The federal government is launching its own quantum research program in response to a US military-backed initiative to attract Canadian firms.
“This investment is fundamental to developing a strong quantum computing industry in this country. And it is a clear sign to both foreign and domestic investors that Canada is serious about quantum technology.”
Julien Camirand Lemire,
Quantum North
Innovation, Science and Economic Development Canada (ISED) launched the Canadian Quantum Champions Program (CQCP) Monday morning at the Toronto offices of quantum firm Xanadu as part of an effort to keep these up-and-coming firms in Canada. The program will support four homegrown quantum companies—Xanadu, Sherbrooke-based Nord Quantique, Coquitlam, British Columbia-based Photonic and Montreal-based Anyon Systems—to develop “scalable and useful” quantum computers through funding of up to C$23 million per company.
“By strengthening our quantum ecosystem, we are ensuring long-term economic sustainability while ensuring Canada's leadership in science and technology benefits all Canadians,” AI Minister Evan Solomon said in a statement.
The funds will come from Canada's recent commitment of $334 million to support the quantum industry, promised in the November federal budget as part of a newly created fund. Defense industrial strategy. Over five years, ISED and other federal agencies are expected to spend $223 million to support quantum research and $111 million to “establish the Canadian quantum industry in Canada and use quantum for defense.” Previously, the government announced national quantum strategy worth $360 million in 2023.
The announcement comes after three Canadian quantum companies advanced to the second round American Quantum Benchmarking Initiative (QBI), a program of the Defense Advanced Research Projects Agency (DARPA). Xanadu, Nord Quantique and Photonic could receive up to US$316 million ($445 million CAD) in funding if they succeed in developing a functional, fault-tolerant quantum computer.
It is unclear whether participating Canadian companies will be able to obtain more funding through the CQCP, although technical milestones must be reached before funding will be released. To evaluate companies' technologies, the National Research Council of Canada will create a Quantum Platform Benchmarking Initiative.
“This investment is fundamental to developing a strong quantum computing industry in this country. And it is a clear sign to both foreign and domestic investors that Canada is serious about quantum technology,” Julien Camirand Lemire, CEO of Nord Quantique, said in a statement.
Nord Quantique is working on superconducting qubits with a special type of error correction at the qubit level, the basic software unit of quantum computing. The 50-person team claims to have developed a computing method that keeps the size of a quantum system compact and more energy efficient than its competitors.
Under the US QBI program, Nord Quantique received US$1 million for participation in Phase A. The second phase offers companies an initial US$5 million with the option to negotiate an additional US$10 million, which Lemire said will have to be provided by participating companies.
According to CEO Alireza Najafi-Yazdi, the dark horse of the program is Anyon Systems. The 30-person company, founded in 2014, plans to develop a useful quantum computer with several thousand qubits and error and noise suppression built into its hardware. The company did not raise venture capital, but received government grants.
“The government wants to make sure that companies have a foothold in Canada. [and] I completely agree with this opinion,” Najafi-Yazdi told BetaKit on Sunday. “We have to take sovereignty very seriously.”
Photonic is developing silicon spin qubits that are networked, with a particular focus on solving the scalability problem of quantum computers. It raised more than US$100 million is currently funded, including from strategic partner Microsoft.
“We are pleased that Canada recognizes the strategic importance of quantum technology and is one of the companies invited to participate in Phase 1 of the CQCP,” Photonic CEO Paul Terry said in a statement.
Xanadu took a photonic approach to create a useful quantum computer, using light particles to perform calculations. In November, the company announced plans to go public via special purpose acquisition company (SPAC) as part of efforts to raise capital and the goal of building a Canadian quantum data center by 2029. CEO Christian Widbrook previously said Xanadu would not be moving to the US.
On Podcast BetaKitWidbrook advocated for the Canadian equivalent of the QBI program. Since the US government had already done due diligence on the companies involved, he said it would be “great to have a spin-off program or [our] “Own program” for Canadian companies. Widbrook said private equity is ideal when it comes to federal support for companies like his, rather than loans through organizations like the Strategic Innovation Fund.
In light of US QBI programSolomon said BetaKit in June that Ottawa planned to introduce policies that would help keep quantum firms in Canada. He said keeping quantum intellectual property (IP) and innovation “robust and Canadian” is “a matter of national priority.” Quantum and cybersecurity technologies, he added, are a matter of national security.
Artistic image courtesy of Josh Scott of BetaKit.
