While the squeezing of a propagating field can, in principle, be made arbitrarily strong, the cavity-field squeezing is subject to the well-known 3 dB limit, and thus has limited applications. Here, we propose the use of a fully quantum degenerate parametric amplifier (DPA) to beat this squeezing limit. Specifically, we show that by simply applying a two-tone driving to the signal mode, the pump mode can, counterintuitively, be driven by the photon loss of the signal mode into a squeezed steady state with, in principle, an arbitrarily high degree of squeezing. Furthermore, we demonstrate that this intracavity squeezing can increase the signal-to-noise ratio of longitudinal qubit readout exponentially with the degree of squeezing. Correspondingly, an improvement of the measurement error by many orders of magnitude can be achieved even for modest parameters. In stark contrast, using intracavity squeezing of the semiclassical DPA cannot practically increase the signal-to-noise ratio and thus improve the measurement error. Our results extend the range of applications of DPAs and open up new opportunities for modern quantum technologies.

• Received 12 March 2022
• Accepted 22 August 2022

DOI:https://doi.org/10.1103/PhysRevLett.129.123602