According to the Economic Times, quantum computing startup PsiQuantum announced Wednesday it raised $1 billion in Series E funding at a $7 billion valuation. The round was led by BlackRock, Temasek, and Baillie Gifford, with participation from new investors including NVentures, Nvidia's venture capital arm, along with Macquarie Capital and Ribbit Capital.

PsiQuantum will use the funding to break ground on quantum computing sites in Brisbane, Australia and Chicago, Illinois. The company also plans to deploy large test systems to validate its design architecture. The startup aims to build what it calls the world's first million-qubit, fault-tolerant quantum computers using silicon photonic technology.

The company has partnered with GlobalFoundries to manufacture its quantum photonic chips at the semiconductor manufacturer's New York factory. PsiQuantum said it will collaborate with Nvidia on quantum computing programs, connecting the chip designer's hardware to quantum machines while improving the startup's light-based silicon-photonics chips.

Why This Matters

The funding represents one of the largest single private investments in quantum computing to date. Fast Company reports that Nvidia's investment shows a remarkable turnaround for the company. At his January 2025 CES keynote, Nvidia CEO Jensen Huang suggested useful quantum computers were still about 20 years away, sending quantum stocks plunging.

However, Huang revised his assessment by June 2025, declaring at the GPU Technology Conference in Paris that "quantum computing is reaching an inflection point." NVentures' investment in PsiQuantum is its third quantum deal since the start of September 2025, including funding rounds for Quantinuum and QuEra. The deal comes during what analysts describe as a frenzied week for quantum computing funding, reflecting growing investor confidence in the sector's commercial potential.

Industry Implications

The investment reflects a broader shift in quantum computing from research to commercial deployment. McKinsey research shows that for the first time since monitoring began four years ago, the quantum technology market is moving from development to deployment. Public funding increased 19 percentage points relative to 2023 to account for 34 percent of 2024 funding, or $680 million.

Two late-stage startups, PsiQuantum and Quantinuum, received half of total quantum investment in 2024, showing investor confidence in mature companies. The Quantum Insider data shows Q1 2025 quantum investment surged to over $1.25 billion, more than doubling the previous year. Quantum computer companies received more than 70% of all quantum-related funding, with the trend driven by improved technology maturity, rising enterprise interest, and geopolitical urgency.

The quantum computing market generated $650 million to $750 million in revenue in 2024 and is expected to surpass $1 billion in 2025. McKinsey projects the sector could grow from $4 billion in revenue in 2024 to as much as $72 billion in 2035.

Further Reading

For deeper insights into global adoption trends, our Alternative Financial Systems Index tracks regulatory frameworks and adoption metrics across 50 countries. The index provides comprehensive analysis of how emerging technologies are reshaping financial infrastructure worldwide.