Observation of dipole-dipole interaction in a degenerate quantum gas.

We have investigated the expansion of a Bose-Einstein condensate of strongly magnetic chromium atoms. The long-range and anisotropic magnetic dipole-dipole interaction leads to an anisotropic deformation of the expanding chromium condensate which depends on the orientation of the atomic dipole moments. Our measurements are consistent with the theory of dipolar quantum gases and show that a chromium condensate is an excellent model system to study dipolar interactions in such gases.