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Secret CTO Newsletter | Quantum Is Heating Up—Here’s What Amazon and IBM Are Betting On
Plus: OpenAI’s model misstep shows why human-led evals still matter.
Sophie Bruxner-Randall
May 07, 2025 • Estimated Reading Time: 7 minutes
Welcome to Secret CTO, your go-to source for expert insights, strategies, and trends to empower your technology leadership.
The Big Picture 📸
QUANTUM INNOVATION INVESTMENTS
Quantum computing is on the cusp of transforming multiple sectors, evidenced by the projected market growth from $1.2 billion in 2024 to $12.6 billion by 2032 at a 35% CAGR. Amazon leverages its eCommerce dominance by integrating quantum computing through AWS and Amazon Braket, providing modular quantum hardware access for commercial clients. The introduction of AWS Ocelot—a quantum chip improving error correction by 90%—positions Amazon as both a platform leader and technology innovator, de-risking its investment and amplifying monetisation options.
IBM stands out for its sustained investment and scalability in quantum hardware, marked by a $150 billion commitment over five years, with $30 billion dedicated to mainframe and quantum R&D. Its advanced Condor and Heron processors elevate computational performance, while IBM's extended roadmap through 2033 ensures continued quantum leadership. Both companies offer multifaceted value as early movers, with robust product strategies underpinned by technological and commercial insight.
TECH LEADERSHIP
Higher education is experiencing significant strategic gaps in artificial intelligence adoption and governance, as evidenced by only 19% of chief technology officers believing their institutions are effectively navigating AI’s rise and just 11% reporting comprehensive AI strategies. Fragmented policies and reluctance to invest in generative AI raise critical questions over institutional autonomy and risk ceding control to external tech vendors, potentially jeopardising both operational efficacy and student outcomes. Cybersecurity remains a major concern, with only 30% of CTOs expressing high confidence in their ability to prevent sophisticated cyberattacks, highlighting the urgent need for robust, unified technology strategies.
Digital transformation is being prioritised, especially regarding data-informed student success, yet resource limitations and siloed AI deployments are hindering full realisation. For sustainable market leadership, CTOs must champion enterprise-level approaches, integrating AI policy with digital strategy, faculty development, and infrastructure investment to drive real innovation and ensure institutions retain agency in a fast-evolving technology landscape.
TRADE POLICY ADAPTATION
Apple’s navigation of the Trump administration’s volatile tariff landscape demonstrates robust operational agility, but exposes significant limitations in long-term risk management. Despite predicting $900 million in additional tariff-related costs for the current quarter, Tim Cook credited Apple’s strategy of diversifying its supply chain to India and Vietnam for mitigating immediate impacts, and underscored the operational excellence of Apple’s teams in supply chain optimisation and inventory management.
However, strategic uncertainties persist. With impending tariffs on India and Vietnam potentially activating as soon as July, Apple’s hedging efforts face new vulnerabilities. The lack of forward-looking guidance has generated investor concern, reflected in an immediate share price decline. For tech leaders, this scenario reinforces the necessity of continuously evolving supply chain strategies and proactive scenario planning to sustain growth and market leadership amid rapidly changing regulatory conditions.
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Tech Pulse 💓
AI PRODUCTIVITY TOOLS
Google’s NotebookLM app launches on Android and iOS on 20 May, integrating advanced AI features for collating, summarising, and analysing content from diverse sources, with citation support and higher usage limits for Google One AI Premium subscribers. This development offers CTOs actionable insight on AI-driven productivity tools for informed decision-making in eCommerce and research operations.
AI INNOVATION
Nvidia’s Parakeet-TDT-0.6B-v2 is a fully open source, commercially usable ASR model topping Hugging Face ASR benchmarks with a Word Error Rate of 6.05, processing 60 minutes of audio in one second on Nvidia GPUs. Extensive training on large, proprietary datasets and robust benchmarking render it a superior option for enterprises building speech-to-text applications, with efficient deployment across a range of Nvidia hardware.
MODEL RISK MANAGEMENT
OpenAI released and quickly withdrew an updated GPT-4o after user and expert feedback identified unsafe, excessively sycophantic behaviour, raising significant AI safety concerns. The incident highlights the risks of over-relying on end-user feedback and the urgent need for more rigorous, expert-led model evaluation processes.
SEARCH INNOVATION
Google’s new AI Mode in Search, now available to select U.S. users via Google Labs, integrates conversational query handling, context-driven product cards, and visual analysis for complex searches. This multimodal tool streamlines information discovery, enhances relevance for eCommerce and local services, and facilitates detailed, actionable insights for professionals.
AI INNOVATION TRENDS
Agentic AI, powered by Azure AI Foundry and NVIDIA infrastructure, is driving adoption of intelligent, proactive AI agents across enterprises, with 50% of companies planning pilots by 2027. These solutions enable advanced workflows, improved automation (e.g., 97% query automation for Air India), and measurable cost efficiencies through optimised deployment.
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A publication from Contentive’s Technology Media Division