Rail Vision Ltd. (NASDAQ:RVSN) shares rallied 20% after the rail safety technology provider revealed it has taken a 51% controlling stake in Quantum Transportation, a company focused on quantum computing and AI-driven machine learning solutions for error correction.
The deal represents a strategic move for Rail Vision as it seeks to combine quantum-AI innovation with its existing railway safety technologies. In a corporate update, CEO David BenDavid said Quantum Transportation has created a transformer-based neural decoder that surpasses traditional quantum error correction methods in simulation environments.
Although the quantum platform was originally developed for advanced research applications, Rail Vision is evaluating ways to apply the technology to its rail-focused AI systems. Potential use cases include improved predictive safety analytics, enhanced anomaly detection, and more advanced autonomous rail operations.
The company also pointed to commercial progress made in 2025. Highlights included a MainLine system order from a freight rail operator in Central America, a $335,000 follow-up purchase from a Latin American mining group, and an ongoing collaboration with Israel Railways.
Rail Vision has additionally expanded its footprint in India through a memorandum of understanding with Sujan Industries. That partnership led to a Proof of Concept project launched in January 2026, showcasing the MainLine platform to officials at Indian Railways.
Management underscored the firm’s solid balance sheet, noting it carries no debt and holds sufficient cash reserves to advance its strategy. Priorities include converting pilot programs into revenue-generating contracts, scaling sales and marketing efforts, broadening geographic reach, and integrating the newly acquired quantum-AI capabilities into its core offerings.