California-based start-up PsiQuantum is raising at least $750 million in a major funding round, valuing the quantum computing firm at $6 billion (pre-money). The news was first reported by Reuters, citing people familiar with the matter. Asset management company Blackrock (BLK) is reportedly leading the ongoing funding round. PsiQuantum plans to use the funds to support its research and development efforts in manufacturing fully scalable quantum computing chips.
Quantum computing is considered the next big thing, following the global surge of artificial intelligence (AI) in 2023 with the launch of OpenAI’s ChatGPT. Tech companies, both large and small, are racing to design an error-free quantum computer that can exceed the capabilities of traditional computers. Notably, the idea of quantum computers has been around for decades, yet no company has launched a fully operational commercial quantum computer to date. Experts believe that the successful launch of quantum computers will enable companies to develop new materials for batteries and drugs.
What is Different About PsiQuantum?
While the majority of quantum computing firms are exploring the usage of exotic materials to develop their systems, PsiQuantum is leveraging existing photonics technology from the semiconductor industry to manufacture its quantum computers. The startup’s proprietary Omega chipset is built on this very premise.
PsiQuantum has struck a strategic alliance with GlobalFoundries (GFS) to design and develop its quantum computing chips at the latter’s fabrication plant in New York. The company is testing the use of fiber-optic cables, commonly used in internet communications, to manufacture its chips.
PsiQuantum has stated that it hopes to have a functional quantum machine by 2029 or sooner. The company is also working with the governments of the U.S. and Australia to build two quantum computers in the future, each computer expected to be the size of a data center, one in Chicago and the other in Brisbane.
Which Are the Best Quantum Computing Stocks Today?
Interestingly, major U.S. companies, including Google parent Alphabet (GOOGL), Microsoft (MSFT), and Amazon (AMZN) have introduced quantum computing chips. At the same time, chipmaker Nvidia (NVDA) is planning to establish a quantum computing research lab in Boston, in collaboration with scientists from Harvard University and the Massachusetts Institute of Technology (MIT).
We used the TipRanks Stock Comparison Tool for Best Quantum Computing Stocks to understand which stock is most favored by analysts. Investors can consider investing in one of these stocks after thorough research.
Currently, of the five stocks that score Wall Street’s Strong Buy consensus rating, Rigetti Computing (RGTI) stock offers a higher upside potential compared to the rest.
Questions or Comments about the article? Write to editor@tipranks.com