Temasek-backed PsiQuantum secures $1b series E, valued at $7b

PsiQuantum, a quantum computing company based in Palo Alto, has raised US$1 billion in a series E round led by BlackRock, Temasek, and Baillie Gifford, bringing its valuation to US$7 billion.

The new capital will be used to develop large-scale, fault-tolerant quantum computers and establish computing sites in Brisbane and Chicago.

New investors include Macquarie Capital, Ribbit Capital, NVentures (Nvidia’s venture arm), Adage Capital Management, Qatar Investment Authority, Type One Ventures, Counterpoint Global, 1789 Capital, and S Ventures.

PsiQuantum also announced a collaboration with Nvidia on quantum algorithms, software, and GPU integration.

The company manufactures silicon photonic quantum chips at GlobalFoundries’ New York facility and produces electro-optic materials at its California site.

It has also developed cooling and networking systems for quantum machines, and demonstrated quantum networking using standard telecom fiber.

🔗 Source: PsiQuantum

🧠 Food for thought

Implications, context, and why it matters.

Quantum computing requires unprecedented funding scale as industry approaches commercial viability

PsiQuantum’s $1 billion Series E round reflects the massive capital requirements for building utility-scale quantum systems, with the company now valued at $7 billion despite being founded just eight years ago in 20161.
This funding level aligns with broader industry investment patterns, where global public sector investment in quantum technology is expected to reach $40-50 billion over the next decade2.
China leads public investment with $15 billion committed, followed by the EU with over $10 billion, while the US has balanced public and private investments of around $5 billion each2.
The quantum computing market is projected to grow rapidly from $1.16 billion in 2024 to $12.62 billion by 2032, indicating the industry is approaching a critical inflection point where substantial capital deployment becomes essential3.
PsiQuantum’s total funding now exceeds $1.3 billion, positioning it among the most well-funded quantum companies as the race intensifies to build fault-tolerant, million-qubit systems3.

Photonic quantum computing leverages semiconductor manufacturing advantages

PsiQuantum’s approach differs from competitors by using photonic qubits manufactured at GlobalFoundries’ Fab 8 in New York, leveraging existing high-volume semiconductor infrastructure rather than requiring specialized quantum fabrication facilities1.
The company’s integration of Barium Titanate (BTO) into standard 300mm wafer manufacturing represents a breakthrough in optical switch technology that could have applications beyond quantum computing1.
This manufacturing strategy contrasts with approaches like IBM’s 433-qubit superconducting processor, which requires specialized cryogenic systems and custom fabrication processes4.
PsiQuantum’s photonic approach enables networking between distant quantum computing cabinets using standard telecom fiber, addressing scalability challenges that affect other quantum computing architectures1.