Startup PsiQuantum’s $750 Million Fund Boosts Its Valuation To $6 Billion

PsiQuantum, a quantum computing startup, is raising a minimum of $750 million, targeting a pre-money valuation of $6 billion, according to media reports.

This funding is led by BlackRock, which has not been completed yet.

This funding comes at a time when competitors are also aiming to build the next generation of quantum computers, and each has its own unique approach to the technology.

This recent investment round highlights the escalating interest in quantum technology, even though it is still nascent. The startup is now valued closer to its competitor IonQ, the primary publicly traded quantum company.

Even though companies like IBM are pioneers in the quantum computing space with its IBM Quantum platform, which includes both hardware and software solutions for quantum computing, its approach focuses on superconducting qubits, which is a different method than PsiQuantum’s photonic qubits.

Photonics at the heart of PsiQuantum

PsiQuantum’s sole mission is to build and deploy the world’s first useful quantum computers. The company was founded in 2016 after its founders discovered a viable way to construct large-scale, fault-tolerant quantum computing systems. Their approach involves leveraging photonics as well as the advanced semiconductor manufacturing industry and its existing infrastructure. Using photonic qubits, which are particles of light, to build a quantum computer that can outperform classical computers in solving complex problems.

Nearly nine years on, PsiQuantum is now producing thousands of quantum chip wafers, testing production cryogenic cabinets and developing fault-tolerant algorithms for deployment on their first systems.

In contrast to numerous quantum startups exploring novel materials, PsiQuantum adopts a distinct approach by leveraging established semiconductor industry practices.

The company employs photonics-based chip fabrication, a technology foundational to fiber-optic communication, and manufactures its chips at a GlobalFoundries facility in New York. The ultimate objective is the production of millions of quantum chips.

Recently, PsiQuantum announced the launch of Omega, a quantum photonic chipset purpose-built for utility-scale quantum computing. According to a featured article by the company in Nature, they mentioned that the advanced components within the chipset are necessary for constructing million-qubit-scale quantum computers and realizing the potential of this transformative technology. 

While the launch will take the company to newer heights, Prof. Jeremy O’Brien, PsiQuantum Co-founder & CEO said, “for more than 25 years it has been my conviction that in order for us to realize a useful quantum computer in my lifetime, we must find a way to fully leverage the unmatched capabilities of the semiconductor industry.” 

This California-based startup was founded in 2016, by expat Australian professors Jeremy O’Brien, Terry Rudolph, Mark Thompson and Dr Pete Shadbolt with the hope to build the “world’s first useful quantum computer.”

The founders had deep backgrounds in physics and quantum mechanics. Jeremy O’Brien had previously worked in the field of photonics, which involves the use of light to represent information, while also developing photonic systems and saw the potential for using photons as qubits (quantum bits) in a quantum computer.

AI Enhancing Quantum Computing

PsiQuantum uses AI in various aspects of its quantum computing development. It helps optimise quantum algorithms, making them more efficient for solving complex problems. It also plays a vital role in quantum error correction, improving the stability and reliability of quantum systems that are sensitive to environmental interference.

Additionally, AI aids in the design and optimisation of photonic qubits, the core of PsiQuantum’s quantum hardware, by simulating their behaviour and identifying areas for improvement. AI is also used in automating processes, helping scale quantum computing systems, and enhancing quantum machine learning (QML) applications, potentially accelerating AI-related tasks. Through these AI-driven advancements, PsiQuantum is pushing the boundaries of quantum computing technology.

Two quantum computers will be built in the coming years by PsiQuantum in collaboration with the Australian and United States governments. The locations for these computers will be Brisbane, Australia and Chicago, respectively.

Competing with Tech Giants

In recent months, Big Techs like Google and Microsoft have dived deeper into harnessing the power of quantum computing chips. While Google’s Quantum AI initiative aims to develop quantum algorithms for machine learning and AI applications, Microsoft’s Azure Quantum platform integrates quantum hardware and software, supporting various quantum processors.

PsiQuantum has entered the race to deliver the first commercial quantum computing system, aiming for a 2029 release or sooner, putting it in direct competition with other major industry players.