Amazon (AMZN) has put itself in the quantum computing race, debuting its new first-gen quantum chip, Ocelot. The company’s first-generation chip for quantum computing was unveiled on Thursday, a week after Microsoft revealed its Majorana 1 quantum chip. The chip is a big step for Amazon in the AI and quantum race, while also giving its AWS platform new chip technology.

“We believe that scaling Ocelot to a full-fledged quantum computer capable of transformative societal impact would require as little as one-tenth as many resources as common approaches, helping bring closer the age of practical quantum computing,” AWS wrote in a blog post. Through this new approach with Ocelot, AWS researchers have, for the first time, combined cat qubit technology and additional quantum error correction components onto a microchip that can be manufactured in a scalable fashion using processes borrowed from the microelectronics industry.

“With the recent advancements in quantum research, it is no longer a matter of if, but when practical, fault-tolerant quantum computers will be available for real-world applications. Ocelot is an important step on that journey,” said Oskar Painter, AWS director of Quantum Hardware. “In the future, quantum chips built according to the Ocelot architecture could cost as little as one-fifth of current approaches, due to the drastically reduced number of resources required for error correction. Concretely, we believe this will accelerate our timeline to a practical quantum computer by up to five years.”

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Amazon Becoming a Leader in AI and Quantum Computing?

There is no denying that the AI sector has been thriving over the last year. With so much competition, a race to the top of the industry has been underway as some of the biggest companies in the world jockey for position. The newest Ocelot chip is Amazon’s effort to take the top spot, and can send its stock surging if its launch is successful.

Entering 2025, analysts were extremely bullish on Amazon (AMZN), and early on, the stock hasn’t been promising. As of this weekend, the stock is nearly down 5% year-to-date. Despite this, one of the most prominent advisory firms, Bourgeon Capital, still sees Amazon as a top-5 AI stock. While this latest chip is another driver for that argument, more institutions are believing in the company’s growth in that sector.