PsiQuantum has raised $1 billion in a Series E funding round at a $7 billion valuation, with Nvidia joining the list of investors and becoming a strategic partner, as quantum computing garners unprecedented interest from investors—what industry analysts are calling a "boom in quantum technology funding."

The Palo Alto-based quantum startup announced on Tuesday that the funding round was led by BlackRock, Temasek, and Baillie Gifford, with participation from NVentures—Nvidia's venture capital arm. This investment represents a significant shift for Nvidia, whose CEO, Jensen Huang, earlier this year expressed skepticism about the practical applications of quantum computing, viewing it as a decades-long challenge.

Photonic Approach and Manufacturing Scale

PsiQuantum's technology uses photons as quantum bits, or qubits, encoded in particles of light. Unlike competing approaches that require extreme cooling, photonic systems can operate at higher temperatures and leverage existing semiconductor manufacturing infrastructure. The company produces its quantum chips at GlobalFoundries' Fab 8 facility in New York, using standard production lines with 300 mm silicon wafers.

The funding will enable PsiQuantum to begin construction of industrial-scale quantum computing facilities in Brisbane, Australia, and Chicago. The company aims to create what it claims will be the world's first commercially useful and fault-tolerant quantum computer by 2027, featuring one million physical qubits.