Queensland approves PsiQuantum funding for $1bn computer

Queensland’s Crisafulli government will honour a controversial federal-state $940m deal to build the world’s first fault-tolerant quantum computer in Brisbane.

Queensland Treasurer David Janetzki has confirmed to PsiQuantum that the Queensland government would provide its $470m share of funding. Picture: Richard Walker

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The Crisafulli government will honour a controversial joint federal-state deal worth almost $1bn – struck last year between the then Labor state and federal ­governments and US-based tech firm PsiQuantum – to build the world’s first fault-tolerant quantum computer in Brisbane.

Treasurer David Janetzki wrote to PsiQuantum on Friday confirming the Queensland government would provide its $470m share of funding, effectively greenlighting the project after months of uncertainty.

After winning power at the state election in October 2024, the Liberal National government refused to commit to the project, with Mr Janetzki raising concerns about the cost and viability of the first utility-scale, fault-tolerant quantum computer.

But in a statement on Friday, he said the state would go ahead with the deal and closely monitor its progress, noting that investments into new industries “must realise an economic dividend for Queenslanders”.

“We are a government that honours contracts,” he said. “However, Treasury, QIC and the Auditor-General will continue to scrutinise the deal’s execution to ensure taxpayers’ money is respected. This is also an opportunity to advance the research capability of our universities to position Queensland business and industry for the future.”

Weeks after the state election, Mr Janetzki called on treasury officials to examine the inner workings of the complex agreements and the associated contractual commitments.

Queensland Investment Corporation was appointed as the state’s investment manager to oversee the deal, made up of several binding contracts.

PsiQuantum welcomed the decision on Friday, which it said would position Australia as a world technological leader.

“Partnering with the Queensland and Australian governments, we have an incredible opportunity to bolster Australia’s position as a global leader in quantum computing and establish it as an advanced technology and manufacturing hub, anchored by the world’s first utility-scale quantum computer,” a spokesman for the company said.

“This will help create new well-paying technology jobs, ranging from quantum scientists to electrical engineers to software developers, as well as the hundreds of jobs that will be created throughout the project’s construction.”

Mr Janetzki has previously questioned whether the proposed quantum computer would be too expensive to operate, and said it appeared as though PsiQuantum “essentially reached out to the Queensland government as it has failed to attract private capital”.

PsiQuantum will be expected to provide regular updates to Treasury and QIC, while the Queensland Audit Office has indicated it will audit key controls in the government entities managing the significant investment.

The Queensland funding commitment comes three weeks before Mr Janetzki is set to deliver his first budget on June 24.

The Silicon Valley-headquartered tech firm, which has Australian-born co-founders, hired Labor-aligned lobbyists and consultancy firms before striking the $940m deal with the Albanese and Miles governments.

The quantum computer became central to the promotion of Albanese government’s Made in Australia agenda – designed to boost the nation’s sovereign control of future industries – and was poised to create up to 400 highly skilled ongoing jobs and aid the local quantum industry in establishing fresh partnerships overseas. However, the device will be owned and operated by PsiQuantum once it is completed.

It is understood the project is still on track to be operational by the end of 2027.