The Quantum Unicorn: Microsoft and RBC Bet $131 Million on Photonic’s "Distributed" Future
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| Photo by Tadas Sar on Unsplash |
The race for quantum supremacy has a new unicorn, and it is rising from the Pacific Northwest. Vancouver-based Photonic Inc. has secured C$180 million ($131 million) in fresh capital, vaulting its valuation well past the $1 billion mark. This latest funding round, led by Planet First Partners, represents a significant vote of confidence from heavyweights across industries: tech giant Microsoft, telecom leader Telus, and notably, Royal Bank of Canada (RBC). The deal marks RBC’s first direct equity investment in a quantum computing firm, signaling that the financial sector is moving from curiosity to active capitalization of quantum technologies.
Photonic’s approach differs radically from the monolithic "supercomputer" model pursued by competitors. Instead of trying to build one massive, error-prone processor, Photonic focuses on distributed quantum computing using silicon spin qubits that are linked via light (photons). This architecture allows them to network smaller quantum modules together similar to how classical data centers work creating a scalable, fault-tolerant system. This "network-native" design is precisely why Microsoft entered a strategic partnership with Photonic in 2023, aiming to build the backbone of a future quantum internet that can seamlessly integrate with existing fiber-optic infrastructure.
The investment is part of a broader "Quantum Boom" in Canada, which is rapidly emerging as a global hub for the sector. While Silicon Valley chases AI, the Canadian ecosystem is cementing its lead in quantum hardware. D-Wave Quantum Inc., also based in British Columbia, has seen its stock soar over 3,000% in two years, reaching a valuation of $10.6 billion. Meanwhile, Toronto-based Xanadu Quantum Technologies recently announced plans to go public via a SPAC deal expected to raise $500 million. This cluster of activity is supported by aggressive government funding, as Ottawa scrambles to compete with the US, where initiatives like DARPA’s "fault-tolerant" challenge which selected Photonic for its second phase are accelerating the timeline for commercially useful quantum machines.
With "early revenue" already in the millions, Photonic is using this war chest to transition from R&D to commercial deployment. The roadmap includes scaling its workforce and proving its technology in real-world environments, particularly in finance where RBC anticipates breakthroughs in portfolio optimization and risk modeling. While CEO Paul Terry remains cautious about an immediate IPO, noting the volatility of public markets, the company’s trajectory suggests that the "theoretical" phase of quantum computing is ending, and the industrial phase has begun.