PsiQuantum is developing fault-tolerant quantum computers using silicon photonics, which allows the hardware to be manufactured at existing semiconductor factories. The company partners with GlobalFoundries, a collaboration that has been in place since 2019.
To strengthen its domestic supply chain, PsiQuantum invested approximately $200 million in American suppliers in 2025. Additionally, the company signed a $125 million contract with the DARPA defense agency in July 2026 to test commercial paths for creating useful quantum computing systems.
The current grant is part of a larger government initiative. In May 2026, the US Department of Commerce announced plans to invest $2 billion into the domestic quantum industry, distributing funds among nine companies.
IBM is expected to receive $1 billion, while GlobalFoundries is allocated $375 million for production facilities. The remaining funds will go to seven startups, including PsiQuantum, Atom Computing, and D-Wave, to solve engineering challenges. In exchange for these subsidies, the US government takes minority stakes in all funded companies.
