DARPA Backs PsiQuantum With $179M
Synopsis
The agreement advances the Australian company's efforts to build a commercial quantum computer this decade.
PsiQuantum has secured a US$125 million contract with the US Defense Advanced Research Projects Agency (DARPA) to continue being part of a federal project aimed at assessing if new technologies based on quantum principles can become commercially viable.
\It is the largest government contract in the company's history and places the company in the final tier of companies taking part in DARPA's Quantum Benchmarking Initiative (QBI).
The firm is located in California and has plans to build another quantum computer, in utility scale, in Brisbane, backed by the Queensland and Australian governments; it is one of only two firms to reach the Stage C of the benchmarking program launched by DARPA.
This latest contract builds on the earlier contract of US$31.8 million that was awarded to PsiQuantum to conduct research.
Independent Reviews Continue
According to the contract, DARPA will carry out engineering reviews, design reviews, technical demonstrations, and engineering performance evaluations.
The firm will carry out the activity at its premises located in Milpitas, California and Chicago, Illinois, which host core elements of the quantum computing platform development process.
The quantum computing systems by PsiQuantum use silicon photonics technology, which uses light particles to store quantum information and is capable of being manufactured in semiconductors production lines. The firm does not have any specialized fabrication facilities but manufactures the chips in collaboration with GlobalFoundries.
Growing Government Investment
The deal comes amid governments' launch of investments in quantum technologies. According to McKinsey & Company estimations, there have been $42 billion worth of investments announced into quantum technologies worldwide, with the most massive one being announced by China, followed by the European Union, Germany, and the United Kingdom.
PsiQuantum raised $1 billion in 2025, making the company's valuation of $7 billion. Among the participants of this fundraising round are BlackRock, Temasek, Baillie Gifford, NVentures and Macquarie Capital and Ribbit Capital.
With the DARPA contract, the company's government funding projects in Australia and the U.S. will amount to 12 in total, including construction of a fault-tolerant quantum computer in Brisbane.
Source: Smart Company
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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