PsiQuantum may still be a private company, but it is already seen as one of the leading pure-quantum plays in the sector. Its use of silicon photonics allows greater scalability, making it a strong contender in the race for quantum systems. The company has now raised $1 billion in new funding at a valuation of $7 billion. The round was led by BlackRock (BLK), Temasek, and Baillie Gifford, with new investors including Nvidia (NVDA), Macquarie Capital, and Ribbit Capital. PsiQuantum says the funds will be used to build large test systems and begin work on full-scale sites in Brisbane, Australia, and Chicago, Illinois.
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The start-up was founded in the United Kingdom and is now based in Palo Alto, California. Its focus is on photonic chips that use light to process data. This approach is built on standard semiconductor plants and avoids the very low temperature setups required by rivals such as Alphabet (GOOG) and International Business Machines (IBM). Supporters argue that this design could give PsiQuantum a faster path to scale.
Race for Scale in Quantum Computing
PsiQuantum has set a target of building a one-million-qubit system by 2028. Currently, most machines can only reach hundreds of qubits, and experts note that error correction remains a key challenge. The company says it has met all of its technical goals so far and is now focused on integrating its design rather than creating new components.
Investor interest in quantum computing has been rising at the same pace. Recently, Quantinuum, backed by Honeywell (HON), raised $600 million at a $10 billion valuation. Finnish group IQM also raised $300 million. On the public markets, IonQ (IONQ), Rigetti Computing (RGTI), and D-Wave Quantum (QBTS) have seen their combined market value grow to about $22 billion, up from less than $5 billion late last year.
For Nvidia, the tie-up with PsiQuantum supports a plan to link graphics chips with new systems. Chief executive Jensen Huang has said that a fully developed quantum computer may still be years away. However, Nvidia continues to work with several start-ups to prepare for platforms that combine classical and quantum computing.
We used TipRanks’ Comparison Tool to line up some of the top quantum stocks and other tickers mentioned in this piece. It’s an easy way to see how they compare and get a sense of where the space might be headed.
