Australia’s PsiQuantum has received a conditional commitment for a $150 million loan from the US Department of Defense’s (stylized as the Department of War) Office of Strategic Capital (OSC).

The financing would be used to expand the company’s advanced manufacturing and prototyping efforts in the US, providing support for PsiQuantum’s 140,000 sq ft (13,006 sqm) research, development, and manufacturing hub in Milpitas, California.

Dubbed PsiFactory, the facility is where PsiQuantum carries out its barium titanate (BTO) manufacturing and assembles its test systems. BTO is an advanced material for low-loss, high-speed optical switching.

The building was previously inhabited by chipmaker Analog Devices, which left the site in 2022.

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 DoD said in a statement.

“Today’s announcement shows the US 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, CEO of PsiQuantum. “Delivering on the full promise of this technology in the United States will require world-class manufacturing and engineering ecosystems, and this potential financing underscores the vital role Washington can play.”

Founded in 2016, PsiQuantum says its mission is to “build and deploy the world’s first useful quantum computer.” The company claims to have a “fast and feasible path to large-scale fault-tolerant systems” by using existing technologies, such as high-power cryogenic systems.

In February 2025, PsiQuantum unveiled its Omega quantum photonic chipset, purpose-built for utility-scale quantum computing. The company also broke ground on its site at the Illinois Quantum and Microelectronics Park in Chicago in September of that same year.

In addition to the US sites, the company has an R&D facility in Daresbury in the northwest of England, which focuses on large-scale cryogenic infrastructure to support the development of advanced cryogenic systems.

In May 2026, PsiQuantum was one of nine quantum computing companies the US Department of Commerce signed letters of intent with to provide a total of $2.013 billion in federal incentives under the CHIPS and Science Act. Under the terms of that agreement, PsiQuantum was awarded $100 million in exchange for the government taking a non-controlling equity stake in the company.

Earlier this week, it was announced that PsiQuantum had reached the final stage of the US government’s Defense Advanced Research Projects Agency’s (DARPA) Quantum Benchmarking Initiative. Alongside Microsoft, the company advanced to Stage C following participation in the Underexplored Systems for Utility-Scale Quantum Computing (US2QC) initiative.