PsiQuantum Raises $1 Billion In Series E Funding Round

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PsiQuantum, a Palo Alto-based quantum computing company, secured $1 billion in its Series E funding round. This round, one of the largest in quantum computing history, increased the company’s valuation to $7 billion, a significant jump from its $6 billion pre-money valuation reported in March 2025. The funding round was led by prominent investment firms BlackRock, Temasek, and Baillie Gifford, with new investors including NVentures, Macquarie Capital, Ribbit Capital, Adage Capital Management, Qatar Investment Authority, Type One Ventures, Counterpoint Global (Morgan Stanley), and S Ventures (SentinelOne). Existing investors such as Blackbird Ventures, Third Point Ventures, and T. Rowe Price also participated.

Strategic Use of Funds

The $1 billion will be allocated to several key initiatives:

• Infrastructure Development: PsiQuantum plans to break ground on utility-scale quantum computing facilities in Brisbane, Australia, and Chicago, Illinois. These sites aim to house fault-tolerant quantum computers capable of scaling to millions of qubits.
• Prototype Deployment: The funds will support the deployment of large-scale prototype systems to validate PsiQuantum’s systems architecture and integration processes.
• Technological Advancements: Investments will enhance the performance of PsiQuantum’s quantum photonic chips, particularly through the integration of Barium Titanate (BTO), a high-performance electro-optic material critical for scaling optical quantum computing.
• Manufacturing Scale-Up: The funding will enable increased production of BTO-enabled components at PsiQuantum’s California facilities and quantum chips at GlobalFoundries’ New York fab.

Collaboration with NVIDIA

A significant aspect of this funding round is PsiQuantum’s announced collaboration with NVIDIA. This partnership aims to accelerate quantum computing development by leveraging NVIDIA’s expertise in high-performance computing and AI. The collaboration could enhance PsiQuantum’s ability to optimize quantum algorithms and integrate its photonic systems with advanced computational frameworks, positioning the company to address complex challenges in fields like cybersecurity, drug discovery, and materials research.

Competitive Landscape

PsiQuantum’s photonic approach, which uses photons as qubits and leverages existing semiconductor manufacturing infrastructure, sets it apart from competitors like IBM (superconducting qubits) and IonQ (trapped-ion qubits). The company’s focus on fault-tolerant systems requiring at least one million qubits aligns with its long-term goal of delivering commercially viable quantum computers by 2029 or earlier. The substantial funding and high valuation reflect investor confidence in this approach, despite skepticism from some industry leaders, such as NVIDIA’s CEO Jensen Huang, who previously suggested quantum computers might be decades away from practical use before retracting those comments.

Investor Confidence and Industry Impact

The participation of high-profile investors like BlackRock and NVIDIA’s venture arm signals strong belief in PsiQuantum’s potential to lead the quantum computing race. The company’s partnerships with governments in the U.S., Australia, and the UK, as well as its collaboration with GlobalFoundries, further bolster its position. However, challenges remain, including scaling quantum systems, ensuring qubit reliability, and competing for talent in a rapidly evolving field.

Founded in 2016 by Jeremy O’Brien, Terry Rudolph, Peter Shadbolt, and Mark Thompson, PsiQuantum is a Palo Alto-based quantum computing company focused on developing fault-tolerant, utility-scale quantum computers using photonic qubits. Unlike competitors relying on superconducting circuits or trapped ions, PsiQuantum’s approach leverages photons (particles of light) as qubits, manufactured using standard semiconductor processes at GlobalFoundries’ facility in New York. This method aims to capitalize on decades of semiconductor industry advancements to achieve scalability, targeting systems with over one million qubits to enable error-corrected, commercially viable quantum computing.

Details of the Series E Funding Round

In September 2025, PsiQuantum announced a $1 billion Series E funding round, valuing the company at $7 billion post-money. This follows a reported $750 million raise in March 2025 at a $6 billion pre-money valuation, indicating rapid growth in investor confidence. The round was led by:

• BlackRock: A global investment management firm that also led PsiQuantum’s $450 million Series D round in 2021 and the $750 million raise in March 2025.
• Temasek: A Singapore-based investment company with a focus on technology and innovation.
• Baillie Gifford: A long-term investor in PsiQuantum, recognizing its potential to create a trillion-dollar quantum computing industry.

New investors included:

• NVentures (NVIDIA’s venture capital arm): Marking NVIDIA’s first investment in a company building physical quantum computing hardware.
• Macquarie Capital, Ribbit Capital, Adage Capital Management, Qatar Investment Authority, Type One Ventures, Counterpoint Global (Morgan Stanley), and S Ventures (SentinelOne): These additions broaden PsiQuantum’s investor base, bringing diverse expertise in technology, finance, and venture capital.

Existing investors like Blackbird Ventures, Third Point Ventures, and T. Rowe Price also participated, reinforcing their commitment to PsiQuantum’s vision. The company has now raised approximately $2.128 billion across 14 funding rounds since its inception, with significant contributions from both private and public sectors.

Strategic Objectives and Use of Funds

The $1 billion will fuel PsiQuantum’s ambitious roadmap to deliver the world’s first commercially useful quantum computer. Key objectives include:

Utility-Scale Quantum Computing Sites:

• Brisbane, Australia: Supported by a $617 million (AUD $940 million) investment from the Australian and Queensland governments in 2024, PsiQuantum is building a quantum computing facility near Brisbane Airport. A partnership with Linde Engineering will deliver a large-scale cryogenic plant to support the site, critical for maintaining the low temperatures required for quantum operations.
• Chicago, Illinois: In collaboration with the State of Illinois, Cook County, and the City of Chicago, PsiQuantum is developing a 300,000-square-foot facility within the Illinois Quantum and Microelectronics Park. This project is backed by over $500 million in public funding and aims to anchor a hub for quantum and microelectronics innovation.

Prototype Systems: The funding will support the deployment of large-scale test systems to validate PsiQuantum’s systems architecture, including integration of photonic chips, cooling systems, and control electronics. These prototypes are crucial for proving the scalability and reliability of the company’s technology.

Advancements in Photonic Technology:

• PsiQuantum has integrated Barium Titanate (BTO) into its manufacturing process, a high-performance electro-optic material that enables ultra-high-speed optical switches. These switches are essential for managing photon movement in quantum circuits, addressing a key bottleneck in scaling photonic quantum computing.
• The company manufactures 300mm BTO wafers in California, which are integrated with quantum chips produced at GlobalFoundries. The funding will scale up BTO production to meet the demands of million-qubit systems.

Algorithm and Application Development: PsiQuantum is working with partners in healthcare, materials, electronics, finance, security, transportation, and energy to develop quantum algorithms and use cases. For example, a collaboration with Stanford University has produced a framework for simulating chemical reaction dynamics on fault-tolerant quantum computers, with potential applications in drug discovery and materials science.

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Collaboration with NVIDIA

The announcement of a collaboration with NVIDIA is a pivotal development. NVIDIA, a leader in AI and high-performance computing, brings expertise in computational frameworks that can enhance PsiQuantum’s quantum computing development. This partnership may involve integrating NVIDIA’s GPU technology with PsiQuantum’s photonic systems to optimize quantum algorithms or improve system control and networking. The involvement of NVentures in the funding round underscores NVIDIA’s strategic shift toward quantum computing, particularly after CEO Jensen Huang’s earlier skepticism about the technology’s near-term viability. This collaboration could position PsiQuantum to address computational bottlenecks in both quantum and AI applications, as BTO-enabled optical switches have potential uses in next-generation AI supercomputers.

Competitive Positioning

PsiQuantum operates in a highly competitive quantum computing landscape, with key players including:

• IBM: Focuses on superconducting qubits, with a roadmap to scale to 100,000 qubits by 2030.
• IonQ: A publicly traded company using trapped-ion qubits, valued comparably to PsiQuantum but with a different technological approach.
• Google: Pursuing superconducting qubits, with a goal of delivering useful quantum applications within five years.
• Xanadu: A competitor in photonic quantum computing, though less capitalized than PsiQuantum.

PsiQuantum’s photonic approach offers several advantages:

• Scalability: Photonic qubits leverage existing semiconductor manufacturing infrastructure, avoiding the need for exotic materials or custom fabrication facilities.
• Error Correction: Photons are less susceptible to environmental noise (e.g., heat or electromagnetic interference), potentially simplifying error correction compared to other qubit types.
• Integration: The use of standard telecom optical fiber for chip connectivity reduces costs and improves system integration.

However, challenges include:

• Qubit Reliability: Photonic qubits are sensitive to environmental changes, requiring precise control and calibration.
• Scaling Complexity: Achieving fault-tolerant systems with millions of qubits remains a significant technical hurdle.
• Talent Competition: PsiQuantum’s substantial funding enables it to attract top talent, but it faces competition from tech giants like Google, Microsoft, and Amazon, as well as other quantum startups.

Financial and Market Context

PsiQuantum’s $7 billion valuation reflects its leadership in the quantum computing race, driven by its unique technological approach and strong investor backing. The company’s funding history includes:

• Seed Round (2016): $1.5 million.
• Series D (2021): $450 million at a $3.15 billion valuation.
• Australian Government Partnership (2024): $617 million (AUD $940 million) for the Brisbane facility.
• Series E (March 2025): $750 million at a $6 billion pre-money valuation.
• Series E-II (May 2025): $22 million, led by Redpoint Ventures.

The quantum computing market is projected to grow significantly, with estimates suggesting a market size of $6.8 billion by 2035 for photonic quantum computing alone. PsiQuantum’s ability to secure over $2 billion in total funding positions it to capture a significant share of this market, particularly if it achieves its goal of delivering a fault-tolerant quantum computer by 2029.

Risks and Opportunities

Opportunities:

• Market Leadership: PsiQuantum’s partnerships with governments and industry leaders like GlobalFoundries and NVIDIA position it as a frontrunner in quantum computing.
• Commercial Applications: Success in scaling to million-qubit systems could unlock applications in drug discovery, materials science, cybersecurity, and optimization problems, creating significant economic value.
• Public Sector Support: Continued government backing in the U.S., Australia, and the UK provides financial and infrastructural support, reducing reliance on private capital.

Risks:

• Technological Uncertainty: Quantum computing remains in its early stages, and unforeseen technical challenges could delay PsiQuantum’s timeline.
• Competition: Rivals with different qubit technologies may achieve breakthroughs, potentially outpacing PsiQuantum’s photonic approach.
• Economic and Regulatory Factors: Economic uncertainties or regulatory hurdles in quantum technology could impact funding and market access.

PsiQuantum’s $1 billion Series E funding round, announced in September 2025, marks a significant milestone in its mission to build the world’s first commercially useful quantum computer. With a $7 billion valuation, the company is well-positioned to advance its photonic-based approach, leveraging partnerships with NVIDIA, GlobalFoundries, and governments in the U.S. and Australia. The funding will support critical infrastructure projects in Brisbane and Chicago, prototype development, and technological advancements in photonic chips. While challenges remain in scaling quantum systems and competing in a rapidly evolving field, PsiQuantum’s substantial capital, strategic collaborations, and innovative approach make it a leading contender in the global race for quantum advantage.

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