PsiQuantum, a quantum computing company based in Palo Alto, California, has received a conditional commitment for a loan of up to $150 million from the U.S. Department of War’s Office of Strategic Capital (OSC).
The proposed financing will support the company’s advanced manufacturing and prototyping capabilities in the United States as it works to develop large-scale, fault-tolerant quantum computers.
The funding would help expand PsiQuantum’s 140,000-square-foot manufacturing and research facility in Milpitas, California. The company plans to use the financing to acquire specialized equipment and infrastructure needed to build, test and validate prototype quantum computing systems.
However, the loan is not yet finalized. PsiQuantum must meet the applicable financial, legal, technical and regulatory requirements before a final commitment can be issued.
How PsiQuantum Plans to Use the $150 Million Loan
PsiQuantum plans to use the potential financing to strengthen its domestic manufacturing capabilities and support the development of its quantum computing technology.
The proposed investment would cover several areas, including equipment for manufacturing and testing components, infrastructure for assembling and integrating quantum systems, and advanced cryogenic systems required for prototype development.
The company’s Milpitas facility, known as PsiFactory, plays an important role in its manufacturing operations. It supports the production of specialized photonic components and the assembly of test systems used in quantum computing development.
By expanding these capabilities, PsiQuantum aims to improve its ability to develop and validate the complex systems required for fault-tolerant quantum computers.
PsiQuantum Develops Photonic Quantum Computers
Founded in 2016, PsiQuantum is working to build useful, large-scale quantum computers using a photonic approach.
Unlike conventional computers, which process information using bits, quantum computers use quantum bits, or qubits, to perform certain types of calculations in fundamentally different ways.
PsiQuantum’s approach uses photons, or particles of light, to carry quantum information. The company aims to take advantage of semiconductor manufacturing techniques and existing infrastructure to scale its technology.
Its long-term goal is to develop fault-tolerant quantum computers capable of performing complex calculations reliably at a commercially useful scale.
In February 2025, the company introduced its Omega quantum photonic chipset, designed for utility-scale quantum computing.
Building such systems requires specialized manufacturing processes, sophisticated testing equipment and advanced cryogenic infrastructure. The proposed government loan would help PsiQuantum expand these capabilities in the United States.
PsiQuantum Expands Its US Government Partnerships
The potential $150 million loan is part of a broader series of government-backed initiatives involving PsiQuantum.
In July 2026, the company announced an expanded $125 million agreement with the Defense Advanced Research Projects Agency (DARPA) under its Quantum Benchmarking Initiative. PsiQuantum has participated in the program since 2022.
The company also signed definitive documentation in September 2026 for $100 million in federal incentives under the CHIPS and Science Act to support quantum computing and semiconductor development in the United States.
Additionally, PsiQuantum has worked with the U.S. Air Force Research Laboratory since 2022 on semiconductor chip manufacturing and silicon photonics.
These initiatives support the development of domestic expertise in quantum computing, advanced manufacturing and related technologies.
Why Quantum Computing Manufacturing Matters
Developing practical quantum computers requires more than advances in quantum physics. Companies must also build manufacturing systems capable of producing, assembling and testing highly specialized components at scale.
PsiQuantum’s photonic approach is designed to leverage established semiconductor manufacturing techniques, but building complete quantum computing systems still requires specialized equipment and infrastructure.
The company believes that expanding its US manufacturing capacity will help it move closer to deploying large-scale, fault-tolerant quantum computers.
Government support could also help strengthen domestic supply chains for technologies considered important to future computing capabilities and national security.
What Comes Next for PsiQuantum?
PsiQuantum plans to continue developing its manufacturing infrastructure and prototype systems as it works toward its long-term quantum computing goals.
The proposed $150 million loan would provide additional support for equipment acquisition, system integration and testing at its Milpitas facility. However, the financing remains conditional and should not be treated as money already received.
With additional government-backed initiatives, including its DARPA collaboration and CHIPS Act incentives, PsiQuantum is continuing to build its manufacturing and research capabilities.
The company’s next challenge is to translate its advances in photonic technology and manufacturing into reliable, large-scale quantum computing systems.
