PsiQuantum Secures $125 Million Expanded Agreement with DARPA under QBI Program

Photonic quantum computing developer PsiQuantum has signed a $125 million expanded tasking agreement with the Defense Advanced Research Projects Agency (DARPA) under the Quantum Benchmarking Initiative (QBI). The performance-based award represents PsiQuantum’s most valuable U.S. government contract to date.

The agreement funds verification and validation tasks for PsiQuantum's utility-scale hardware architecture, custom integrated photonic manufacturing processes, and supporting cryogenic infrastructure as the company advances through Stage C—QBI’s final assessment phase focused on independent technical verification.

Expanding On-Site Verification and Component-Level Testing

Building on a $31.8 million Stage C award from September 2025, the new $125 million tasking broadens DARPA’s hands-on evaluation framework. Under QBI Stage C, DARPA-led technical audit teams receive direct access to PsiQuantum’s internal design pipelines, manufacturing lines, and algorithm verification engines.

The expanded testing scope focuses on four key operational areas:

• Advanced Material Manufacturing: On-site inspection and yield auditing of barium titanate (BTO) thin-film electro-optic modulators produced at the PsiFactory facility in Milpitas, California.

• Photonic Edge Coupling & Assembly: Hands-on testing of automated, high-volume chip-to-fiber optical packaging and cryogenic interconnect assemblies.

• System-Level Cryogenic Validation: Verification of custom cabinet-scale cryogenic cooling infrastructure engineered to maintain photonic routing and detector arrays.

• Algorithmic Resource Benchmarking: Live verification of fault-tolerant algorithm resource estimates using Construct, PsiQuantum’s proprietary software platform for fault-tolerant compilation.

Capital Stacking and Manufacturing Buildout

The expanded DARPA tasking follows a May 2026 Letter of Intent signed between PsiQuantum and the U.S. Department of Commerce for $100 million in proposed direct funding under the CHIPS and Science Act. Combined with state-level capital commitments in Illinois—including its anchor role at the Illinois Quantum and Microelectronics Park (IQMP) in Chicago—PsiQuantum is scaling up domestic manufacturing capacity for its silicon-photonic quantum chips. By subjecting its photonic QPU designs to DARPA's independent scrutiny, PsiQuantum aims to validate its roadmap toward deploying a commercially useful, fault-tolerant quantum computer before 2033.

Review the official corporate press release on PsiQuantum here.

July 22, 2026