Sources: PsiQuantum Raising $750 Million to Push Photonic Quantum Computers Toward Commercial Reality

Insider Brief

• PsiQuantum is raising at least $750 million at a $6 billion pre-money valuation to build a fault-tolerant quantum computer using photonic chips, Reuters reports.
• The company manufactures its light-based qubits on silicon chips at GlobalFoundries and has introduced techniques to improve hardware efficiency and reduce computation time, according to The Quantum Insider’s Intelligence Platform.
• PsiQuantum has secured major public funding in the U.S. and Australia to build utility-scale systems and aims to deliver its first commercial machine by the end of the decade.

Quantum computing startup PsiQuantum is raising at least $750 million at a $6 billion pre-money valuation, betting that light-based chips built with traditional manufacturing tools can deliver a working quantum computer within the decade, Reuters is reporting.

BlackRock is reportedly leading the fundraising effort, which has not yet closed, according to Reuters, citing people familiar with the matter. The funds will support PsiQuantum’s push to build million-qubit machines capable of running fault-tolerant quantum applications.

The Palo Alto-based company is taking a distinct route from rivals like Google and IBM. Instead of superconducting circuits or trapped atoms, PsiQuantum builds its quantum bits — called qubits — using individual photons, or particles of light. These photons move through waveguides on silicon chips, where they’re manipulated using mirrors and sensors. PsiQuantum says this allows it to leverage traditional chipmaking infrastructure to scale production.

According to The Quantum Insider’s Intelligence Platform, the company believes photonics is one of the most viable methods in the near term to build a useful quantum computer. It manufactures chips at GlobalFoundries’ New York facility — one of the world’s largest chip fabs — using technology originally developed for fiber-optic networks.

Over the past year, PsiQuantum has reported progress across multiple fronts. In February, the company announced Omega, a quantum photonic chipset designed for utility-scale quantum computing, featuring high-performance photonic components manufactured at GlobalFoundries. It has also improved its photon detectors and reduced signal loss in optical waveguides. The company developed high-speed optical switches, which are critical for managing how photons move through the quantum circuit, according to the TQI platform.

To boost efficiency, PsiQuantum introduced a compilation technique aimed at error-corrected quantum algorithms. The method, known as active volume compilation, is intended to reduce application run times by roughly 50-fold by using available hardware more efficiently.

Government Interest

The company has drawn significant interest from governments aiming to lead in quantum computing. In July 2024, PsiQuantum partnered with the State of Illinois, Cook County, and the City of Chicago to build what it described as the first utility-scale, fault-tolerant quantum computer in the United States. The project will anchor a new 150-acre quantum and microelectronics park on Chicago’s South Side and is supported by more than $500 million in public funding. A 300,000-square-foot operations center and a cryogenic facility—estimated to cost up to $500 million—are central to the effort.

Australia is making a similar bet. In Q2 2024, PsiQuantum received $617 million (AUD $940 million) in funding from the federal and Queensland governments to build a commercial quantum computer in Brisbane. The company has also announced a new lab at Griffith University’s Nathan campus, scheduled to open in early 2025. It will focus on testing and calibration of photonic subsystems and training quantum engineers.

The company is also collaborating with the UK’s Daresbury Laboratory to develop large-scale cryogenic modules. These refrigeration systems are essential to maintain the extremely low temperatures required for quantum operations.

PsiQuantum Roadmap

PsiQuantum is aiming to deliver its first commercial quantum computing system by 2029 or sooner, a timeline that puts it in competition with other major players. Google said earlier this year that it expects to have practical quantum applications within five years. Microsoft, Amazon and NVIDIA have each made significant new investments in quantum chips or research centers in recent months.

Quantum computers promise to solve problems in chemistry, materials, logistics, and finance that would take classical computers thousands — or millions — of years. But effort face the challenges of high error rates and hardware fragility. PsiQuantum is betting that its light-based, chip-fabrication-friendly approach can overcome those hurdles.

The company believes that its use of scalable manufacturing, coupled with innovations in quantum error correction and system design, positions it to be the first to deliver commercially useful quantum systems. If successful, its machines could help simulate molecules for drug development, model new materials, or solve optimization problems across industries.