PsiQuantum’s $10.5bn valuation after BlackRock, Nvidia back quantum plans
PsiQuantum’s quest to build the world's first commercial quantum computer has attracted $1.5bn from elite investors like Nvidia, taking its valuation to $10.5bn.
Taxpayer-backed PsiQuantum, which wants to become the Google of the quantum computing era, swept the world’s venture capital market to secure $1.5bn from top private investors including Nvidia.
Much like Google’s audacious goal to organise the world’s information, PsiQuantum is pursuing an equally ambitious vision: to build the world’s first commercial fault-tolerant quantum computers that have millions of qubits.
It received $1bn from the federal and Queensland governments to build Australia’s first quantum computer – a move which the Queensland Liberal National Party government initially questioned before deciding to proceed.
The taxpayer stands to benefit from the revaluation. But the depth and calibre of institutional investors that it has managed to attract challenges the case for government backing.
Its latest raising has secured backing from BlackRock, Temasek, and Baillie Gifford, which has hoisted its valuation to $10.5bn. New investors include Macquarie Capital, Ribbit Capital and Nvidia’s venture capital arm, NVentures.
Existing PsiQuantum investor and Australia’s biggest venture capital firm, Blackbird Ventures, also participated.
Blackbird partner Michael Tolo said: “This round is another sign of confidence in PsiQuantum and cements the company’s path to deliver the world’s first useful quantum computer.”
“For Australia, this milestone is recognition of the progress and consistency PsiQuantum has made over the past 18 months, and demonstrates Australia’s opportunity to become a global leader in quantum computing.
“We love the PsiQuantum team’s courage to take the path less travelled and we’re proud to continue backing their mission forward.”
PsiQuantum said the funding would allow it to break ground on utility-scale quantum computing sites in Brisbane and Chicago, deploy large-scale prototype systems and further advance the performance of its quantum photonic chips.
PsiQuantum’s co-founder and chief executive, Australian Jeremy O’Brien, said the company was “building the real thing” as many still consider wide-scale use of quantum computing won’t be achieved for at least a decade.
Professor O’Brien said PsiQuantum was founded on a single premise: commercial applications of quantum computing need error correction – and “therefore require a technical strategy that can rapidly scale to millions of qubits”.
He said “many teams around the world have now embraced our view and are now attempting to build systems at this scale, which then brings major engineering challenges in manufacturing, cooling, networking, and control.”
The difference between quantum and classical computing is quantum uses qubits rather than bits. Bits can either be 1 or 0 to process information, while quantum could be both at the same time – like a tossed coin straddling both heads and tails before it lands – a process known as superposition, and which is incredibly powerful. But it’s prone to errors.
“Only building the real thing – million-qubit-scale, fault-tolerant machines – will unlock the promise of quantum computing,” Professor O’Brien said.
“We defined what it takes from day one: it is a grand engineering challenge, not scientific experiments. We tackled the hardest problems first, at the architectural and chip level, and now have best-in-class silicon photonic quantum chips manufactured at a leading US commercial semiconductor line.
“Our architecture is built to scale, our systems are integrating quickly, and with this funding we’re ready to take the next decisive steps to deliver quantum computing’s full potential.”
Co-founder and chief scientific officer Pete Shadbolt said: “Nearly nine years after we started, we have driven the technology to a level of maturity where we are ready to get on and build utility-scale systems.
“We have the chips, we have the switches, we have a scalable cooling technology, we can do networking, we have found the sites, and we have the commercial motive and the government support alike.”
In addition to developing photonic chips which generate, manipulate and measure qubits, PsiQuantum also has designed the cooling, networking, and control systems for utility-scale machines.
It has commissioned a new cooling solution, similar to the 19-inch racks found in a data centre, with the space and capacity to cool hundreds of quantum chips in a single cabinet.
In May, PsiQuantum signed a deal with Linde Engineering, based in Germany, to build a cooling plant which is expected to take several years to complete.
It has said previously that it expects to have the computer operational by the end of 2027.
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