TL;DR

• Quantum Compass in the London Underground

• Bond Investors and what they’re up to

• Light Based Chips and how AI can Transform Energy

• and more…

NEXUS NEWSFLASH

• NVIDIA has become the world’s most Valuable Company - NVIDIA Edges out Microsoft

• Paris loses spot as Europe’s Largest Equity Market to London - London is Europe’s most Valuable Market

• Electricity Prices in France turn Negative - Renewable Energy has Flooded the Grid

TECHNOLOGY

Testing Quantum Compass in London Underground

London Underground is currently hosting tests for a groundbreaking technology: the quantum compass. This innovative instrument, developed by researchers at Imperial College London, aims to revolutionize navigation by accurately pinpointing locations underground and underwater, where traditional GPS signals fail.

Dr. Joseph Cotter and his team from the Centre for Cold Matter are leading this project. Their setup includes a stainless steel vacuum chamber, rubidium atoms, and an array of lasers that cool the equipment to temperatures just above absolute zero.

The UK's First Commercial Quantum Accelerometer for Navigation

Current navigation systems like GPS are dependent on global navigation satellite systems (GNSS), which are prone to disruptions from bad weather, signal jamming, and obstructions like tall buildings. In contrast, the quantum compass bypasses these issues by using a highly precise accelerometer.

This device measures changes in velocity over time, combined with a known starting point, to calculate future positions. By leveraging the unique properties of supercool atoms, the quantum compass promises unmatched accuracy and reliability.

The potential benefits are vast. This technology could enhance navigation in remote or complex locations, offering a reliable alternative to current systems.

FINANCE

Bond Investors are Paying Up for Active Managers Again

A rocky stretch in debt markets has driven investors towards active bond fund managers. This year, actively managed fixed-income funds have attracted $105 billion in net investments, surpassing the $74 billion that flowed into passive funds, marking the first such shift since 2021.

The appeal of active management is clear: with yields on investment-grade bonds now exceeding 5%, investors are willing to pay higher fees for the potential to outperform in volatile markets.

Over the past year, 74% of active bond funds have beaten their benchmarks, a significant improvement from the Fed’s aggressive rate-hiking period.

Active bond ETFs are growing in popularity because of the lower costs and flexibility. As inflation persists and the timing of rate cuts remain uncertain, active managers are seen as better equipped to adjust strategies and manage risks effectively.

SUSTAINABILITY

Light-Based Chips Could Transform AI's Energy Use

The International Energy Agency predicts AI will consume 10 times more power in 2026 than in 2023. To address this, researchers are exploring optical neural networks (ONNs) that use photons instead of electrons for processing. These light-based chips promise faster and more efficient computation, potentially transforming AI.

Optical signals offer significant advantages over electrical ones. They have higher bandwidth and can carry more information, leading to faster processing with less latency. Moreover, optical systems generate less heat, allowing for more simultaneous operations and reduced energy use.

Lightmatter’s Passage Chip

In 2017, researchers at MIT developed an optical neural network on a silicon chip capable of performing matrix multiplication—a core operation in AI. The potential of ONNs has since garnered massive interest, with researchers exploring various applications where they could provide unique advantages.

However, scaling optical computing to match the capabilities of electronic chips remains a major hurdle. Lab demonstrations need to be expanded significantly to compete with advanced electronic systems like those from Nvidia. Despite the engineering challenges, some researchers believe ONNs will find success in specialized applications, such as improving wireless transmission and reducing interference.

STAT OF THE WEEK