PsiQuantum Lands Conditional Commitment for Up to $150 Million OSC Loan

PsiQuantum announced on October 8, 2026, that it has received a conditional commitment for a loan of up to $150 million from the U.S. Department of War’s Office of Strategic Capital (OSC), financing the company said would expand its advanced manufacturing and prototyping capabilities in the United States.

According to the announcement, the proposed financing remains strictly conditional and is not guaranteed. A final loan commitment will only be executed if PsiQuantum satisfies all applicable financial, legal, technical, and regulatory conditions outlined in the conditional commitment.

The financing would support PsiQuantum’s 140,000-square-foot hub in Milpitas, California, a facility the company calls PsiFactory, for scaling its technologies and developing and validating the prototype systems that underpin its fault-tolerant quantum computing architecture. Combined with co-investment from PsiQuantum, the financing would strengthen the company’s domestic capacity for design, testing, and system integration as it advances toward building utility-scale, fault-tolerant quantum computers in the United States, the company said.

PsiQuantum said the OSC financing would support its acquisition of critical infrastructure and equipment required for constructing, testing, and validating prototype quantum systems, including test equipment for the fabrication and validation of components, subassemblies, and system-level assemblies; critical infrastructure for system assembly, integration, and testing; and advanced cryogenic systems for prototype systems.

“Today’s announcement shows the U.S. government’s bold leadership and continued commitment to quantum computing as a critical technology for America’s economic prosperity and national security,” said Victor Peng, chief executive officer of PsiQuantum. Peng said that delivering on the full promise of the technology in the United States will require world-class manufacturing and engineering ecosystems, and that the potential financing underscores the role Washington can play.

Office of Strategic Capital Loan Program

OSC develops and implements strategies and partnerships to accelerate and scale private investment in critical supply chain technologies needed for national security, according to the office’s official program page. It offers direct loans of up to $150 million to finance projects in the United States.

Congress authorized OSC in the National Defense Authorization Act of 2024 and specified 31 covered technology categories that may receive OSC capital assistance. The office was established on December 1, 2022, as a finance organization within the Department of Defense. In August 2025, OSC announced the execution of its first direct loan, made to strengthen the U.S. industrial base and protect critical minerals supply chains.

Prior Federal Agreements

On July 22, 2026, PsiQuantum announced a $125 million expanded agreement with the Defense Advanced Research Projects Agency (DARPA) under the Quantum Benchmarking Initiative (QBI), which the company described as the U.S. government’s most rigorous effort to evaluate commercial pathways to utility-scale quantum computing. PsiQuantum said it remains one of two companies in Stage C, QBI’s final stage, which is focused on verifying and validating the company’s approach to building, deploying, and operating its utility-scale quantum computers as designed.

The company described the performance-based award as its most valuable government award to date. It supports testing and evaluation of PsiQuantum’s utility-scale hardware designs, critical components, system-level performance, and software development, and it enables the company to invest in infrastructure at its facilities in Milpitas and in Chicago, Illinois.

DARPA selected PsiQuantum in January 2023 for the initial stage of the Underexplored Systems for Utility-Scale Quantum Computing program, a QBI predecessor. The company entered the program’s second stage in January 2024 and advanced to Stage C in February 2025. In September 2025, PsiQuantum announced a $31.8 million agreement to continue on-site testing and evaluation under Stage C.

PsiQuantum announced on September 8, 2026, that it had signed definitive documentation with the U.S. Department of Commerce for a $100 million award under the CHIPS and Science Act, following a letter of intent signed in May 2026. PsiQuantum said the federal funding, combined with co-investment by the company, will accelerate the research and development, domestic manufacturability, and performance of its critical components, including high-performance optical switches, high-temperature single-photon detectors, and advanced packaging approaches.

In 2025, PsiQuantum invested approximately $200 million with hundreds of American suppliers and vendors across 38 states, according to the company. Since 2019, it has partnered with GlobalFoundries on scaling quantum photonic chipset production in the United States, and since 2022 it has worked with the Air Force Research Lab to advance semiconductor chip manufacturing and silicon photonics expertise for the U.S. Air Force.

In June 2026, PsiQuantum broke ground and started construction on its facility at Moreton Bay Central in Queensland, Australia; in September 2025, it broke ground on its site at the Illinois Quantum and Microelectronics Park in Chicago. The company said its approach to building fault-tolerant quantum computers leverages existing semiconductor manufacturing to rapidly scale its silicon photonics platform.