PsiQuantum Raises Record $1 Billion for Million-Qubit Quantum Computers at $7B Valuation

PsiQuantum announced Wednesday it has secured $1 billion in Series E funding, the largest quantum computing investment on record, to build the world's first commercially useful fault-tolerant quantum computers. The round, led by BlackRock with participation from Nvidia's NVentures, Temasek, and Baillie Gifford, values the Palo Alto-based company at $7 billion—more than doubling its valuation since its $450 million Series D in 2021.

The massive investment underscores growing enterprise confidence in quantum computing's potential to solve problems beyond the reach of classical computers and artificial intelligence. PsiQuantum plans to use the funding to break ground on utility-scale quantum computing facilities in Brisbane, Australia, and Chicago, with the first systems targeted for completion by late 2027.

Million-Qubit Scale Targets Commercial Viability

Unlike competitors who are gradually scaling up qubit counts, PsiQuantum aims to build million-qubit, fault-tolerant quantum systems directly—the scale the company believes necessary for commercial utility. CEO Jeremy O'Brien emphasized that reaching million-qubit scale will "unlock the promise of quantum computing" by enabling error correction essential for reliable performance.

"We are at the dawn of an adjacent computing platform—rooted in quantum mechanics—that will allow us to simulate the physical world with transformative accuracy," said Tony Kim, Head of the Fundamental Equities Technology Group at BlackRock. The investment represents BlackRock's confidence that quantum computing will complement rather than replace AI, addressing problems in drug discovery, financial modeling, and materials science that remain intractable for classical systems.

The funding brings heavyweight new investors including Qatar Investment Authority, Morgan Stanley's Counterpoint Global, Macquarie Capital, and Ribbit Capital, alongside existing backers Blackbird and T. Rowe Price. The investor lineup reflects quantum computing's evolution from research curiosity to enterprise-ready technology with trillion-dollar market potential.

Photonic Approach Leverages Semiconductor Manufacturing

PsiQuantum's competitive advantage lies in its photonic approach, which uses light particles (photons) rather than electrons to create qubits. This methodology allows the company to leverage existing semiconductor manufacturing infrastructure, working with GlobalFoundries to produce quantum chips using standard 300mm wafer processes.

The company has integrated Barium Titanate (BTO), one of the world's highest-performing electro-optic materials, into its manufacturing flow to create ultra-high-performance optical switches—the missing component for scaling optical quantum computing. The BTO-enabled switches also have potential applications in next-generation AI supercomputers, where low-power, high-speed optical networking becomes increasingly critical for handling massive AI workloads.

PsiQuantum's photonic approach eliminates the need for traditional "chandelier"-style cryostats used by competitors, instead employing modular high-density cooling solutions similar to datacenter racks that can cool hundreds of quantum chips in a single cabinet. The company has also demonstrated high-fidelity quantum networking between distant cabinets using standard telecom fiber—essential for utility-scale quantum computing.

Strategic Nvidia Partnership Bridges Quantum and AI

The funding announcement coincided with a strategic partnership between PsiQuantum and Nvidia covering quantum algorithm development, software integration, and GPU-QPU (quantum processing unit) integration. This collaboration positions both companies at the intersection of quantum computing and AI, where hybrid systems may deliver capabilities neither technology can achieve alone.

"This goes beyond what is possible with AI," said Luke Ward, private companies investment manager at Baillie Gifford, which has backed PsiQuantum for over six years. The partnership reflects industry recognition that quantum and classical computing will work together rather than compete, with quantum systems handling specific computational challenges while AI manages broader pattern recognition and optimization tasks.

Nvidia's participation through its venture arm NVentures signals the chip giant's belief that quantum computing represents a complementary computing paradigm rather than a threat to its AI dominance. The collaboration could accelerate enterprise adoption by ensuring quantum systems integrate seamlessly with existing AI infrastructure.

Enterprise Market Implications

PsiQuantum's funding success comes amid a surge in quantum computing investment, with Quantinuum recently valued at $10 billion and IQM Quantum Computers raising $320 million at a $1 billion valuation. The rapid valuation increases reflect enterprise urgency to gain quantum advantages in drug discovery, financial risk modeling, cryptography, and supply chain optimization.

For enterprise software buyers, PsiQuantum's timeline suggests quantum computing will transition from research to commercial deployment within this decade. The company's utility-scale approach—building million-qubit systems rather than incremental improvements—could leapfrog competitors and deliver quantum advantages sooner than previously expected.

The Brisbane facility, supported by the Australian government's quantum commercialization strategy, positions PsiQuantum to serve Asia-Pacific enterprises while the Chicago site targets North American markets. Both facilities will deploy large-scale prototype systems to validate architecture and integration before full commercial deployment.

Investment Landscape Validates Quantum Computing

The record funding round validates quantum computing's progression from experimental technology to enterprise infrastructure investment. With total funding approaching $2 billion, PsiQuantum joins an elite group of deep-tech companies commanding billion-dollar valuations based on breakthrough potential rather than current revenue.

Industry observers note the investor quality—including sovereign wealth funds, institutional asset managers, and strategic corporate investors—indicates quantum computing has achieved mainstream investment acceptance. The participation of BlackRock, which manages over $10 trillion in assets, particularly signals institutional confidence in quantum computing's commercial viability.

For IT decision makers, PsiQuantum's funding success and 2027-2028 timeline suggest quantum computing will move from research labs to enterprise procurement discussions within this planning cycle. Organizations should begin evaluating quantum readiness and identifying use cases where quantum advantages could provide competitive differentiation.