Rigetti Computing Inc. (RGTI) saw its stock surge 7.47% in the after-hours trading session on Thursday, following the announcement of a strategic collaboration agreement with Quanta Computer Inc. to accelerate the development and commercialization of superconducting quantum computing.

Under the agreement, both companies have committed to investing over $100 million each over the next five years, focusing on their complementary strengths. Additionally, Quanta will invest $35 million and purchase shares of Rigetti, subject to regulatory clearance.

The quantum computing industry is poised for rapid growth, with the market expected to reach $1-2 billion per year by 2030. Superconducting qubits, which Rigetti specializes in, are considered advantageous over other quantum computing modalities due to their fast gate speeds and well-established manufacturing techniques from the semiconductor industry.