Quantum computing startup PsiQuantum signs $125 million DARPA deal

Quantum computing startup PsiQuantum just secured a 125 million dollar deal with the Defense Advanced Research Projects Agency. This marks the company's largest government award to date and supports the Quantum Benchmarking Initiative. The federal agency intends to use these funds to determine if an industrially useful quantum computer is achievable by 2033.

The investment will directly fund hardware and software testing for the company. Victor Peng, the current CEO, stated that this rigorous vetting process helps the industry separate practical results from speculative hype. PsiQuantum aims to have its first commercial-scale machine ready for deployment by 2030.

Based in San Francisco, the firm uses photonics to drive its technology. Their chips are manufactured through a partnership with GlobalFoundries. The company previously raised 1 billion dollars in a funding round led by major financial institutions like BlackRock, Temasek, and Baillie Gifford. NVIDIA's venture arm also participated in that raise.

This new deal extends a growing relationship between the startup and the federal government. The Commerce Department recently announced plans to take minority equity stakes in nine quantum firms as part of a 2 billion dollar effort under the CHIPS Act. PsiQuantum is slated to receive 100 million dollars through that initiative, though the agreements remain in the finalization stage.

Leadership at the company has seen changes recently. Victor Peng, a former president at AMD, transitioned from interim to permanent CEO this July. The board also added Intel executive Lip-Bu Tan earlier this year. These moves reflect the company's effort to scale its internal operations as it moves toward its 2030 production goal.