Reseach Note: PsiQuantum, Quantum Computing
Company
PsiQuantum is a quantum computing company founded in 2016 with the mission to build and deploy the first practical quantum computers using a photonic qubit approach. The company was established by a team of world leaders in linear optical quantum computing with a combined 60 years of experience in the field, including Jeremy O'Brien (CEO), Terry Rudolph (Chief Architect), Pete Shadbolt (Chief Strategy Officer), and Mark Thompson (Chief Technologist). Based in Palo Alto, California, PsiQuantum focuses on creating large-scale, fault-tolerant quantum systems by leveraging existing semiconductor manufacturing infrastructure rather than building entirely new fabrication methods. The company has identified a viable path to building quantum computers by taking a photonics approach, which they believe offers significant advantages at the scale required for fault-tolerance. Their strategy involves close collaboration with established semiconductor manufacturers, notably through partnerships with companies like GlobalFoundries to produce silicon photonic chips for future quantum computing systems. PsiQuantum maintains a strong focus on the entire quantum computing stack, from photonic and electronic chips through packaging, control electronics, and cryogenic systems to quantum architecture and applications. Their team includes world-class engineers and scientists working across these various domains to create a complete, integrated quantum computing solution. The company's long-term vision centers on building a useful, large-scale quantum computer capable of solving important challenges in fields including climate, healthcare, finance, energy, agriculture, transportation, and communications.
Market
The quantum computing market is still emerging but has garnered significant attention from investors, governments, and corporations seeking to establish early positioning in what could become a transformative technology sector. PsiQuantum operates in a competitive landscape that includes other approaches to quantum computing such as superconducting qubits (IBM, Google), trapped ions (IonQ, Quantinuum), silicon spin qubits (Intel), and topological qubits (Microsoft). Unlike many competitors focusing on near-term quantum computers with noisy qubits (NISQ), PsiQuantum has taken a longer-term approach by focusing exclusively on building fault-tolerant systems capable of solving commercially valuable problems. The company has received validation from the market through substantial investment, having raised approximately $1.29 billion in funding across six rounds from 24 investors, with a reported valuation of $3.15 billion. Major investors include BlackRock, Baillie Gifford, M12 (Microsoft's venture fund), Temasek, and Founders Fund, indicating strong confidence from both financial and strategic investors. Market analysts note that PsiQuantum's focus on leveraging existing semiconductor manufacturing infrastructure could provide advantages in scaling production once their technology matures. The quantum computing market as a whole is projected to grow significantly, with potential applications across pharmaceuticals, materials science, logistics, financial modeling, and machine learning, all areas where PsiQuantum is positioning itself to compete. Their full-stack approach, developing both hardware and software solutions, aligns with market expectations that successful quantum computing companies will need to provide comprehensive solutions rather than narrow technological components.
Product
PsiQuantum is developing a complete quantum computing system based on photonic qubits, which use particles of light as the fundamental units of quantum information. Their approach differs from competitors by using silicon photonics technology manufactured in conventional semiconductor fabrication facilities, which they believe offers greater scalability than other quantum computing methods. The company is building the entire technology stack required for quantum computing, from the photonic and electronic chips through packaging, control electronics, cryogenic systems, quantum architecture, fault tolerance, and quantum applications. In April 2022, PsiQuantum announced an analysis of how electrolyte molecules in Lithium-ion batteries can be simulated on a fault-tolerant quantum computer, demonstrating potential applications in electric vehicle battery design. Their technology roadmap aims toward building a one-million-qubit machine, which would be orders of magnitude larger than current quantum systems available from competitors. PsiQuantum has partnered with GlobalFoundries to manufacture silicon photonic chips at their semiconductor facility in Bloomington, Minnesota, showing progress toward integrating quantum technology with established manufacturing processes. The company is developing a full software stack to complement their hardware, addressing the need for specialized algorithms and tools to leverage quantum computational advantages. PsiQuantum has highlighted that their approach offers significant advantages for quantum error correction, which is considered essential for practical quantum computing applications.
Strengths
PsiQuantum's primary strength lies in its photonic approach to quantum computing, which offers potential advantages in scalability and error correction compared to competing technologies. The company has secured substantial funding of $1.29 billion, placing it among the best-funded quantum computing startups and providing runway for the long-term development necessary in this technically challenging field. Their leadership team brings extensive experience in quantum computing, with founders who are recognized experts in photonic quantum technologies and have a combined 60 years of experience advancing the field academically before starting the company. By leveraging existing semiconductor manufacturing infrastructure through partnerships with companies like GlobalFoundries, PsiQuantum has a potential path to scale production once their technology matures without building entirely new fabrication facilities. Their full-stack development approach, addressing hardware, control systems, and software concurrently, positions them to deliver complete quantum computing solutions rather than isolated components. The company has demonstrated foresight in focusing on fault-tolerance from the beginning, rather than rushing to market with limited NISQ devices that may not deliver practical quantum advantage. PsiQuantum has established strategic partnerships not only with manufacturers but also with research institutions and government agencies, including funding from the U.S. Air Force Research Laboratory to advance quantum computing technology. Reviews from Blind indicate strong company culture ratings (5.0/5), suggesting an effective internal environment for the demanding technical work required to advance quantum computing technology.
Weaknesses
Despite substantial funding, PsiQuantum faces the challenge of a lengthy development timeline before demonstrating commercially viable quantum computers, with practical applications potentially years away. According to Glassdoor reviews, the company's rating has decreased by 9% over the last 12 months to 3.4 out of 5, suggesting potential internal challenges. Only 60% of employees would recommend working at PsiQuantum to a friend, which indicates moderate levels of employee satisfaction compared to leading technology companies. The company's focus on long-term fault-tolerant systems means they may miss near-term revenue opportunities from NISQ applications that competitors are pursuing. PsiQuantum's ambitious goal of building million-qubit systems faces enormous technical challenges in scaling, error correction, and system integration that have not been solved by any quantum computing approach. The company faces competition from well-resourced technology giants like IBM, Google, and Microsoft, who are investing heavily in alternative quantum computing approaches and have greater overall resources. Recent news indicates potential uncertainty regarding government funding, with the Queensland government in Australia launching a review into a $1 billion investment deal with PsiQuantum, suggesting possible challenges in securing or maintaining some funding sources. Employees on Glassdoor rate their compensation and benefits lowest (3.0/5 on Blind), which could impact talent acquisition and retention in the highly competitive field of quantum technology.
Technology
PsiQuantum's core technology is based on photonic qubits, using particles of light to process quantum information, which offers advantages in terms of coherence and scalability. Unlike superconducting or trapped ion approaches that require extreme cooling to near absolute zero, photonic systems potentially allow for less extreme operating conditions. The company's manufacturing approach leverages conventional semiconductor fabrication techniques, working with partners like GlobalFoundries and SkyWater Technology to produce silicon photonic chips that will become part of future quantum computing systems. In May 2023, PsiQuantum expanded its development agreement with SkyWater Technology to produce silicon photonic chips at their semiconductor manufacturing facility in Bloomington, Minnesota. Their technology roadmap involves building a fault-tolerant quantum computer with one million physical qubits, which would represent a dramatic scaling compared to current quantum computing systems that typically have fewer than 1,000 qubits. PsiQuantum is working on the full technology stack, including photonic and electronic chip design, packaging and control electronics, cryogenic systems, quantum architecture, fault tolerance algorithms, and quantum applications. The company's integration with conventional semiconductor manufacturing processes represents a novel approach to scaling quantum computing hardware compared to competitors who often rely on more specialized fabrication methods. Their progress in manufacturing technology was recognized in January 2024 when DARPA advanced PsiQuantum to the second phase of its Utility-Scale Quantum Computing program, validating their technical approach.
Client Voice
While direct client testimonials are limited due to the pre-commercial stage of PsiQuantum's technology, industry analysts and potential enterprise users have expressed interest in the company's long-term approach to quantum computing. "PsiQuantum is developing the full stack, from hardware to software," noted one Reddit commenter, highlighting the potential advantage of their integrated approach compared to competitors. Quantum computing researchers have expressed cautious optimism about PsiQuantum's photonic approach, with some noting that it offers theoretical advantages for scaling to the millions of qubits likely needed for fault-tolerant computing. Potential enterprise users in fields like automotive manufacturing have shown interest in PsiQuantum's analysis of how quantum computing could accelerate electric vehicle battery design by simulating electrolyte molecules. Government agencies have demonstrated confidence in PsiQuantum's approach, with DARPA advancing the company to the second phase of its Utility-Scale Quantum Computing program in January 2024. Investors have provided the strongest vote of confidence, with BlackRock leading a $450 million Series D funding round and other major investors including Microsoft's venture fund M12, Baillie Gifford, and Temasek contributing to the company's total $1.29 billion in funding. The Queensland government's billion-dollar investment (though now under review) represents significant confidence from a government entity in PsiQuantum's technology roadmap. Industry partnerships, including the expanded development agreement with SkyWater Technology announced in May 2023, indicate growing confidence in the company's technological approach from established semiconductor manufacturers.
Bottom Line
PsiQuantum represents a bold, long-term bet on achieving fault-tolerant quantum computing through a photonic approach integrated with conventional semiconductor manufacturing. With $1.29 billion in funding and a valuation of $3.15 billion, the company has secured the financial runway needed to pursue its ambitious technical goals without rushing to market with limited capabilities. The company's focus on photonic qubits and fault tolerance differentiates it from many competitors who are pursuing near-term commercial applications with more limited NISQ devices. PsiQuantum's success will depend on overcoming enormous technical challenges in scaling quantum systems while maintaining the error correction capabilities necessary for practical applications. The leadership team's deep expertise in photonic quantum computing and their partnerships with established semiconductor manufacturers like GlobalFoundries create a foundation for potential long-term success. While employee reviews suggest some internal challenges with a moderate 3.4/5 Glassdoor rating, the company maintains a positive business outlook with 68% of employees optimistic about its future. For investors and potential customers, PsiQuantum represents a high-risk, high-reward proposition that could deliver transformative computing capabilities if successful, but with a timeline extending years into the future. The company's focus on leveraging existing semiconductor manufacturing infrastructure could provide significant advantages in scaling production compared to quantum approaches requiring entirely new fabrication methods, potentially accelerating commercialization once the core technology is proven.
Appendix: Strategic Planning Assumptions
Because PsiQuantum's photonic qubit approach offers inherent advantages in coherence times and error correction when implemented at scale, combined with their strategic partnerships with established semiconductor manufacturers and substantial funding of $1.29 billion, by 2030 they will demonstrate a quantum computing system with at least 10,000 physical qubits and error rates below current industry benchmarks. (Probability: 0.75)
Because PsiQuantum has secured partnerships with GlobalFoundries and SkyWater Technology for manufacturing silicon photonic chips using conventional semiconductor fabrication methods, enabling production scalability beyond what's possible with specialized quantum fabrication approaches, by 2030 the company will be producing quantum processors at volume sufficient to support at least 50 enterprise customer deployments. (Probability: 0.70)
Because PsiQuantum's leadership team possesses deep expertise in photonic quantum computing with a combined 60 years of experience and has demonstrated success in securing funding and advancing their technical roadmap, combined with DARPA's validation through advancing them to the second phase of its Utility-Scale Quantum Computing program, by 2028 the company will showcase at least three commercially valuable quantum applications delivering provable advantage over classical computing approaches. (Probability: 0.65)
Because PsiQuantum's full-stack development approach addresses hardware, control systems, and software concurrently and their focus on fault-tolerance from inception rather than rushing to market with limited NISQ devices, reinforced by their substantial funding providing runway for long-term development, by 2030 they will establish commercial leadership in at least two industry-specific quantum computing applications. (Probability: 0.60)
Because PsiQuantum's integration with conventional semiconductor manufacturing processes provides a novel approach to scaling quantum computing hardware compared to competitors relying on more specialized fabrication methods, combined with their strategic focus on building one-million-qubit fault-tolerant systems rather than interim solutions, by 2032 they will achieve quantum advantage in solving commercially significant problems in at least one of their target domains of climate, healthcare, finance, or materials science. (Probability: 0.55)