News
Quantum ‘compass’ technology aids in navigation without use of GPS satellites
Scientists from Imperial College London and M Squared, a photonics and quantum technology company, have created a portable quantum accelerometer which enables location tracking without the aid of GPS satellites. As demonstrated at the National Quantum Technologies Showcase 2018 in London, the device utilizes ultra-cooled atoms and lasers to measure position with precision made possible by quantum mechanics. The system is currently designed to be used for navigating large vehicles such as ships and trains, but smaller-scale devices will be available as the technology develops.
Quantum accelerator in the lab. | Credit: Imperial College London
The reliance on global navigation satellite systems such as GPS has a few significant shortcomings that the quantum accelerometer would overcome. Satellite signals can be blocked or jammed, interfering with the systems that rely on the data being provided. Threats such as electromagnetic pulse (EMP) attacks on a massive scale, now closer to reality with nuclear capability developments around the world, would cripple any technology relying on satellite systems.
The financial burden of GPS failure is also a serious consideration driving the innovation behind this device. In M Squared’s press release announcement, it was estimated that each day without GPS services in the United Kingdom would cost the country 1 billion pounds. Since it’s a self-contained system not reliant on external signals, a quantum accelerometer would not be at risk for these types of security or financial fallouts.

A close up of the quantum accelerator. | Credit: Imperial College London
Even without the consideration of electronic attacks and satellite failures, a much smaller version of this technology could overcome day-to-day problems with regular GPS use. Anyone who has ever used a map application in a city environment has likely experienced blockages from the buildings disrupting satellite signals. A quantum accelerator would calculate its position based on its high precision velocity measurements rather than GPS information, thus eliminating never-ending “recalculating” type errors that current mapping devices are prone to receive.
General accelerometers are already found in common devices like cell phones and video game controllers. Overall, they function by calculating changes in the velocity of an object (phone, controller, etc.) and that data is used for whatever its intended purpose. For location-driven applications, however, the measured position loses accuracy without feedback from external sources such as GPS. For example, after a few street turns (or less), a mapping application would need to confer with a satellite to recalculate the new position of the car in motion. The high precision of a quantum accelerometer does not have this limitation, thus eliminating the need for a GPS signal.
When atoms are cooled to ultra-cold levels, their quantum behavior emerges and can then be measured by a laser beam acting as a ruler. The team behind the quantum accelerometer device had already been developing other commercial quantum technologies prior to the current one, so when the need for arose for measuring and cooling atoms, a solution was already in place via the team’s universal laser system developed for gravity measurements. This laser both cools and measures the atoms involved in the accelerometer’s device’s movement calculations.
This quantum device is representative of the transition of quantum mechanics from the science laboratory to real-world applications. Besides navigational solutions, Professor Ed Hinds, Director of the Centre for Cold Matter at Imperial College London, described gravity measurements, mapping gravitational forces to look for minerals, and looking inside vehicles to diagnose problems as a few suggestions for other applications. “[The potential applications] …all come from the fantastic sensitivity and reliability that you can only get from these quantum systems.”
Watch the video below to see the quantum team tell more about the device.
Investor's Corner
Tesla has one big financial question to answer for investors: Morgan Stanley
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
Investor's Corner
SpaceX AI investment gamble will make it a big winner, firm says
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
News
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
