Key points
- IBM and IonQ advance to DARPA's final quantum testing stage
- IonQ's agreement could be worth up to $300 million
- PsiQuantum gets a conditional $150 million loan commitment
IBM (IBM) and IonQ (IONQ) are moving into the final stage of a DARPA program testing whether quantum computers can deliver more value than they cost.
DARPA announced their advancement on October 7 alongside Atom Computing and Diraq. The four join Microsoft (MSFT) and PsiQuantum in Stage C of the Quantum Benchmarking Initiative.
The Department of War included the advancements in about $350 million of quantum initiatives announced October 8. That package also includes a conditional loan commitment of about $150 million to privately held PsiQuantum.
Stage C tests whether the machines can be built
The initiative’s target is utility-scale quantum computing by 2033. DARPA says it isn't a competition and isn't meant to pick winners.
In Stage C, a government team works with each company to check whether its proposed system can be built as designed and run as intended. "Stage C is where we begin moving from plans to proof," said Micah Stoutimore, who runs the initiative at DARPA.
The four new entrants use different technologies. Atom Computing uses neutral atoms, Diraq uses silicon spin qubits, IBM uses modular superconducting processors, and IonQ uses trapped ions.
IonQ's $300 million figure is a ceiling
The Department of War said the four Stage C advancements represent about $200 million in new funding, building on more than $650 million DARPA has already invested in prospective quantum computing providers.
IonQ said its own Stage C agreement has a potential value of up to $300 million, with funding beyond the initial obligation subject to future appropriations and DARPA funding actions. Neither release reconciles the two figures. IonQ's number is a ceiling, not money already committed.
PsiQuantum's loan is conditional
The Office of Strategic Capital's commitment would support PsiQuantum's advanced manufacturing and prototyping in the US. PsiQuantum is building a quantum computer that uses photons, and the loan follows funding agreements it recently signed with DARPA and the CHIPS program.
Before the loan closes, PsiQuantum still has to meet financial, legal, technical, and due diligence requirements. A day earlier, the same office offered Wolfspeed a conditional $1.5 billion loan that comes with its own list of conditions.
