Secrecy over $470m PsiQuantum bet

Hidden behind confidentiality agreements, Ed Husic’s $470m bet on a yet-to-be-developed quantum computer dwarfs 22 years of funding on the technology.

Prime Minister Anthony Albanese, Queensland Premier Steven Miles and Industry Minister Ed Husic announce almost $1bn in taxpayer-funded equity, grants and loans for PsiQuantum to build a yet-to-be-developed quantum computer in Brisbane. Picture: Tertius Pickard/NCA NewsWire

Industry Minister Ed Husic’s “confidential” $470m bet on a yet-to-be-developed quantum computer built by US-based tech firm PsiQuantum dwarfs the $171m in federal funds for quantum computing over the past 22 years.

The controversial Future Made in Australia investment, involving almost $1bn in taxpayer-funded equity and loans matched by the Queensland government, remains shrouded in secrecy, with the federal government hiding behind confidentiality agreements.

Mr Husic, Anthony Albanese and Queensland Premier Steven Miles announced the funding deal for PsiQuantum on April 30, declaring the company would build the world’s first fault-tolerant quantum computer in Brisbane.

Responding to a series of Questions on Notice from NSW Liberal senator Andrew Bragg, the Department of Industry and Science refused to provide details about the invitation-only expression of interest process launched in August last year.

Following a visit by Mr Husic to PsiQuantum’s Silicon Valley headquarters in January last year, the company engaged Labor-linked lobbyists and consultants to help prepare its bid for federal and state government support.

The department told Senator Bragg the government had signed a “confidentiality agreement with PsiQuantum” and would not divulge any further information surrounding the EOI process that quantum industry leaders say favoured the US-based company.

It also confirmed that between January 2002 and March 2024, federal governments had allocated “at least $170.91m to quantum computing hardware and/or quantum computing software”.

“In addition, a range of initiatives make funding available to the quantum industry alongside other sectors. For example, under the National Reconstruction Fund, $1bn is targeted towards enabling technologies such as quantum,” the department said.

“The department ran a EOI process in August 2023, inviting responses from 21 domestic and international quantum computing companies identified as having relevant capabilities. Details of which participants were approached are confidential. The department does not have a list of the processes other governments have undertaken in relation to quantum computing capability.”

The response confirmed Mr Husic met with PsiQuantum representatives in January last year, accompanied by staff from his office and senior commonwealth officials. No third parties were present at the meeting with PsiQuantum. The Australian previously revealed Mr Husic first met with PsiQuantum in October 2022 after the federal election.

In May last year, PsiQuantum hired Brookline Advisory to engage with federal government offices. Brookline Advisory is run by Lidija Ivanovski and Gerard Richardson, who worked as chief-of-staff for Labor deputy leader Richard Marles and communications director to Jim Chalmers respectively. The department response said “PsiQuantum Pty Ltd is a registered company listed on the Australian Securities and Investments Commission’s Organisation and Business Name register” and that the commonwealth has “a confidentiality agreement with PsiQuantum”.

Senator Bragg said: “Labor’s cover-up of their tender process only gets murkier. Failing to say anything about the 21 interested businesses is a vote of no confidence in Australian industry.”

In last Tuesday’s budget, the government allocated an additional $27.7m over 11 years for the Department of Finance, Department of Foreign Affairs and Trade, Treasury and Department of Industry and Science to “manage and provide oversight” of the PsiQuantum investment.

The budget papers said details were “not for publication due to commercial sensitivities”.