PsiQuantum Just Raised $1 Billion for Quantum Computers

PsiQuantum raised $1 billion this week. That's not a typo. One billion dollars for a company that hasn't shipped a working quantum computer yet. The Palo Alto startup is now worth around $7 billion, which puts it ahead of companies that actually make things people buy.

Here's the thing about quantum computing: it's been "just around the corner" for 20 years. Every few months, someone announces a breakthrough, gets splashy headlines, then reality sets in when the demo only works at temperatures colder than outer space. I've seen researchers spend weeks debugging quantum algorithms only to realize the building's elevator was causing decoherence errors.

But BlackRock and Temasek just threw serious money at PsiQuantum anyway. Either these firms know something the rest of us don't, or they're betting on quantum hype lasting long enough to flip this to someone else.

PsiQuantum's approach is different from the usual suspects. Instead of those finicky superconducting circuits that need to be kept at near absolute zero, they use light. Photons instead of electrons. The theory is solid - light isn't affected by temperature fluctuations or electromagnetic interference that destroys quantum states.

Their plan: build quantum computers with a million qubits. For context, IBM's latest quantum computer has 1,121 qubits and Google's is around 70. A million qubits would theoretically solve drug discovery problems that would take classical computers longer than the age of the universe.

But here's where the skepticism kicks in. Quantum computing has burned through billions over the past decade. Sure, the physics works in labs, but practical quantum computers that outperform regular computers on real problems? Still theoretical.

I watched D-Wave promise quantum supremacy for years while their machines struggled with problems a decent GPU could handle. Google claimed quantum supremacy in 2019, then IBM disputed the claim and showed they could solve the same problem classically in 2.5 days instead of 10,000 years.

The timing feels suspicious too. With AI stocks flying high and investors desperate for the next platform shift, quantum computing is getting AI-level funding. Whether that's because the technology is finally ready or because investors have FOMO is anyone's guess.

Look, quantum computing is genuinely cool science. The physics works, the math checks out, and yes, a working quantum computer could solve problems that would make today's supercomputers cry. But let's be real about what PsiQuantum is actually selling.

Every quantum computer demo you've seen runs at temperatures that would make liquid nitrogen look warm. IBM's quantum computers need cooling systems that cost more than most people's houses - their latest 1,121-qubit Condor processor runs at 0.015 Kelvin. Google's quantum computer has to be isolated from vibrations so carefully that a truck driving by can fuck up the calculations. I've seen researchers spend weeks debugging quantum algorithms only to realize the building's elevator was causing decoherence errors.

PsiQuantum says they can fix this with light instead of electricity. Photons don't need to be kept at near absolute zero, which sounds great until you realize that photonic quantum computing has its own problems. Photons are notoriously hard to control - they like to escape, scatter, or just disappear when you're not looking. I watched a demo once where a single photon detector going bad took down the entire system for three days. Building a million-qubit system with photons is like herding cats, except the cats are invisible and move at the speed of light.

The company plans to use existing semiconductor manufacturing, which is smart if it works. But here's the thing: semiconductor fabs are optimized for making transistors, not quantum computers. Adapting those processes for quantum photonics isn't just a software update - it's rebuilding the entire manufacturing pipeline from scratch.

Then there's the competition. IBM has been at this for decades and has actual quantum computers you can use today (kind of). Google demonstrated quantum supremacy, even if it was on a carefully chosen problem that nobody actually needs to solve. Microsoft has been throwing money at quantum computing for over a decade with mixed results. Intel, Amazon, and every major tech company has quantum research teams.

What makes PsiQuantum different? They promise to skip the incremental improvements and jump straight to useful quantum computers. That's either brilliant or delusional, and with quantum computing, those often look the same until someone actually ships something that works.

The $1 billion bet says investors think PsiQuantum might be onto something. But investors also thought Theranos was going to revolutionize healthcare, so take that with a grain of salt. Still, BlackRock doesn't throw around billion-dollar investments lightly, so maybe photonic quantum computing is finally ready for prime time.