PsiQuantum Raises $1 Billion from BlackRock and Major Investors to Build Commercial Quantum Computers in Brisbane and Chicago
PsiQuantum's $1 Billion Quantum Gambit: Silicon Photonics Meets Industrial Reality
PsiQuantum announced on September 10, 2025, that it has secured $1 billion in Series E funding to build what the company claims will be the world's first commercially useful, fault-tolerant quantum computers. The financing round, led by funds managed by BlackRock alongside Singapore's Temasek and Scotland's Baillie Gifford, values the Palo Alto-based company at $7 billion.
The funding brings together an expansive investor consortium including new participants such as NVentures (NVIDIA's venture capital arm), Macquarie Capital, Ribbit Capital, Qatar Investment Authority, Type One Ventures, Counterpoint Global from Morgan Stanley, 1789 Capital, and S Ventures. Existing investors including Blackbird, Third Point Ventures, and T. Rowe Price Associates also participated in the round.
A fault-tolerant quantum computer is designed to operate reliably despite the extreme fragility and error-proneness of its qubits. This resilience is primarily achieved through quantum error correction, a crucial technique to mitigate errors and enable stable quantum computations.
PsiQuantum intends to use the capital to break ground on utility-scale quantum computing installations in Brisbane, Australia, and Chicago, deploy large-scale prototype systems for architectural validation, and advance performance of its quantum photonic chips. The company's approach centers on silicon photonic quantum computing, with chips designed by PsiQuantum and manufactured at GlobalFoundries' Fab 8 facility in New York.
The Manufacturing Revolution Hidden in Plain Sight
This manufacturing partnership represents a fundamental departure from traditional quantum computing development. While competitors build custom laboratory systems, PsiQuantum produces quantum components on standard 300-millimeter wafers alongside conventional electronics, leveraging existing semiconductor infrastructure rather than creating entirely new production facilities.
The breakthrough lies in PsiQuantum's integration of Barium Titanate (BTO), one of the world's most advanced electro-optic materials, into commercial semiconductor processes. These BTO-enabled optical switches represent the missing component for scaling photonic quantum systems beyond laboratory demonstrations. The material's integration required developing entirely new manufacturing techniques, which PsiQuantum now produces at its California facilities before shipping to GlobalFoundries for final integration.
Silicon Photonics is a technology that uses silicon to guide and manipulate light, leveraging the material's properties to process and transmit data using photons instead of electrons. This approach enables faster, more energy-efficient communication, promising to revolutionize data transfer within computer chips and other devices by overcoming the limitations of traditional electronics.
"The unique strengths of photonic qubits, combined with direct leverage of high-volume semiconductor manufacturing, provide a fast path through scaling barriers," the company's leadership noted, highlighting their departure from traditional quantum computing approaches that rely on complex cryogenic systems resembling industrial chandeliers.
NVIDIA's Strategic Quantum Bet Signals Industry Convergence
The participation of NVentures, NVIDIA's venture capital arm, alongside a broader collaboration agreement, reveals Silicon Valley's recognition that quantum computing will not replace classical systems but enhance them. The partnership encompasses quantum algorithms, software development, and critically, GPU-QPU integration—positioning quantum processors as specialized accelerators within hybrid computing architectures.
This convergence mirrors earlier transformations in high-performance computing, where graphics processors evolved from gaming peripherals to artificial intelligence workhorses. Industry observers suggest that quantum processors may follow a similar trajectory, initially serving narrow but valuable applications before expanding into broader computational roles.
Australia's Strategic Quantum Infrastructure Investment
The Australian government's commitment of approximately A$940 million toward PsiQuantum's Brisbane facility represents one of the largest sovereign investments in quantum technology infrastructure. This "Future Made in Australia" initiative positions the nation to host the world's first commercial-scale quantum computing center, with implications extending beyond technological capabilities to national competitiveness and strategic autonomy.
The Brisbane site selection reflects quantum computing's unique infrastructure requirements: stable power grids, minimal seismic activity, and proximity to fiber optic networks capable of supporting quantum communications. These facilities will feature modular cooling systems resembling modern data centers rather than the exotic cryogenic equipment typically associated with quantum computers.
The Photonic Advantage in Million-Qubit Architecture
PsiQuantum's fundamental thesis centers on photonic qubits' natural advantages for large-scale systems. Unlike electron-based qubits that require extreme isolation and cooling, photonic qubits operate at room temperature and communicate naturally through fiber optic networks. This approach enables distributed quantum computing architectures where individual processing units can be networked across multiple cabinets or even buildings.
The company has demonstrated high-fidelity quantum networking between distant cabinets using standard telecommunications fiber—a critical capability for utility-scale systems requiring millions of qubits. This networking capability also positions PsiQuantum's technology for integration into existing data center infrastructure, potentially accelerating commercial adoption.
Market Dynamics and Competitive Landscape
The quantum computing sector has experienced unprecedented capital inflows, with Quantinuum recently raising $600 million at a $10 billion valuation and multiple companies announcing fault-tolerant roadmaps. This capital concentration reflects investor recognition that quantum computing has transitioned from research curiosity to infrastructure development phase.
However, technical challenges remain formidable. Building fault-tolerant quantum computers requires not just functional qubits but comprehensive error correction, precise control systems, and software stacks capable of translating high-level problems into quantum operations. Success demands executing across multiple complex engineering domains simultaneously.
Financial analysts suggest the quantum computing market could reach hundreds of billions in annual revenue within the next decade, driven initially by specialized applications in drug discovery, materials science, and optimization problems that exceed classical computational limits.
Investment Implications and Strategic Positioning
PsiQuantum's approach represents a concentrated bet on photonic quantum computing's scalability advantages, with potential applications extending beyond pure quantum processing to next-generation AI infrastructure through optical networking capabilities. The company's manufacturing partnership with GlobalFoundries provides a credible path to production volumes, while government backing offers downside protection against technical setbacks.
Projections for the global quantum computing market size show a steep growth trajectory, with potential to reach hundreds of billions by 2035.
| Year | Projected Market Size (USD) | Source |
|---|---|---|
| 2024 | 1.42 Billion | Grand View Research |
| 2030 | 20.20 Billion | MarketsandMarkets |
| 2035 | 1.3 Trillion | IBM |
Investors may consider quantum computing exposure through complementary positions in semiconductor equipment manufacturers, advanced materials companies, and hybrid computing platforms. NVIDIA's growing quantum ecosystem presence suggests GPU-quantum integration will become standard, potentially creating value across multiple technology layers.
The sector's capital requirements and technical complexity favor companies with substantial funding, manufacturing partnerships, and clear paths to utility-scale deployment. PsiQuantum's combination of photonic technology, foundry partnerships, and sovereign backing positions the company among potential winners in quantum computing's industrialization phase.
Technical Milestones and Commercial Readiness
PsiQuantum's roadmap targets operational prototype systems by 2026, with Brisbane facilities potentially operational by late 2027 and Chicago deployments following in 2028. These timelines align with the company's claims of having mature manufacturing processes, cooling systems, and networking capabilities already demonstrated at smaller scales.
The company's success will ultimately depend on scaling Barium Titanate production, achieving acceptable yields across thousands of integrated photonic chips, and demonstrating error correction at unprecedented scales. Early applications are likely to focus on quantum chemistry and optimization problems where quantum advantages can justify premium pricing.
As quantum computing transitions from scientific achievement to commercial infrastructure, companies like PsiQuantum face the challenge of delivering on ambitious technical promises while navigating complex manufacturing, regulatory, and market adoption challenges. The next two years will prove decisive in determining whether today's quantum investments represent prescient positioning or premature enthusiasm.
Disclaimer: Quantum computing investments carry significant technical and market risks. Past performance in emerging technologies does not guarantee future results. Investors should consult qualified advisors before making investment decisions in this rapidly evolving sector.