PsiQuantum has received a conditional commitment for a loan of up to $150 million from the US Department of Defense’s Office of Strategic Capital to expand quantum computing manufacturing and prototype testing in California.
If approved, the loan would fund equipment and infrastructure at PsiQuantum’s 140,000-square-foot (13,006-square-meter) facility in Milpitas.
The company would also invest its own funds in the expansion.
Planned purchases include component testing equipment, infrastructure for assembling and integrating prototype systems, and cryogenic systems used to cool quantum hardware.
The facility supports PsiQuantum’s development of fault-tolerant quantum computers, which are designed to correct errors that would otherwise disrupt calculations.
Other Federal Agreements
The proposed loan adds to PsiQuantum’s existing federal support, including a $100 million incentive award finalized with the Department of Commerce in September under the CHIPS and Science Act.
In July, the company announced an expanded $125 million agreement with the Defense Advanced Research Projects Agency (DARPA) through its Quantum Benchmarking Initiative, which assesses whether commercial quantum computing designs can deliver practical value.
The agreement followed a separate $31.8 million DARPA award in September 2025 for continued on-site testing and technical evaluation under the same initiative.
PsiQuantum has worked with the agency on quantum computing evaluations since 2022.
Its federal research partnerships also include work with the US Air Force Research Laboratory on semiconductor manufacturing and silicon photonics, a technology that uses light to transmit and process information on chips.
