Palo Alto-based photonic quantum hardware developer PsiQuantum has received a conditional loan commitment of up to $150 million from the U.S. Department of War’s Office of Strategic Capital (OSC). The proposed debt financing is targeted at expanding the company’s 140,000-square-foot advanced manufacturing, testing, and system integration hub (“PsiFactory”) in Milpitas, California. Deploying co-investments alongside federal financing, PsiQuantum aims to secure domestic supply chain capacity for the assembly, testing, and validation of prototype components underpinning its utility-scale fault-tolerant quantum computing (FTQC) architecture.
The conditional commitment from the OSC will support capital expenditure for specialized hardware validation equipment, infrastructure for subassembly integration, and advanced cryogenic systems required for large-scale photonic quantum prototype testing. Established to scale private investment in critical national security technology sectors, the OSC’s loan commitment remains subject to final execution pending PsiQuantum’s satisfaction of customary legal, financial, technical, and regulatory due diligence conditions.
| [ PsiQuantum U.S. Public-Sector Funding & Facility Portfolio ] | ||
|---|---|---|
| Agency / Entity | Funding Mechanism & Outlay | Strategic Mandate & Site Target |
| • Office of Strategic Capital | • Conditional direct loan up to $150M | • Milpitas, CA “PsiFactory” cryogenic testing & prototype manufacturing |
| • DARPA (QBI Program) | • $125M expanded agreement (July 2026) | • Stage C independent verification & validation (IV&V) testing |
| • U.S. Dept. of Commerce | • $100M CHIPS and Science Act award (Sept 2026) | • Onshore semiconductor fabrication & silicon photonics scaling |
| • Illinois / Chicago Hub | • Anchor tenant (Groundbreaking Sept 2025) | • Illinois Quantum and Microelectronics Park utility-scale deployment |
The OSC commitment follows a series of capital awards and infrastructure developments for PsiQuantum across the U.S. public sector, including a $125 million expanded contract under DARPA’s Quantum Benchmarking Initiative (QBI) in July 2026 and a definitive $100 million CHIPS and Science Act award in September 2026. Internationally, the company continues construction on its Moreton Bay Central utility-scale facility in Queensland, Australia, alongside its U.S. anchor site at the Illinois Quantum and Microelectronics Park in Chicago.
Review the release via the PsiQuantum Newsroom here, examine official program terms on the U.S. Department of War Release Portal here, and read our previous coverage on PsiQuantum’s $125 million DARPA QBI expansion here, PsiQuantum’s $100 million CHIPS Act award here, the Moreton Bay Central facility groundbreaking here, and the Illinois Quantum and Microelectronics Park site here.
In GQI Portal
The players behind the news
The team that writes QCR tracks every company, deal and technology in the GQI Factory, GQI's verified database of the quantum industry. Next up: every story linked to its players, coming to QCR's paid plans.
- Players Companies and institutions across the quantum industry, by segment.
- Scorecards How the players compare on hardware, software, funding and more.
Newsletter
QCR Alerts in your inbox
The latest reporting and analysis from Quantum Computing Report. Free, unsubscribe any time.