Joint investment of $940 million in California-based quantum computing company PsiQuantum by the federal and Queensland governments was announced on 30 April.
Prime minister Anthony Albanese, federal industry minister Ed Husic and Queensland premier Steven Miles were present in Brisbane when Queensland treasurer Cameron Dick officially announced the funding.
PsiQuantum, which includes two Australians among its founders, plans to develop the world’s first fully-functioning quantum computer in Brisbane.
The federal and Queensland governments are each contributing $470 million through share purchases, grants and loans to PsiQuantum. This is the federal government’s third large financial commitment to its Future Made in Australia policy, following $1 billion to establish a domestic solar panel manufacturing industry and $1.5 billion to establish critical minerals projects in Australia.
PsiQuantum has agreed to locate its regional headquarters in Queensland and base its quantum computer development there.
Quantum computers are expected to be much more powerful than conventional computers. This would be especially valuable in areas requiring massive fast number-crunching such as drug research, artificial intelligence and cybersecurity.
The calculations of conventional computers are based on bits which represent either zero or one. Quantum computer calculations are based on qubits which can exist in a multi-dimensional state. This means the power of quantum computers grows exponentially with the addition of more qubits whereas adding more bits only increases the power of conventional computers linearly.
Qubits, however, are unstable and require error correction to create a usable computer. This major challenge is being addressed by numerous companies around the world, including technology giants Microsoft, Google and IBM. Many of these projects are backed by home government funding.
Other challenges include maintaining ultra-low temperatures needed for quantum computers to operate. PsiQuantum’s photonics-based technology is claimed to be less dependent on ultra-low temperatures than other technologies but still requires substantial cooling. Last year the company formed a partnership with the US Department of Energy to develop advanced refrigeration.
Ahead of the announcement, Albanese said: “We need to make bold investments today if we want to see a Future Made in Australia.
“We are proud to be working with the Queensland government to make visionary investments in the future of our nation. This investment shows we are serious about building a strong quantum ecosystem here in Australia.”
Queensland premier Steven Miles said: “Today’s announcement cements Queensland’s position as a global leader in the quantum technology industry, backed by our dedicated Quantum and Advanced Technologies Strategy.
“Quantum will bring billions in economic opportunity to Queensland, which will deliver thousands of high-paying tech jobs and the chance for Queenslanders to work in careers that will change the world.”
PsiQuantum was founded by a team of four including Australian professors Jeremy O’Brien and Terry Rudolph. O’Brien, the company’s chief executive, has reaffirmed the company’s objective of developing an “error-corrected” quantum computer within five years.
At a February Senate estimates hearing, officials of the Department of Science Industry and Resources confirmed the department had approached 21 companies for information about their quantum computing development.
Science minister Ed Husic said that confidential information and advice from the office of federal government chief scientist Dr Cathy Foley, AO, had been provided to cabinet before it selected PsiQuantum.
Husic said the company had met milestones to date and the federal government funding would be dependent on it achieving further milestones.
PsiQuantum’s last disclosed funding round was in 2021 when it announced it had raised $US450 million from institutional investors including BlackRock at a valuation of $US3.15 billion.
Husic said the federal government’s investment had been at around that valuation.
Professor O’Brien confirmed that Blackbird Ventures had invested in PsiQuantum since its 2021 round.
He said the governments’ investment would enable the company to take “a massive step forward in our mission to help deliver on the promise of quantum computing”.
PsiQuantum plans to have its production facility near Brisbane airport operational by the end of 2027 and to be in commercial production in 2029.
Image: A quantum computer chip. Photo credit: Bet_Noire.