Australia's Quantum Bet: PsiQuantum, Silicon Quantum Computing and Diraq
Two paths, one country
Australia has an unusual quantum mix. On one side is a large, headline deal to host a foreign company's utility scale machine. On the other are two homegrown startups, both spun out of the University of New South Wales, betting that silicon, the material of ordinary chips, is the best home for qubits. Between them they cover two very different philosophies: import a giant, and grow your own.
PsiQuantum in Brisbane
Austrade reports that on May 2, 2024, the Australian and Queensland governments announced a combined A$940 million, each contributing A$470 million, for PsiQuantum to build and operate what it calls a utility scale fault tolerant quantum computer in Brisbane. The facility is described as warehouse sized, expected to create up to 400 skilled local jobs, and Brisbane would become PsiQuantum's Asia-Pacific headquarters. The announcement also lists an innovation precinct, a climate research centre and university collaborations including PhD positions.
PsiQuantum uses photons, particles of light, as qubits. See photonic quantum computing explained. The big challenge is scale: such a machine needs enormous numbers of components and, like every approach, error correction. One Startup Daily report mentioned in search results suggested the Brisbane build had run several months behind schedule, but we did not read a confirmed 2026 timeline, so treat dates as uncertain.
A SmartCompany article dated May 22, 2026 adds that PsiQuantum signed a proposed deal worth about US$100 million with the US Department of Commerce, one of several proposed deals that include minority government equity stakes. It also reports a valuation of about A$10.5 billion after a US$1.5 billion Series E round. Those are reported figures about a private company and proposed terms, not final awards.
Diraq: chips you could make in a fab
Diraq was founded in Sydney in 2022 as a UNSW spinout led by Andrew Dzurak. The same SmartCompany article says it uses existing CMOS chip manufacturing techniques, signed a letter of intent for up to US$38 million through the US CHIPS Research and Development Office, received A$20 million from the National Reconstruction Fund earlier in 2026, and plans to launch its first quantum product in early 2029, assembled in Sydney. Dzurak's claim that silicon is the most economical and scalable path is his own view, not an independent finding, but the logic is appealing: if qubits look like chips, the world's chip industry knows how to scale them.
Silicon Quantum Computing: atoms placed one by one
Silicon Quantum Computing (SQC) is a Sydney company founded by Michelle Simmons, a former Australian of the Year, as a UNSW spin-off in 2017. It builds qubits from phosphorus atoms placed in silicon with atomic precision. The Newcastle Herald reported on March 24, 2026 that SQC received A$20 million from the National Reconstruction Fund, supporting operations including manufacturing quantum chips in Australia and demand for its Watermelon machine learning processor. The company states a goal of building the world's first commercial scale quantum computer in silicon, in Australia.
A shared stamp of approval
SmartCompany notes that both Diraq and SQC were selected for DARPA's Quantum Benchmarking Initiative in 2025. QBI is a US program that evaluates which companies have credible paths to a useful machine; see the DARPA QBI explainer. Being picked is encouraging, but it is a stage in an evaluation, not a guarantee.
What this says about policy
Australia is using its money in three ways: big co-investment to land a global company, venture style funding through the National Reconstruction Fund for local ones, and universities as the talent engine. It is also notable that US funding talks are reaching Australian born companies, which shows how connected the Pacific quantum ecosystem has become. For other national playbooks, see the global race and the regional comparison.
What to watch next
- Confirmed construction milestones in Brisbane.
- Whether the proposed US deals for Diraq and PsiQuantum are finalized.
- Whether SQC and Diraq show steady gains in qubit quality and number.
- How company roadmaps (such as early 2029 for Diraq) hold up. Roadmaps often slip, and honest reporting says so.
The optimistic read
Few countries of Australia's size have a world class photonic project and two serious silicon startups at the same time, all rooted in strong university physics. Whichever approach wins, Australian talent is likely to help shape the answer. For the industry view see IonQ, Microsoft, PsiQuantum and the rest.
Not financial advice. This page is about science and public policy. The QNT community token is an independent memecoin with no connection to any lab, company or government named here, including the real company Quantinuum Ltd. See the memecoin versus the company.
Sources and further reading
- Austrade: PsiQuantum to build a fault tolerant quantum computer in Australia (May 2, 2024)
- SmartCompany: Diraq and PsiQuantum in the US government quantum push (May 22, 2026)
- Newcastle Herald: 20 million dollar boost for SQC (March 24, 2026)
Reported as of 2026-10-09. Government programs and company roadmaps change often, so check the primary documents before relying on any figure. Nothing here is financial advice. The QNT memecoin is independent and has no link to any company, lab or government mentioned.
Frequently asked questions
How much did governments commit to PsiQuantum in Brisbane?
A$940 million combined, A$470 million each from the Australian and Queensland governments, announced May 2, 2024.
What do Diraq and SQC have in common?
Both are Sydney quantum companies built on silicon with UNSW roots, both reportedly got A$20 million from the National Reconstruction Fund in 2026, and both were selected for DARPA's QBI in 2025.
Are the US deals final?
Reports describe letters of intent and proposed terms. Treat them as proposals until confirmed.
Is QNT related to PsiQuantum, Diraq or SQC?
No. QNT is an independent community memecoin with no link to any company or government. Not financial advice.
Keep reading
- The Asia-Pacific Quantum Race: Japan, Korea, Singapore, Australia, India and Taiwan Compared
A side by side look at six Asia-Pacific quantum programs, what each is best at, and why 'the race' is better seen as many different bets. - Photonic Quantum Computing Explained
How does photonic quantum computing work? See how single particles of light become qubits, why photon loss is the main hurdle, and where the approach stands. - DARPA's Quantum Benchmarking Initiative: The Race to Utility Scale by 2033
What DARPA's Quantum Benchmarking Initiative is, the companies in each stage, the 2033 goal and the 2026 reopening for new proposals. - IonQ, Microsoft, PsiQuantum, Rigetti, D-Wave and the Rest of the Field
Short profiles of the other major quantum players: what each builds, what they announced, and what to watch.
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