entanglement has three product sets and a developing service:

• Prepaire – a predictive analytics biosurveillance platform to help public health agencies, research institutions, and healthcare organizations worldwide detect and respond to biological threats.
• seQure – a cyber security zero-day anomaly and outlier detection technology called Ground Truth.
• Hyper Intelligence – using quantum-inspired algorithms to optimize AI infrastructure by significantly reducing time and cost required to train large language models (LLMs) for Gen AI applications.
• ESP – Entanglement Storage Platform which is a regionalized AI and HPC data storage service to deliver secure, scalable and post-quantum-ready AI infrastructure.

Hyper Intelligence and seQure are separate incorporated businesses. ESP is being co-developed by Quantum and Entanglement with an MOU defining their roles and responsibilities. Their partnership has three aspects, with the first being the integration of post-quantum encryption (PQE) into Quantum’s storage products to make them more secure. The second is surprising, being the use of Entanglement’s quantum logic and AI algorithms to harness unused compute capacity across Quantum’s distributed storage clusters “to drive breakthrough performance and efficiency for large-scale AI and high-performance computing (HPC) environments.” It sounds a little like a decentralized compute cloud.

The third partnership element is ESP, and it will be first introduced at Entanglement’s West Palm Beach, Florida data center, and is “expected to demonstrate secure, scalable AI dataset integration capable of connecting regional computing infrastructure across North America, the Middle East, Africa, and Europe.”

The PQE part is concrete but the other two are big on promises and low, quite low, on details and actual deliverables. The dataset integration seems similar to the technologies providing global namespace and file/object availability across geo-distances seen with Arcitecta and Hammerspace. These took years to develop and this global dataset integration concept can’t be viewed as anything other than an aspiration until more details become visible.

Quantum CEO Hugues Meyrath said: “Entanglement’s vision for regionalized, AI-driven infrastructure aligns perfectly with Quantum’s mission to deliver intelligent, secure, and future-proof data storage platforms. This collaboration strengthens our ability to serve customers operating at the intersection of AI, security, and compliance.”

Entanglement’s Chairman and CEO Jason Turner said: “Integrating our quantum logic with Quantum’s storage fabric transforms idle data into active intelligence. Together, we’re unlocking computational capacity hidden in global storage networks and securing it with post-quantum encryption—turning the world’s data layer into a high-performance, sovereign AI backbone. Customers will be able to tap into global AI computing infrastructure, giving them immense flexibility, control, and security over their valuable AI datasets.”

Quantum and Entanglement plan to offer ESP demonstrations and integrated post-quantum encryption capabilities in 2026, with scalable global deployment expected to follow.

For now the Entanglement partnership is an interesting side show to Quantum’s main focus of getting its business back into a revenue growth and profit-generating state. A first test of that will come with its third quarter results in three months time.

Bootnotes

Entanglement is a WEKA customer and a WEKA Spotlight blog describes what’s going on between the two.

Turner’s CV, including being a pianist and Music Synthesis major at Berklee College of Music can be read here.