Quantum startup PsiQuantum to raise $750 million in BlackRock-led funding round

Quantum computing startup PsiQuantum is raising at least $750 million in a new funding round that could value the company at $6 billion pre-money, Reuters reported, citing two people familiar with the matter. One of them said BlackRock is leading the round, which is still underway.

The funding comes as big players like Google, Microsoft, and Amazon ramp up efforts and roll out new quantum chips. Nvidia recently announced plans for a quantum computing research center in Boston.

“Quantum computing startup PsiQuantum is raising at least $750 million at a $6 billion pre-money valuation, according to two people familiar with the matter. BlackRock is leading the fundraising effort, which has not yet been completed, one of the people said,” Reuters reported.

Quantum computing promises to tackle problems beyond the reach of traditional computers. Unlike regular processors that use bits toggling between zero and one, quantum chips operate with qubits, which can exist in both states at the same time. This fundamental difference could open the door to breakthroughs in materials science, cryptography, and complex simulations.

While many quantum startups are experimenting with exotic new materials, PsiQuantum is taking a different route—working with the semiconductor industry’s tried-and-true processes. The company is using photonics-based chipmaking, the same technology behind fiber-optic communication, and producing its chips at a GlobalFoundries facility in New York. The long-term goal? Millions of quantum chips.

But building quantum machines at that scale doesn’t come cheap. Manufacturing quantum processors at volume requires serious capital, one of the sources noted.

Quantum computing has become a hot race among both startups and tech giants. The tech promises to tackle problems far beyond the reach of today’s supercomputers—like modeling atomic-level interactions for drug development or creating new types of batteries.

PsiQuantum is also making moves on the public sector front. The company is partnering with the U.S. and Australian governments to build two quantum computers: one in Brisbane and another in Chicago.

Quantum machines have been in development for decades, but they’ve struggled with error rates that make them unreliable for practical use. That’s starting to change. Companies are making progress on improving chip quality and correcting errors. PsiQuantum says it’s on track to deliver a useful quantum computer by 2029—or sooner. Google, for its part, thinks quantum applications could be ready within five years.