Quantum computing has emerged as one of the most promising frontiers in technology, with the potential to transform industries ranging from finance to healthcare. Among the leading companies in this space is PsiQuantum, a Silicon Valley-based start-up that is working to build the world’s first fault-tolerant quantum computer. As interest in quantum technologies grows, so does the spotlight on PsiQuantum’s valuation, funding history, and strategic trajectory. This article takes a closer look at the company’s valuation, its background, technology, leadership, and its place within the quantum computing industry.
What is PsiQuantum?
Founded in 2016, PsiQuantum is a quantum computing company headquartered in Palo Alto, California. The company was established with the mission of building a large-scale, fault-tolerant quantum computer that can be commercially viable and address some of the world’s most pressing computational challenges.
What makes PsiQuantum stand out is its approach to quantum hardware. While many quantum start-ups focus on superconducting qubits or trapped ions, PsiQuantum is developing a photonic quantum computer. This means it uses photons, particles of light – as qubits. This approach is seen as more scalable than some alternatives, with the potential to build a much larger system compared to today’s limited quantum processors.
PsiQuantum Valuation and Funding
PsiQuantum has attracted significant investment from venture capital firms and strategic partners, reflecting the growing global appetite for quantum technologies. The company’s valuation journey shows remarkable growth, starting at around $3.15 billion in July 2021 following a $450 million Series D funding round, making it one of the highest-valued quantum computing start-ups worldwide.
The company’s funding trajectory accelerated dramatically in 2025. In March 2025, PsiQuantum raised $750 million in a Series E round, doubling its valuation to $6.75 billion. This was followed by an even larger Series F funding round in September 2025, where the company secured an additional $1 billion, pushing its valuation to $7 billion.
Over its funding history, PsiQuantum has raised more than $2.2 billion from a distinguished group of investors including BlackRock, Baillie Gifford, M12 (Microsoft’s venture fund), Playground Global, Temasek, and NVIDIA’s venture arm NVentures. The inclusion of NVIDIA’s venture division in the latest funding round particularly underscores the strategic importance of PsiQuantum’s photonic approach to quantum computing.
PsiQuantum has also secured significant government backing, including a collaboration with the U.S. Department of Energy to accelerate development of its large-scale photonic quantum computer. The partnership leverages infrastructure at the SLAC National Accelerator Laboratory, including advanced cryogenic and photonic facilities. Additionally, the company has expanded its operations with a significant presence in Brisbane, Australia, supported by substantial Australian government investment, demonstrating international recognition of its technology’s potential.
The funding has enabled PsiQuantum to expand its workforce, deepen research and development, and build crucial collaborations with semiconductor foundries. This manufacturing partnership approach is particularly important because scaling quantum hardware to millions of qubits requires leveraging established semiconductor fabrication processes – a key differentiator in PsiQuantum’s strategy compared to other quantum computing approaches.
Recent Updates on PsiQuantum
In addition to its funding milestones, PsiQuantum has announced a major collaboration with the U.S. Department of Energy to accelerate the path toward building the world’s first large-scale quantum computer. The partnership involves deploying PsiQuantum’s photonic technology at the SLAC National Accelerator Laboratory, where advanced cryogenic and photonic infrastructure will support scaling up its architecture.
These developments underscore both the strategic importance of quantum computing to national research initiatives and PsiQuantum’s role as a frontrunner in the global quantum race.
The Technology Behind PsiQuantum
PsiQuantum’s unique approach relies on photonic qubits. Unlike superconducting or ion-trap technologies that require extremely precise control over physical particles, photonic systems use light, which naturally experiences less decoherence. This makes them promising for creating stable, long-lasting qubits.
The company aims to build a fault-tolerant quantum computer with one million qubits, a scale widely regarded as necessary to achieve practical quantum advantage. To do this, PsiQuantum leverages mature semiconductor manufacturing processes, working closely with established fabrication facilities. This strategy could help overcome one of the biggest challenges in the field: scaling up from experimental prototypes to usable, commercial quantum machines.
Key Advantages of Photonic Quantum Computing
- Scalability: Photonics technology can be mass-produced using existing semiconductor foundries.
- Error Correction: PsiQuantum’s architecture is designed for fault tolerance, a requirement for practical applications.
- Integration: Photonic systems can be integrated with existing fibre optic technologies, offering smoother pathways to real-world deployment.
Founders and Leadership Team
PsiQuantum was founded by four physicists: Jeremy O’Brien, Terry Rudolph, Mark Thompson, and Pete Shadbolt. Each founder brings deep expertise in quantum physics and photonics, forming a strong scientific leadership team.
- Jeremy O’Brien (CEO): A physicist with extensive experience in quantum photonics, O’Brien previously led the Centre for Quantum Photonics at the University of Bristol. In 2011, he was elected to the Global Young Academy, an organisation that recognises outstanding early-career scientists from around the world (Global Young Academy).
- Terry Rudolph: A professor of quantum physics at Imperial College London, Rudolph has contributed significantly to quantum theory research.
- Mark Thompson: Also from the University of Bristol, Thompson specialises in integrated quantum photonics.
- Pete Shadbolt: With a background in quantum optics, Shadbolt has published widely on photonic quantum computing.
Their combined academic expertise and entrepreneurial vision have positioned PsiQuantum as a strong contender in the quantum race.
Global Context of PsiQuantum’s Valuation
The quantum computing sector has seen a surge of interest in the last decade, with governments, corporations, and venture capitalists pouring billions into the technology. PsiQuantum’s valuation reflects this broader trend, highlighting the confidence investors have in its photonic approach.
Compared to competitors such as IonQ, Rigetti Computing, and D-Wave Systems, PsiQuantum remains privately held, which has helped it maintain a strong valuation without the market fluctuations that affect publicly traded quantum companies. Its partnerships with semiconductor giants and its focus on fault tolerance have further reassured investors.
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Challenges Ahead
While PsiQuantum’s valuation underscores its potential, challenges remain. Building a million-qubit quantum computer is no small task, and the technical hurdles are immense. Key challenges include:
- Error Correction: Even photonic systems require robust error correction, which demands enormous overhead in terms of additional qubits.
- Scalability: Although photonics offers promise, scaling to millions of qubits is still theoretical.
- Commercialisation: Beyond building the machine, PsiQuantum must ensure real-world use cases that justify the investment.
Nevertheless, the company’s significant funding and partnerships suggest strong momentum towards addressing these challenges.
Future Outlook for PsiQuantum
PsiQuantum’s valuation is likely to rise further as it makes technical breakthroughs and secures new partnerships. The company is positioning itself as a global leader in quantum hardware, with the long-term goal of achieving quantum advantage, the point at which quantum computers can solve problems beyond the reach of classical machines.
Potential applications of PsiQuantum’s technology include:
- Drug discovery: Modelling molecular interactions at a quantum level.
- Climate science: Optimising carbon capture and energy systems.
- Finance: Enhancing risk modelling and portfolio optimisation.
- Artificial Intelligence: Improving machine learning algorithms through quantum methods.
If successful, PsiQuantum’s photonic quantum computer could unlock solutions to some of the world’s most complex challenges.
Conclusion
PsiQuantum’s valuation of over $3 billion reflects not just investor enthusiasm, but also the strategic importance of quantum computing to the global economy. With a strong leadership team, innovative photonic technology, and significant funding, PsiQuantum is well-positioned in the race to build the first large-scale, fault-tolerant quantum computer.
The road ahead is complex, but PsiQuantum’s unique approach and industry support make it one of the most watched companies in the quantum computing space. As advancements continue, its valuation will serve as a barometer of confidence in the transformative potential of quantum technologies.