The US government announced $2 billion in CHIPS Act funding directed toward nine quantum computing companies, including Australian-founded startups Diraq and PsiQuantum. This strategic investment features minority equity stakes and aims to accelerate the commercialization and scaling of cutting-edge quantum technologies.
- Diraq and PsiQuantum receive significant CHIPS Act investments
- US government takes minority equity stakes in nine quantum firms
- Funding supports silicon and photonic quantum technology scale-up
What happened
The US government announced letters of intent totaling $2 billion in funding to nine quantum computing companies under the CHIPS Act. Australian-origin companies Diraq and PsiQuantum were key beneficiaries, with Diraq slated to receive up to $38 million to advance its silicon-based quantum processors, and PsiQuantum allocated $100 million for its photonic technology developments. Other major recipients include IBM and GlobalFoundries, receiving $1 billion and $375 million respectively to develop new quantum manufacturing capabilities.
In exchange for funding, the government will take minority equity stakes in the recipients. This investment approach has precedent in prior deals with notable tech and resource companies. The announcement reaffirms the US commitment to fostering domestic quantum technology innovation and scaling efforts to industrial levels.
Why it matters
This substantial infusion of federal capital is intended to accelerate the transition of quantum computing from research-heavy exploration to practical, industrial-scale technology. By supporting companies like Diraq and PsiQuantum, the US government leverages the combination of silicon CMOS processes and photonics to enhance fault-tolerant quantum computing pathways. The investments also reinforce strategic supply chains and semiconductor manufacturing infrastructure within the US.
For Australian startups such as Diraq, which spun out from UNSW Sydney and already has significant funding and US operations, this deal cements deeper international collaboration. The involvement of large industry players alongside startups aims to establish a reliable ecosystem that can meet growing quantum computing demands, positioning these technologies as foundational to future supercomputing capabilities.
What to watch next
Key developments will focus on the execution of these funding agreements, including the scale-up of silicon quantum dot processors by Diraq and the advancement of photonic quantum systems by PsiQuantum. Monitoring how these companies integrate with domestic fabrication partners like GlobalFoundries will provide insight into the shaping of a secure and scalable US quantum manufacturing base.
Additionally, the impact of government minority equity stakes on the commercialization and governance of these companies will be important to observe. Broader industry progress, especially with IBM's new quantum foundry and the emerging business units focused on quantum technology solutions, will also signal how quickly quantum computing is transitioning from laboratory settings to industrial and commercial deployment.