As it prepares to go public, Toronto-based quantum computing firm Xanadu could get as much as $390 million in government support for a major new quantum project.
Project OPTIMISM would “significantly advance” Xanadu’s roadmap toward “utility-scale” quantum computing.
Xanadu announced on Wednesday afternoon that it is negotiating with the Government of Canada and the Government of Ontario to support what it called Project OPTIMISM. Xanadu said the project would aim to establish advanced semiconductor and photonic manufacturing capabilities in Canada.
The company said up to $390 million in combined government support is under consideration.
Xanadu made the rare move of announcing negotiations with the government as it prepares to go public in a $3.6-billion USD special purpose acquisition company deal that could make it the first Canadian technology business to debut on the TSX in more than four years. Shareholders are expected to vote on whether the deal goes forward on March 19.
Xanadu said Project OPTIMISM would “significantly advance” its roadmap toward “utility-scale” quantum computing and quantum data center infrastructure, while offsetting a “substantial portion” of the capital required to develop that next phase of quantum computing deployment.
“We believe this investment, upon finalization, will unlock a major milestone for Xanadu and for Canada’s quantum ambitions,” Xanadu CEO Christian Weedbrook said in a statement. He added that, in combination with the funding from its pending go-public deal, the company will be “well-positioned” to fund large-scale quantum computing infrastructure. Xanadu has been positioning itself to build a quantum data centre by 2029.
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Xanadu said the proposed government support is still subject to due diligence and the execution of final agreements. BetaKit has reached out to Innovation, Science and Economic Development Canada and Ontario’s Ministry of Economic Development, Job Creation and Trade for comment.
Founded in 2016, Xanadu is working to use photonics-based quantum computing to perform exceptionally fast and complex computations at room temperature, quicker than traditional computers. Xanadu claims its approach offers a few advantages, including the ability to leverage modern chip manufacturing facilities and existing optical components like fibre optics.
Earlier this week, the federal government injected $900 million into the National Research Council of Canada through the Defence Industrial Strategy. That funding includes $161 million over five years “to advance Canada’s leadership in quantum technology for defence and security applications.”
With files from Josh Scott.
Feature image courtesy Xanadu.