Funding

I’ll have what he’s having: US hands PsiQuantum $760 million for quantum computer in Chicago

- July 26, 2024 2 MIN READ
PsiQuantum IQMP, Chicago
An artist's impression of the PsiQuantum plant in Chicago
Australia may get the world’s first quantum computer by 2027, but within 12 months, PsiQuantum plans to build a second one in Chicago after scoring another massive government funding deal.

The California startup’s latest cash injection of US$500 million (A$760m) over 30 years, funded by the Illinois government, Cook County, and the City of Chicago will see a quantum computer build there in 2028.

That takes the total in government funding to $1.7 billion after PsiQuantum also landed funding worth $940 million (US$620m) in loans and equity from the Australian and Queensland governments to build its first quantum computer in Brisbane.

The California startup founded in Palo Alto in 2015 by expat Australian professors Jeremy O’Brien, Terry Rudolph, Mark Thompson and Dr Pete Shadbolt hopes to build the “world’s first useful quantum computer”. The startup has raised $700 million for its technology, which uses photons as a representation of qubits instead of electrons. Its backers include Australian VC Blackbird, which backed the quantum startup, now valued at A$5 billion during 2021’s $450 million Series D.

Sweetening the Chicago deal, the state government there is spending another US$500 million on the Illinois Quantum and Microelectronics Park (IQMP) in Chicago, including US$200m a cryogenic plant for the cooling needs for PsiQuantum and other potential users.

PsiQuantum will be the anchor tenant of the site with its Quantum Computer Operations Center spanning over 300,000 square feet.

PsiQuantum CEO and cofounder Prof. Jeremy O’Brien said infrastructure  like the IQMP was needed to develop quantum technology and scale from hype to reality.

“Governor Pritzker and Illinois understand what’s needed to unlock quantum computing’s potential, and we’re thrilled to partner with them and anchor the state’s quantum strategy with the first utility-scale quantum computer in the United States at this iconic location,” he said.

Illinois governor Jay Pritzker has also struck a deal with DARPA which brings US$280m to the IQMP project.

“I’m grateful that PsiQuantum will be our anchor tenant as we launch this exciting collaboration to create the jobs of the future, and PsiQuantum choosing Chicago cements our status as a global hub for quantum computing,” he said.

PsiQuantum remains headquartered in Palo Alto, with research and development sites in San Jose, CA; Malta, NY; and Daresbury, UK.

The company has longstanding partnerships with various U.S. government agencies, including DARPA through its US2QC program, the Air Force Research Laboratories (AFRL), and the US Department of Energy.

The company said its plans in Australia “remain unchanged” and earlier this month it announced new partnerships with five Queensland universities to develop educational programs to meet the skills requirements for computing and other advanced technology industries. They will include quantum applications engineers, mechanical, optical, and electrical engineers; software developers, and technical lab staff.

In the meantime, concerns around the legal bills and other costs involved in the $940 financial package, which is split equally between the state and federal governments continue, including $28 million earmarked for administration over the 10-year deal and an audit office investigation into an 11x blowout in legal costs to $3.3m.

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