Diraq, PsiQuantum receive $196m US grant commitments in exchange for equity
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The news: Quantum computing companies Diraq and PsiQuantum have signed letters of intent with the US Department of Commerce to receive funding through the CHIPS Research and Development Office, in exchange for a minority, non-controlling equity stake in both businesses.
The numbers: Diraq has received a commitment for USD38 million ($53.3 million) in funding while PsiQuantum has received a USD100 million commitment.
The funding commitments are part of a broader USD2.013 billion funding package committed under the US CHIPS and Science Act that includes a total of seven letters of intent.
It also includes USD1 billion for IBM to establish a new quantum manufacturing subsidiary focused on quantum-grade superconducting wafers and USD375 million for GlobalFoundries to establish a quantum manufacturing facility to support multiple technologies potentially used in large-scale quantum computers.
The context: Spun out of the University of New South Wales and Silicon Quantum Computing in 2022, Diraq will use the funding to accelerate the company’s plan for an end-to-end quantum supply chain in America while also supporting the development and scaling of new technologies.
PsiQuantum, which has previously committed to building its first commercial quantum computer in Queensland by the end of 2027, will use the funding to “address critical technology and manufacturing bottlenecks for scaling of fault-tolerant trapped-ion-based quantum computers”, according to the US National Institute of Standards and Technology (NIST).
Diraq has received a $20 million investment from the Australian federal government’s National Reconstruction Fund while PsiQuantum has secured $940 million in debt funding from the federal and state governments.
The funding for IBM and GlobalFoundries is designed to “provide incentives” for developing American manufacturing capacity for the quantum sector.
The other companies that received letters of intent are Atom Computing, D-Wave, Infleqtion, Quantinuum and Rigetti.
According to NIST, “the Department will receive a minority, non-controlling equity stake in each company as a condition for receiving the funds to enhance the return for the US taxpayer”.
A Diraq spokesperson said the companies would receive grants with the option for the US government to take a minority equity stake a condition of the funding.
What they said: “The US government has played an important role for over 25 years in funding silicon quantum research through entities such as the U.S. Army Research Office and more recently DARPA. The foundational advancements that came from this work underpin Diraq’s technology today,” Diraq founder and CEO Andrew Dzurak said.
Secretary of Commerce Howard Lutnick said: “With today’s CHIPS Research and Development investments in quantum computing, the Trump administration is leading the world into a new era of American innovation”.
PsiQuantum interim CEO Victor Peng said: “Thanks to bold action from Washington, our company will continue to invest in manufacturing these cutting-edge components right here in the United States.”
The sources: Diraq media release, NIST media release, PsiQuantum media release
