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Issued on behalf of QSE - Quantum Secure Encryption Corp.

USA News Group News Commentary

VANCOUVER, BC, Jan. 29, 2026 /CNW/ -- Pentagon cyber funding is jumping to $15.1 billion in the 2026 budget^[1]. Defense leaders are now rushing to build quantum-resilient systems to stop AI-driven hacks and future decryption threats. AI-powered hacking is the new standard in 2026^[2]. State-sponsored attackers are now using automated systems to handle up to 90% of their cyber operations. This shift turns weeks-long attacks into minutes. This massive change in national security creates a major opportunity for Quantum Secure Encryption Corp. (QSE) (CSE: QSE) (OTCQB: QSEGF) (FSE: VN8), IonQ (NYSE: IONQ), Booz Allen Hamilton (NYSE: BAH), Palo Alto Networks (NASDAQ: PANW) and Alphabet Inc. (NASDAQ: GOOG, GOOGL) subsidiary Google Cloud, as essential nodes in the sovereign security architecture connecting quantum-resistant cryptography, AI-hardened defense platforms, and mission-grade compute infrastructure.

Leading security analysts warn that organizations delaying post-quantum cryptography adoption risk retroactive decryption of today's encrypted data^[3], forcing immediate migration strategies that prioritize cryptographic agility over disruptive system replacement. The Pentagon's 2026 AI strategy declares this year will "emphatically raise the bar for Military AI Dominance"^[4], directing substantial compute infrastructure expansion and accelerated deployment of AI-native defense capabilities that require quantum-resilient encryption as the foundational security layer protecting classified networks from store-now-decrypt-later attacks targeting the compute backbone of national defense.

Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN8) has joined the Canadian Association of Defence and Security Industries (CADSI), positioning the post-quantum security company within Canada's defence and security ecosystem. CADSI represents more than 900 Canadian companies across defence, security, cybersecurity, aerospace, and advanced technologies, serving as the industry's collective voice to government, military, and international partners.

The membership provides QSE with access to senior decision-makers across the Canadian Armed Forces, federal departments, allied governments, and international defence partners. This structured platform enables collaboration and policy dialogue as governments assess long-term cryptographic resilience against emerging quantum computing capabilities that threaten current encryption standards. The engagement positions QSE to participate in CANSEC, Canada's largest defence and security trade show, while gaining access to member-only market intelligence and policy briefings.

"Joining CADSI is an execution decision," said Ted Carefoot, CEO of QSE. "Defence and government stakeholders are actively evaluating deployable post-quantum controls today, not just long-term narratives. Our focus in FY26 is to convert public-sector engagement into paid pilots and scaled deployments that can contribute to recurring revenue as we move through Q2, Q3, and Q4."

The CADSI announcement follows QSE's recent announcement of its coming participation in the World Defense Show 2026 in Saudi Arabia this February as part of the official Canadian Delegation. That event connects QSE with government and military leaders addressing quantum threats to critical infrastructure.

International momentum continues through a strategic partnership with NUSA Networks and Porta Nusa, securing immediate access to Indonesia's government, financial services, and enterprise sectors. NUSA Networks, one of Indonesia's premier system integrators with over 150 major projects completed, effectively fast-tracks QSE technology into critical national infrastructure.

The technology platform is market-ready and certified. QSE holds Level 2 Certification under the CyberSecure Canada program, while the QSE Group division maintains a distributor agreement with Enzo Plus representing these technologies across 300 channel partners in Southeast Asia. The qREK Software Development Kit allows enterprises to generate quantum-resilient encryption keys backed by authentic quantum entropy, supporting AES, RSA, and NIST-recommended post-quantum algorithms. QSE also captures the secure communications market with QSE-Chat, a mobile application available on Apple and Google platforms for enterprise clients.

With the global post-quantum cryptography market projected to reach $17.69 billion by 2034 and backed by a recent C$2.8 million financing round, QSE is fully funded and operationally ready to execute on its global expansion roadmap throughout 2026.

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In other industry developments and happenings in the market include:

IonQ (NYSE: IONQ) has completed acquisition of Skyloom Global Corp., a developer of lightwave-optics technology for secure, high-performance communications, with the transaction previously announced in November 2025 now closed. The leading quantum company gains Skyloom's expertise in free-space optical communications, photonic systems engineering, and secure data transmission to strengthen its quantum networking roadmap and accelerate work across quantum key distribution and future quantum-enabled communications infrastructure.

"Completing the Skyloom acquisition is another important step as we build the foundation for scalable quantum networking," said Niccolo de Masi, IonQ's Chairman and CEO. "Skyloom brings proven optical and communications expertise to complete our vision for distributed quantum entanglement and ultra-secure connectivity. We look forward to bringing our quantum platform solutions to their existing government, aerospace, and defense customers."

Skyloom CEO Marc Eisenberg and management team have stayed on to lead the business aligned with IonQ's technical roadmap. The acquisition advances IonQ's strategy of combining quantum computing, networking, sensing, and security technologies, following recent acquisitions of Capella Space, Lightsynq, ID Quantique stake and Vector Atomic, giving IonQ ownership of all critical technology layers for distributed quantum entanglement.

Booz Allen Hamilton (NYSE: BAH) has announced availability of Vellox Reverser, a malware reverse engineering and threat intelligence product designed to accelerate cyber defense through resilient agentic AI architecture. The product rapidly automates time-intensive in-depth malware analysis of complex and evasive threats, delivering actionable intelligence and comprehensive countermeasures at machine speed that integrate seamlessly into existing security workflows.

"As AI-driven cyberattacks become one of the primary security concerns in 2026, we're proud to deliver a mission-grade malware analysis product that helps our customers address the most complex threats at speed," said Mujtaba Hamid, executive vice president of product at Booz Allen. "Vellox Reverser will serve as a force multiplier for security teams, embedding decades of Booz Allen cyber defense tradecraft into AI agents designed to replicate world-class malware analysts so our customers can analyze threats at a depth unmatched by other tools and solutions."

The product is now widely available to federal and commercial customers, featuring new Binary and Function Similarity Matching capabilities that dramatically reduce investigation time. In recent evaluations, Vellox Reverser completed sophisticated malware analysis in minutes, evaluating over 120 functions and generating comprehensive reports with indicators mapped to the MITRE ATT&CK framework.

Palo Alto Networks (NASDAQ: PANW) and Alphabet Inc. (NASDAQ: GOOG, GOOGL) subsidiary Google Cloud announced a landmark agreement combining Google Cloud's leading AI infrastructure with Prisma AIRS to secure next-generation digital business. The expanded strategic partnership delivers end-to-end AI security from code to cloud, protecting live AI workloads on Vertex AI and Agent Engine while securing developer tools like the Agent Development Kit with comprehensive AI Posture Management, AI Runtime Security, AI Agent Security, AI Red Teaming, and AI Model Security capabilities.

"Every board is asking how to harness AI's power without exposing the business to new threats," said BJ Jenkins, President of Palo Alto Networks. "Together with Google, we are embedding our AI-powered security deep into the Google Cloud fabric, turning the platform itself into a proactive defense system."

Building on more than 75 joint integrations and $2 billion in sales through Google Cloud Marketplace, Palo Alto Networks is migrating key internal workloads to Google Cloud in a new multibillion-dollar agreement. The collaboration addresses findings from Palo Alto Networks' December 2025 State of Cloud Report showing 99% of respondents experienced at least one attack on AI infrastructure over the past year.

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SOURCES:

1. https://www.military.com/feature/2025/12/14/pentagon-cyber-budget-surges-to-$15B-in-2026.html
2. https://www.justsecurity.org/128568/expert-roundup-emerging-tech-trends-2026
3. https://hbr.org/sponsored/2026/01/why-your-post-quantum-cryptography-strategy-must-start-now
4. https://media.defense.gov/2026/Jan/12/2003855671/-1/-1/0/ARTIFICIAL-INTELLIGENCE-STRATEGY-FOR-THE-DEPARTMENT-OF-WAR.PDF

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NetworkNewsWire Editorial Coverage

NEW YORK, Oct. 29, 2025 /PRNewswire/ -- The rapid ascent of artificial intelligence (AI) isn't being slowed by a lack of computing power, it's being constrained by electricity. As AI expands globally, data centers are consuming energy at an unprecedented rate, outpacing what utilities can deliver, overloading aging grids and driving up costs for consumers. The result is a growing realization: the digital economy urgently needs a new, scalable source of clean energy. One emerging contender is natural hydrogen. The International Energy Agency (IEA) projects that global data-center electricity demand will more than double by 2030 to nearly 945 terawatt-hours (TWh), with AI-optimized facilities expected to quadruple their consumption over the same period. In the United States, data-center power use could also double by 2035, reaching roughly 9% of national electricity demand. Simply put, computing growth is outstripping the pace of grid expansion. That's why leading tech companies and investors are turning their focus to securing energy itself. One of the most promising new frontiers in that pursuit is natural, or geologic, hydrogen. MAX Power Mining Corp. (OTC: MAXXF) (CSE: MAXX) (profile) stands at the forefront of this movement as the first publicly traded company in North America dedicated to commercial natural hydrogen. The company controls about 1.3 million permitted acres in Saskatchewan, including the 124-mile-long Genesis Trend, positioned alongside an industrial corridor and proposed Hydrogen Hub, with multiple high-priority targets. With its mission to meet the soaring energy demands of AI, MAX Power joins leading AI innovators such as Alphabet Inc. (NASDAQ: GOOG), Meta Platforms Inc. (NASDAQ: META), Tesla Inc. (NASDAQ: TSLA) and Advanced Micro Devices Inc. (NASDAQ: AMD), each advancing the intersection of artificial intelligence, infrastructure and sustainable innovation.

• MAX Power Mining Corp. is leading the charge in North America, advancing the commercialization of natural hydrogen, a potentially transformative clean baseload energy source.
• MAX Power currently holds the largest permitted land position in North America for natural hydrogen, approximately 1.3 million acres in Saskatchewan.
• The company's partnership with Saskatchewan's Petroleum Technology Research Centre (PTRC) provides independent technical validation and expert oversight. 
• MAX Power's leadership includes some of Canada's most accomplished geologists and technical experts.
• As the world enters the AI-driven decade, the demand for clean, continuous baseload energy is becoming the defining challenge of modern infrastructure.

Click here to view the custom infographic of the MAX Power Mining Corp. editorial.

Redefining Energy for the AI-Powered World

Artificial intelligence is reshaping the global energy equation, pushing demand for electricity to levels never before seen. According to the IEA, data centers consumed about 1.5% of global electricity in 2024. That figure is projected to more than double by 2030, reaching roughly 945 terawatt-hours (TWh), exceeding Japan's total annual power use today. Even more striking, AI-optimized data centers could see their energy draw quadruple within the same timeframe.

The real constraint now isn't chips or cooling capacity, it's electricity itself. Across the infrastructure ecosystem, a new consensus has formed: "It's about power now." In the U.S. alone, data centers may account for nearly one-half of incremental power demand by 2030, underscoring how AI-driven compute growth is rewriting national grid and investment strategies.

To sustain this kind of 24/7, high-intensity load, energy producers and utilities must look beyond simply adding renewables or transmission lines. The world needs dispatchable, flexible and scalable baseload energy sources that can operate continuously. One emerging answer is geologic (natural) hydrogen, a once-obscure scientific concept now viewed as a potential cornerstone for the next energy revolution. Formed deep underground by chemical reactions between water and iron-rich rocks, natural hydrogen accumulates in reservoirs much like natural gas, and it may exist in volumes large enough to rival known gas reserves.

Unlike hydrogen manufactured through electrolysis (green) or fossil-fuel processes (grey or blue), natural hydrogen is produced naturally by the earth. It requires no electricity input, carries near-zero lifecycle emissions and can deliver reliable baseload power wherever it's discovered. For the energy-hungry AI sector, the appeal is obvious: on-site, clean, nonintermittent power capable of operating continuously. It's why companies like Koloma, a U.S. startup backed by Bill Gates and Jeff Bezos, have described the emerging field as "a global gold rush for buried hydrogen."

As AI's energy demand continues to outpace grid expansion, the focus must shift from marginal renewable growth to foundational new energy sources. Natural hydrogen could be that foundation: an abundant, low-cost and sustainable baseload supply located close to industrial and digital power hubs. This is more than another energy transition; it's the beginning of a new era in which clean, continuous energy becomes the backbone of global compute infrastructure.

Securing the Edge in a New Energy Frontier

In any emerging energy frontier, timing and positioning are everything. The companies that move first to secure land rights, geological data and industrial partnerships are often the ones that define the sector. MAX Power Mining Corp. is leading that charge in North America, advancing the commercialization of natural hydrogen, a potentially transformative clean baseload energy source.

To understand the opportunity, it helps to compare natural hydrogen with the manufactured varieties that dominate today's market. Roughly 99% of hydrogen is produced through fossil-fuel reforming (grey/blue hydrogen) or electricity-powered electrolysis (green hydrogen). Both routes are costly, energy intensive and carbon heavy.

Natural hydrogen, by contrast, forms organically within the earth and can be accessed with traditional drilling and extraction techniques. Once flowing, it delivers low-cost, low-carbon energy that requires no major technological breakthroughs or decades-long buildouts. Early modeling suggests that natural hydrogen could be produced for $0.50–$1.00 per kilogram, compared with $2–$3/kg for blue and $4–$6+/kg for green hydrogen, a potential game changer for energy economics.

The potential scale is immense. Even if only 1–2% of subsurface hydrogen is recoverable, the available resource could supply the world's hydrogen needs for hundreds of years. The U.S. Geological Survey (USGS) estimates that total in-place hydrogen could hold twice the energy content of all proven natural gas reserves on earth.

By moving early, MAX Power aims to validate these estimates, build subsurface knowledge and establish strategic connections to key high-demand users, including data centers, industrial corridors, and fertilizer producers, which all require steady, clean energy. While many talk about hydrogen, few are executing at this commercial, district-scale level, giving MAX Power a true first-mover edge.

Building the Continent's Largest Natural Hydrogen Platform

In natural hydrogen, scale and location matter. MAX Power currently holds the largest permitted land position in North America for natural hydrogen, approximately 1.3 million acres in Saskatchewan, Canada's most prospective hydrogen corridor. This isn't a small exploration block; it's a district-scale energy platform designed for industrial deployment.

At the center of this portfolio lies the 124-mile-long Genesis Trend, situated beside an established industrial corridor and a proposed Hydrogen Hub. This proximity provides immediate advantages, including access to infrastructure, workforce and off-take partners. This naturally lowers transmission and logistics costs while aligning directly with the needs of energy-intensive operations such as AI compute centers.

Beyond the permitted area, MAX Power has an additional 5.7 million acres under application, further expanding its future growth options. In November 2025, the company plans to drill Canada's first deep well dedicated to natural hydrogen, marking a milestone for both the company and the country's clean energy roadmap. By securing top-tier acreage near major industrial infrastructure, MAX Power has positioned itself not as a speculative player but as a frontrunner in infrastructure-scale exploration aligned with global energy transition demand.

Grounded in Science, Backed by Industry Expertise

For an emerging energy category, scientific credibility is essential — and MAX Power has it. The company's partnership with Saskatchewan's Petroleum Technology Research Centre (PTRC), a globally recognized subsurface R&D institution, provides independent technical validation and expert oversight. PTRC's involvement ensures rigorous methodology, reliable data and alignment with best practices developed over decades in oil and gas exploration.

Through this collaboration, MAX Power gains access to advanced modeling, analytical tools and subsurface datasets that strengthen its exploration strategy and reduce geological uncertainty. The result is a program rooted in science not speculation, a key factor as investors and partners assess the commercial viability of natural hydrogen versus manufactured alternatives.

The partnership also gives MAX Power credibility with both industry and capital markets. PTRC's endorsement signals that MAX Power's exploration is serious, data driven and backed by institutional expertise. For prospective off-takers such as industrial users or data-center operators, this level of technical validation reduces risk and increases confidence. Together, science, scale and credibility are helping MAX Power transition from an early-stage explorer to a leader in commercial natural hydrogen development.

Leadership Depth and Conviction Capital

No groundbreaking energy venture succeeds without an experienced team and committed capital. MAX Power's leadership includes some of Canada's most accomplished geologists and technical experts, including the discoverer of Saskatchewan's most significant modern potash deposits. This track record of discovery in the subsurface gives the company an edge in identifying and developing new hydrogen resources.

Backing the team is legendary billionaire resource investor Eric Sprott, who made MAX Power his first investment in the clean-energy and natural hydrogen space. Sprott's participation brings both credibility and long-term conviction, reflecting confidence that natural hydrogen could become the next major energy frontier.

Together, seasoned exploration leadership and strategic capital alignment give MAX Power the staying power to pursue multiyear drilling and development cycles. In a sector where patience and precision are essential, MAX Power's team has the experience, resources and vision to lead. It's a company built not just on promising geology but on people, partnerships and performance.

A Clean Power Blueprint for the AI Age

As the world enters the AI-driven decade, the demand for clean, continuous baseload energy is becoming the defining challenge of modern infrastructure. Multi-gigawatt data campuses require 24/7 reliability, not intermittent renewables or fossil dependency. Natural hydrogen could fill that gap.

MAX Power is leveraging this dynamic directly, deploying its AI-assisted Large Earth Model (LEMI) to integrate vast geological datasets and identify optimal drilling targets in Saskatchewan. In a compelling synergy, the company is using AI to find hydrogen that could ultimately power AI, a closed innovation loop at the intersection of digital and physical infrastructure.

As utilities and governments struggle to manage surging data-center demand while maintaining decarbonization targets, natural hydrogen stands out as a credible, scalable option. If MAX Power achieves commercial flow, the implications would be transformative: clean, firm power delivered near industrial corridors and compute hubs, at costs that could undercut manufactured hydrogen by a wide margin.

This isn't just another incremental energy story; it's a foundational shift. Natural hydrogen has the potential to anchor a new era of low-emission, baseload power precisely where it's needed most. For MAX Power, the opportunity is both industrial and epochal: to establish the model for the exploration, discovery, and production of a clean energy resource capable of powering the AI age.

Leaders Accelerate AI Innovation

Across the technology landscape, advancements in artificial intelligence continue to reshape how organizations operate, build and scale. These initiatives reflect a growing convergence of innovation and infrastructure, designed to push the boundaries of what AI can achieve in both business and society.

Alphabet Inc. is introducing Gemini Enterprise, designed to bring the full power of Google's AI to every employee, for every workflow. According to the company, Gemini Enterprise is designed on the premise that true business transformation in the era of AI must go beyond simple chatbots. "You need a comprehensive and integrated platform that brings all your company's data, tools, and people together in one secure place," the company stated. "That's exactly what we've built. Gemini Enterprise is an AI-powered conversational platform designed to bring the full power of Google AI to every employee for every workflow."

Meta Platforms Inc. announced a joint venture with funds managed by Blue Owl Capital to finance the development and conduct the operations of the Hyperion data center campus in Louisiana. Meta will provide construction management and property management services for the project. This innovative partnership is designed to support the speed and flexibility required for Meta's data center projects and long-term AI ambitions. Meta has 15 years of experience developing, constructing and operating world-class data center facilities.

Tesla Inc. provided an update on its AI software and hardware focus in its 2Q 2025 update. The company launched its Robotaxi service in the first city, Austin, with a safety rider. The company also achieved the world's first autonomous delivery to a customer with a new production Modey Y driving itself an estimated 30 minutes from the factory across town to its new owner's home, including on highways. In addition, the company reported that it expanded AI training compute with an additional 16k H200 GPUs at Gigafactory Texas.

Advanced Micro Devices Inc. announced a six-gigawatt agreement to power OpenAI's next-generation AI infrastructure across multiple generations of AMD Instinct GPUs. The first one-gigawatt deployment of AMD Instinct MI450 GPUs is set to begin in the second half of 2026. Under this definitive agreement, OpenAI will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology starting with the AMD Instinct MI450 series and rack-scale AI solutions and extending to future generations.

As AI continues its rapid evolution, the world's leading innovators are setting the pace for a new digital era, one defined by cleaner, faster and more capable technologies. Their work underscores the growing realization that AI is no longer just a tool but a core foundation of modern progress, connecting data energy, and intelligence in ways that will redefine how humanity works and moves forward.

For more information, visit MAX Power Mining.

This article has been disseminated on behalf of MAX Power Mining, which may include paid advertisement.

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