Government backs silicon quantum play
Diraq closed its rolling Series A at over $100 million this week after the National Reconstruction Fund Corporation took a $20 million equity stake. The UNSW spinout is now planning a larger Series B later in 2026.
The investment backs Diraq's silicon qubit approach - chips that work with existing semiconductor manufacturing and fit into standard data centers. Founder and CEO Andrew Dzurak told reporters the company is "drawing to a close the first phase of capital raising" ahead of the larger round.
The silicon bet
Diraq's differentiation is manufacturing compatibility. While competitors like IonQ pursue ion traps (IonQ just spent $1.08 billion acquiring Oxford Ionics) and others build superconducting systems, Diraq uses silicon qubits that can be fabricated in existing semiconductor fabs.
The trade-off: Silicon qubits are harder to control but potentially easier to scale using proven manufacturing. The company employs 70+ staff across Sydney, Melbourne, and three US cities.
Timeline and competition
Diraq is targeting quantum advantage demonstrations by 2029 and fault-tolerant systems by 2033. Those are aggressive timelines in a field where Google, IBM, and well-funded startups are also racing toward commercial utility.
The company has raised approximately $60 million prior to this close, including a $15 million round in July 2025 from US and Singapore investors including ICM, Morgan Creek, and Main Sequence. The NRFC's involvement signals government confidence in Australia's silicon quantum approach.
What this means
The 2029 target matters because quantum computing has been "five years away" for two decades. Diraq's silicon manufacturing advantage could prove decisive if the qubit control challenges are solved - or irrelevant if they're not.
NRFC CEO David Gall said Australia "has potential to lead the world" in quantum. The $20 million stake suggests the government is betting on silicon as the winning architecture. We'll see if existing fabs plus data center integration beats purpose-built quantum facilities.
Diraq plans Australian expansion following this close. The Series B timing and size will indicate whether international investors share the government's conviction about silicon qubits.