PsiQuantum, a Palo Alto, California-based quantum computing company, announced on October 8, 2026, that it had received a conditional loan commitment of up to $150 million from the US Department of War’s Office of Strategic Capital (OSC).
The proposed debt financing would support the expansion of PsiQuantum’s advanced manufacturing, prototype development and testing capabilities in the United States. The commitment remains subject to financial, legal, technical and regulatory conditions before a final loan agreement can be executed.
The financing is intended to support PsiQuantum’s 140,000-square-foot PsiFactory facility in Milpitas, California. The company plans to use the funding to acquire specialised equipment for component fabrication and validation, infrastructure for system assembly and integration, and advanced cryogenic systems required for prototype quantum computers.
PsiQuantum would also contribute its own capital alongside the proposed government financing to expand its domestic manufacturing and testing operations.
PsiQuantum develops quantum computing systems based on silicon photonics, using photons as quantum information carriers. Its approach combines semiconductor manufacturing processes, optical components and quantum error correction to develop scalable, fault-tolerant quantum computers.
The company was co-founded by Jeremy O’Brien, Terry Rudolph, Pete Shadbolt and Mark Thompson. Victor Peng serves as Chief Executive Officer.
The conditional loan commitment follows several previously announced financing and government agreements.
In July 2026, PsiQuantum signed an expanded $125 million agreement with the Defense Advanced Research Projects Agency (DARPA) under its Quantum Benchmarking Initiative, which evaluates approaches to developing utility-scale quantum computers.
In September 2026, the company finalised documentation for a separate $100 million award from the US Department of Commerce under the CHIPS and Science Act to support quantum computing and semiconductor technology development.
PsiQuantum also announced a $1 billion Series E equity financing round in September 2025 to support its quantum computing development plans.
The proposed OSC loan is not guaranteed and does not represent completed financing. Any final loan commitment will depend on PsiQuantum satisfying the conditions established by the government.
