Nvidia's venture capital arm has invested in PsiQuantum, marking its third investment in a quantum computing startup in a week. Quantum computing stocks have been volatile in 2025 amid controversy over how soon the emerging technology will be commercially available on a wide scale.
PsiQuantum on Wednesday said it raised $1 billion in a new funding round led by BlackRock, Singapore's Temasek and Baillie Gifford. With the new investment round, Australia-based PsiQuantum has a valuation of $7 billion. PsiQuantum plans to build data centers in Chicago and Brisbane.
Meanwhile, startup QuEra Computing on Tuesday announced that Nvidia has invested in the company. Alphabet's Google invested in QuEra in February.
Honeywell International's Quantinuum last week announced a $600 million funding round, with Nvidia among new investors.
Quantum Machines To Assist Supercomputers?
Quantum computing works on a subatomic level and uses exotic technologies, like supercold superconductor chips. Further, quantum computing aims to solve problems too complex for today's classical computers, such as simulating chemical reactions.
PsiQuantum builds quantum machines using photon technology. It's aiming for commercial-grade systems by 2027.
Some industry observers expect electronics-based supercomputers to co-exist with quantum computers. Nvidia has stated it expects quantum computers to assist supercomputers using its advanced chips. Nvidia has been working with Israel-based Quantum Machines and others to develop software that runs on both quantum machines and supercomputers.
A Nvidia spokesperson declined comment on the recent quantum computing investments.
In morning trades on the stock market today, Nvidia stock gained about 4% to 177.73. In 2025, Nvidia stock has advanced over 32%.
Nvidia's investments in quantum startups follow controversy earlier this year. At the CES conference in January, Nvidia Chief Executive Jensen Huang dismissed quantum computing as something that won't be very useful for 15 to 30 years. But at the Nvidia GTC conference in March, Huang was upbeat on quantum computing's outlook.
Quantum Computing Stocks: IonQ Analyst Day
In other quantum computing developments, Google on Wednesday said it has been selected to participate in the Defense Advanced Research Projects Agency's Quantum Benchmarking Initiative. The QBI project focuses on defining the technical concept for a utility-scale quantum computer.
Meanwhile, IonQ will host an analyst day on Friday.
In 2021, Honeywell merged its Quantum Solutions business with Cambridge Quantum, forming Quantinuum. Honeywell remains the majority shareholder in Quantinuum, owning 52% of shares. The company uses "trapped-ion" quantum computing technology.
In 2025, quantum computing stocks IonQ, D-Wave Quantum, Quantum Computing and Rigetti Computing have been volatile.
As of the market open on Wednesday, D-Wave stock has gained 92% while IonQ stock is up 5%. Rigetti stock has advanced 7% while Quantum Computing stock is down 2%.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
