Defense Budgets Pivot to Quantum As Code War Escalates

December 16, 2025 - By: Baystreet Staff


Issued on behalf of QSE - Quantum Secure Encryption Corp.

VANCOUVER – Baystreet.ca News Commentary — The Pentagon has elevated quantum technology to the center of its battlefield strategy, with RDT&E spending surging past $179 billion and quantum now anchored as a Critical Technology Area for U.S. military dominance[1]. Meanwhile, CISA and NSA face December 1, 2025 deadlines to identify viable post-quantum cryptography products as the federal government races to quantum-proof sensitive systems before adversaries deploy cryptanalytically relevant quantum computers[2]. As defense agencies worldwide scramble to secure infrastructure against quantum decryption, a handful of early movers are positioning themselves at the intersection of this unprecedented technology shift, including QSE - Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN8), Palantir Technologies (NASDAQ: PLTR), Rigetti Computing, Inc. (NASDAQ: RGTI), D-Wave Quantum Inc. (NYSE: QBTS), and Quantum Computing Inc. (NASDAQ: QUBT).

Quantum computing in aerospace and defense is projected to surge from $3.127 billion in 2025 to $12.16 billion by 2035 at a 14.54% CAGR, driven by quantum-secured defense communications and encrypted military operations[3]. National security has become the ultimate competitive moat, as China and Russia expand quantum communication networks while investing heavily in quantum magnetometers and navigation systems designed to nullify U.S. stealth advantages, forcing unprecedented capital flows into quantum-resistant infrastructure across government and defense sectors[4].

QSE - Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN8), formerly Scope Technologies Corp., has announced a strategic reseller and integration partnership with NUSA Networks and its sister company Porta Nusa, marking the company's official entry into the Indonesian market. The dual-channel agreement positions QSE's quantum-secure data protection solutions for broad adoption across government, financial services, and enterprise sectors throughout Indonesia.

For more than a decade, NUSA Networks has operated as one of Indonesia's premier system integrators, working with over 30 global technology partners and delivering more than 150 major projects for large enterprises, government agencies, and financial institutions. With more than 100 employees dedicated to cybersecurity, managed services, and data center solutions, NUSA Networks is recognized as a trusted provider of secure infrastructure for mission-critical environments. Porta Nusa, its distribution arm, represents leading global technology brands and will enable nationwide availability of QSE technologies through existing cybersecurity providers.

"NUSA Networks and Porta Nusa are exactly the type of partners we want representing QSE in strategic international markets," said Ted Carefoot, CEO of QSE. "Their deep expertise in cybersecurity, long-standing relationships with government and enterprise clients, and proven ability to deploy secure, large-scale systems make them an ideal channel for QSE's quantum-secure data protection solutions."

Under the agreement, NUSA Networks will offer QSE's quantum-secure Vault, QSE-Chat mobile application, and broader product suite directly to its established client base, while Porta Nusa will onboard and support QSE solutions across its extensive distribution and channel partner network, enabling rapid scaling across Indonesia's expanding cybersecurity market.

The partnership follows QSE's recent launch of qREK, a Software Development Kit enabling developers and enterprises to locally generate quantum-resilient encryption keys backed by authentic quantum entropy. Built on zero-trust architecture, qREK supports AES, RSA, and NIST-recommended post-quantum algorithms. The company also rolled out QSE-Chat, a quantum-secure mobile messaging app now available on Apple App Store and Google Play Store exclusively for enterprise clients.

In November, QSE achieved Level 2 Certification under the CyberSecure Canada program, while the QSE Group division signed a distributor agreement with Enzo Plus, representing quantum-resilient technologies across more than 300 channel partners throughout Southeast Asia.

The global SSO market is projected to exceed US$6 billion by 2032, while the post-quantum cryptography market is expected to reach $17.69 billion by 2034. The company secured expansion capital through a C$2.8 million financing round backed by institutional investors.

CONTINUED… Read this and more news for QSE - Quantum Secure Encryption Corp. at: https://usanewsgroup.com/2024/04/26/the-currency-of-tomorrow-why-investing-in-cutting-edge-ai-recognition-tech-could-mean-big-money/

Palantir Technologies (NASDAQ: PLTR) has secured a three-year contract renewal with DGSI, France's domestic intelligence agency, extending a partnership that has been ongoing for nearly a decade. The agreement covers supply of Palantir's proprietary software platform along with integration, support, and assistance services necessary for deployment and operational use in support of national security missions including counterterrorism operations.

"We are very proud to support the DGSI in its crucial work in the service of France and its fight against terrorism," said Alex Karp, CEO of Palantir. "This contract renewal reaffirms Palantir's commitment to serving the interests of France since 2016, and ensuring the security of the French people."

Palantir's solutions supported the French internal intelligence service during critical national events including the 2024 Olympic and Paralympic Games. The renewal confirms Palantir's role as a technological partner to French institutions responsible for national security and reaffirms its commitment to providing cutting-edge capabilities with the level of rigor and reliability required for essential missions.

Rigetti Computing, Inc. (NASDAQ: RGTI) reported third quarter 2025 revenues of $1.9 million and remains on track to deliver its 100+ qubit chiplet-based quantum system with an anticipated 99.5% median two-qubit gate fidelity by the end of 2025. The company secured purchase orders totaling approximately $5.7 million for two 9-qubit Novera quantum computing systems and was awarded a $5.8 million three-year contract from the Air Force Research Laboratory to advance superconducting quantum networking in collaboration with QphoX.

"This past quarter, we saw strong momentum with both the demand for our on-premises quantum computers and the development of collaborations to advance our own R&D and the quantum ecosystem more broadly," said Dr. Subodh Kulkarni, CEO of Rigetti. "Our new collaborations with the Centre for Development of Advanced Computing (C-DAC) and Montana State University (MSU) showcase the increasing maturity of the quantum computing ecosystem."

The company expects to deploy a 150+ qubit system by or around the end of 2026 with an anticipated 99.7% median two-qubit gate fidelity, and a 1,000+ qubit system by or around the end of 2027 with an anticipated 99.8% median two-qubit gate fidelity. As of November 6, 2025, cash, cash equivalents and available-for-sale investments totaled approximately $600.0 million.

D-Wave Quantum Inc. (NYSE: QBTS) has formed a new business unit dedicated to driving adoption of its quantum computing products and services with the U.S. government, led by seasoned government contracting executive Jack Sears Jr. as vice president of U.S. government solutions. The formation responds to growing demand from U.S. Department of War leadership, including Undersecretary of War for Research and Engineering Emil Michael, who added quantum technologies as a critical technology focus.

"The call to use quantum technologies to address our nation's interests is increasing, as the U.S. government faces complex challenges that require more powerful and agile problem-solving resources to protect our nation," said Dr. Alan Baratz, CEO of D-Wave. "By formalizing a U.S. government-focused business unit under Jack's leadership, we aim to facilitate the rapid development of quantum applications that address national security, defense, and infrastructure challenges."

Sears brings more than 25 years of experience developing and executing organizational growth strategies for companies serving the federal government in defense and aerospace industries, including full P&L responsibility, proposal development, and U.S. federal acquisition compliance. D-Wave recently announced that its Advantage2 quantum computer is now operational at the Alabama headquarters of Davidson Technologies, Inc., a mission-driven technology company supporting U.S. Department of War and commercial aerospace customers, where the system is expected to address mission-critical government problems and eventually run sensitive applications.

Quantum Computing Inc. (NASDAQ: QUBT) has signed an agreement to acquire Luminar Semiconductor, Inc., a wholly owned subsidiary of Luminar Technologies, Inc. (Nasdaq: LAZR), in an all-cash transaction valued at $110 million that will bring a portfolio of core photonic technologies, patents, and a highly experienced team of engineers and scientists. The acquisition will strengthen the company's supply chain, substantially increase the engineering depth of its workforce, and accelerate the advancement of compact, fully-integrated quantum systems for commercial deployment.

"This acquisition represents a meaningful step forward in our strategy to develop and scale practical, integrated quantum solutions," said Yuping Huang, CEO and Chairman of Quantum Computing Inc. "The post-closing revenue opportunity will be two-fold: to serve and expand LSI's current non-quantum customer base; and to utilize LSI's technology and products to drive the commercialization of quantum appliances in our targeted markets."

Luminar Semiconductor manufactures and sells a portfolio of photonic components that are important building blocks on Quantum Computing Inc.'s technology roadmap. The transaction requires bankruptcy court approval pursuant to a Section 363 sale process as Luminar Semiconductor's parent Luminar has initiated voluntary chapter 11 cases, with Quantum Computing Inc. serving as the proposed stalking horse bidder entitled to customary bid protections and expecting to close by the end of January 2026.

Article Sources: https://usanewsgroup.com/2024/04/26/the-currency-of-tomorrow-why-investing-in-cutting-edge-ai-recognition-tech-could-mean-big-money/

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SOURCES CITED:

1. https://thequantuminsider.com/2025/11/18/pentagon-elevates-quantum-tech-to-core-of-future-battlefield-strategy/

2. https://www.whitehouse.gov/presidential-actions/2025/06/sustaining-select-efforts-to-strengthen-the-nations-cybersecurity-and-amending-executive-order-13694-and-executive-order-14144/

3. https://www.openpr.com/news/4303545/quantum-computing-in-aerospace-defense-market-size-to-reach-usd

4. https://www.csis.org/analysis/quantum-sensing-and-future-warfare-five-essential-reforms-stay-competitive


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