Quantum computing startup PsiQuantum has raised $1 billion in a Series E funding round at a valuation of $7 billion, marking one of the largest financing hauls ever in the quantum sector.
The Palo Alto-based company also announced a strategic collaboration with Nvidia to accelerate development of its silicon-photonics quantum machines.
The fundraising was led by BlackRock, Temasek, and Baillie Gifford, with participation from NVentures (Nvidia’s venture capital arm), Macquarie Capital, and Ribbit Capital. PsiQuantum said the fresh capital will support its Brisbane, Australia, and Chicago, Illinois, sites while funding the rollout of large test systems to prove the company’s design.
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PsiQuantum is pursuing a photonic approach to quantum computing, manipulating particles of light on silicon chips. The company argues this method offers a clearer path to scaling, leveraging semiconductor manufacturing techniques and fiber-optic networking.
As part of its Nvidia partnership, PsiQuantum will integrate its systems with the chipmaker’s advanced processors. The collaboration aims to make Nvidia’s chips interoperable with quantum machines, while simultaneously advancing PsiQuantum’s light-based silicon-photonics chips.
The startup’s long-term ambition is nothing short of building the world’s first million-qubit, fault-tolerant quantum computer — a scale far beyond today’s experimental systems, which typically operate with hundreds of qubits and struggle with high error rates. To achieve this, PsiQuantum has also partnered with GlobalFoundries, which fabricates its chips at the company’s New York factory.
Contrast with Industry Peers
PsiQuantum’s $7 billion valuation positions it as one of the most valuable quantum startups globally. It also underscores the widening gulf between well-capitalized players and smaller rivals. For example, U.S.-based IonQ, which went public via SPAC in 2021, has a market capitalization hovering around $2 billion and raised significantly less than PsiQuantum in its early rounds. Rigetti Computing, another U.S. quantum hopeful, has struggled with both financing and execution, with a market cap under $200 million as of this year.
By contrast, PsiQuantum’s latest funding round rivals levels more commonly seen in AI hardware. Nvidia itself, whose data center sales hit $41.1 billion in its most recent quarter, is flush with cash and continues to dominate AI chip markets. Anthropic, one of the leaders in AI models, raised $4 billion from Amazon in 2023, but in quantum computing, a single $1 billion round is rare and signals how investors view the technology as strategically important despite its longer time horizons.
Government Stakes in Quantum
For governments and investors, quantum represents both an economic opportunity and a matter of national security. Quantum systems could eventually crack today’s encryption, model new materials, and revolutionize drug discovery. Unlike the gradual slowdown in conventional computing, quantum offers the promise of leaps in processing power.
Currently, governments are pouring billions into quantum research. In the United States, the 2018 National Quantum Initiative Act allocated over $1.2 billion in funding for quantum R&D, with additional billions committed through the Department of Energy and Department of Defense for quantum-secure communication and computing.
In China, state-led investments dwarf private rounds, with analysts estimating more than $10 billion committed to national quantum programs, including facilities in Hefei focused on quantum communication and computing. The country has already demonstrated leadership in quantum satellite communication and has sought to tie advances to strategic military and industrial applications.
The European Union has launched the Quantum Flagship Program, a €1 billion, 10-year initiative to boost the bloc’s competitiveness, funding university labs, startups, and collaborative projects across member states. Several European governments, including Germany and France, have also announced national programs worth billions more to accelerate industrial adoption of quantum technology.
This dual-track strategy — large state-backed initiatives alongside deep-pocketed private investors — highlights how quantum is being treated as both a commercial frontier and a geopolitical race. PsiQuantum’s $1 billion raise signals that private capital is willing to match some of the scale governments are already deploying, especially when tied to heavyweight partners like Nvidia.
By securing Nvidia’s backing, PsiQuantum is ensuring that its photonic design remains tethered to the world’s dominant chip ecosystem, potentially smoothing the path to commercialization.
With more than 30 investors and a newly confirmed $1 billion war chest, PsiQuantum is now among the best-funded deep-tech startups on record. Its success or failure could help determine whether quantum computing shifts from hype to practical reality within the next decade.