Rivals and Liberals’ ire at US computer firm PsiQuantum’s ‘head start’
The Albanese and Miles governments secretly hired Deloitte to run analysis of the validity of PsiQuantum’s plans to build the world’s first fault-tolerant quantum computer.
Deloitte was secretly hired by the Albanese and Miles governments to run commercial, technical and economic analysis of the validity of PsiQuantum’s plans to build the world’s first fault-tolerant quantum computer, just weeks after Industry Minister Ed Husic flew to California to meet the US tech firm.
California-based PsiQuantum was this week awarded $1bn in taxpayer-backed grants, loans and equity to construct the yet-to-be-developed technology in Brisbane, firing concerns from Australian quantum industry rivals that the federal government’s expressions-of-interest process was designed to favour the foreign company.
Mr Husic, who spearheaded the deal for the federal government, met with PsiQuantum’s Australian-born founders at their Palo Alto headquarters in January last year, months before Prime Minister Anthony Albanese announced the government’s national quantum strategy in May.
Details of the due diligence process undertaken primarily by the Queensland government – and released to The Weekend Australian by Treasurer Cameron Dick – reveal the commonwealth and state engaged Deloitte in February last year to analyse the validity of PsiQuantum’s project plan and business model.
Industry sources say a competitive expressions-of-interest process was only started in August, when 21 domestic and international quantum firms were approached to spruik for government funding for their projects.
The Albanese government has so far not provided any details on its hand-picked EOI process that endorsed PsiQuantum.
The February-to-June Deloitte-run due diligence also considered its funding and financing strategy, economic benefits and costs of the project to Australia, and PsiQuantum’s technology approach and comparison to alternatives. Independent experts, PsiQuantum’s investors and partners, and potential customers were also spoken to.
Details released by Mr Dick also reveal Queensland’s due diligence process began in July 2022, around the time the Treasurer met with PsiQuantum CEO Jeremy O’Brien and co-founder Pete Shadbolt at their California headquarters. At that time, Deloitte was engaged to undertake initial checks on the company and its technology, and the University of Queensland professor Andrew White was hired by Queensland Treasury to work out how long it would take PsiQuantum to deliver the world-first computer.
The new details come as Professor O’Brien met with federal Coalition frontbenchers including deputy opposition leader Sussan Ley and opposition science spokesman Paul Fletcher, who asked him about funding, process and intellectual property.
Both the federal Coalition and Queensland Liberal National Party have expressed concern at the lack of public information about the mechanics of the deal.
Ms Ley and Mr Fletcher on Friday made clear to Professor O’Brien their concerns primarily focused on the Albanese government’s processes and decision to invest significant taxpayer funds.
The Weekend Australian understands the PsiQuantum co-founder refrained from providing more detail on funding flows, when the first payment would be made, and IP arrangements.
As revealed by The Australian this week, Professor O’Brien confirmed the company had initially approached Austrade to explore options in Australia. The virtual meeting, facilitated by PsiQuantum’s Liberal-linked lobbyist firm, CT Group, marked the first official contact between PsiQuantum and senior Coalition figures.
In Queensland, LNP Treasury spokesman David Janetzki and deputy leader Jarrod Bleijie confirmed the deal would be a major focus at upcoming budget estimates hearings.
More Coverage
‘I’m challenging you’: Brad Battin’s Boxing Day phone call to Pesutto
In a major development, the shadow police minister has told the Opposition leader he will challenge him for the leadership at Friday’s high-stakes meeting of Victorian Liberal MPs.
Prodigious Boxing Day aid cemented key partnership
John Howard knew he had to act quickly to help Indonesia after the 2004 Boxing Day tsunami unleashed destruction and terror on Australia’s most important neighbour.