Prime Highlights:
PsiQuantum is raising at least $750 million at a pre-money valuation of $6 billion, with BlackRock leading the effort.
The company aims to produce millions of quantum chips, a complex and costly endeavor requiring significant funding.
Key Background:
PsiQuantum, a leading quantum computing startup, is in the process of raising at least $750 million at a pre-money valuation of $6 billion, according to sources familiar with the matter. BlackRock is spearheading the fundraising effort, which is still underway.
Unlike many quantum computing companies that rely on exotic materials, PsiQuantum is taking a different approach by leveraging existing semiconductor manufacturing technologies. The company utilizes photonics technology—similar to that used in fiber-optic communication systems—to produce quantum chips. These chips are being manufactured in collaboration with GlobalFoundries at their New York-based factory, with plans to ramp up production to millions of quantum processors.
Scaling up the production of these quantum chips presents both financial and technical challenges, which is driving PsiQuantum’s current funding round. The quantum computing sector is highly competitive, with both startups and large technology firms investing heavily in the field. Quantum computers have the potential to solve complex problems that traditional computers cannot, such as simulating atomic and molecular interactions for advancements in materials science, battery technology, and drug development.
Notable companies, including Alphabet’s Google, Microsoft, and Amazon, have also entered the quantum computing race, with each unveiling their own quantum chip designs in recent months. In addition, Nvidia recently announced plans to establish a quantum computing research center in Boston.
PsiQuantum is collaborating with the Australian and U.S. governments to build quantum computers in Brisbane, Australia, and Chicago, with a goal of producing a functional machine by 2029 or sooner. While quantum computing has made significant strides, the technology is still overcoming challenges, particularly in error correction. However, PsiQuantum and others in the field remain optimistic about the potential for quantum machines to revolutionize industries in the coming decade.
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