The artificial intelligence (AI) arms race has yet to wrap up, but big tech is already starting a new one: the quantum computing arms race. Several big tech companies have seen the raw computing power required to create these cutting-edge AI models, and it's clear that classical computing will work, but quantum computing is starting to become feasible for similar price points.

As a result, many top computing companies are announcing various breakthroughs in the quantum computing field, with Microsoft (MSFT -1.51%) being the latest to do so. It announced its Majorana 1 quantum chip on Feb. 19, and this announcement positions Microsoft well in the quantum computing race.

Microsoft's breakthrough pushes it closer to winning the arms race

Quantum computing is far more powerful than traditional computing because of how it stores information. Classical computing stores information as 1s or 0s, but quantum computing stores information in a superposition between 1 and 0. This allows the technology to store much more information per qubit (the basic quantum computing information units) versus a bit (classical computing information unit).

However, because quantum computing information isn't exactly a 1 or a 0, errors are introduced into the platform. This is a primary issue that quantum computing competitors are trying to solve, and the one that solves this issue first may win the entire quantum computing arms race.

Microsoft took one step closer to the finish line with the release of its Majorana 1 chip. This chip uses a different state of matter than the classic solid, gas, or liquid states -- a topological state. This innovation allows Microsoft to digitally control a particle while maintaining the speed and size optimal for computing.

Another key point about this chip is that it is scalable. It currently only has eight topological qubits, but it can scale to 1 million. Microsoft claims that this is the threshold for commercially viable applications, so Microsoft's chip will be able to be fine-tuned to work in commercial computing functions. This is another huge point, as Microsoft can focus on utilizing its primary chip design rather than designing multiple chips along the way.

This is an exciting breakthrough, and it contributes to Microsoft's main point: Quantum computing will be viable in years, not decades. It means investors need to consider quantum computing in their portfolios, as its use might become more widespread quicker than you'd think.

Investing in big tech companies like Microsoft is a great way to play this trend

However, there's still no good time frame for when exactly quantum computing will become commercially viable. While Microsoft says that its chip will be capable of commercial use within a few years, the market also has to see value, as these chips will likely be incredibly expensive.

Furthermore, it's unlikely quantum computing will ever be viable for basic tasks that 99% of people utilize computers or smartphones to accomplish. As a result, there is still the overarching question of how much demand there will be for quantum computing.

Nobody knows what the demand for quantum computing will look like, how quickly it will arrive, or how mainstream it will become. As a result, I think investing in big tech companies that have quantum computing investments is the best way to play this trend. Microsoft is obviously in a good position, but so is Alphabet (GOOG -2.11%) (GOOGL -2.14%). Nvidia (NVDA -2.80%) is also holding a quantum computing day on March 20 at its annual GTC conference, so investors will hear what it's up to.

As a result, I think that continuing to invest in the same companies that are leading the AI arms race is a good strategy for quantum computing because these companies have massive resources to invest in the technology.

While I don't know if Microsoft will win the quantum computing arms race, its Majorana 1 chip is a step in the right direction. However, to declare it the winner is far too premature, and investing in Microsoft based on its current business state is a far better mindset than purchasing the stock solely due to its quantum computing potential.