PsiQuantum is the kind of high-risk investment that would sit more comfortably in the Future Fund rather than a direct investment made by governments. So it’s not surprising the Qatar sovereign fund and the Singaporean government’s investment fund joined its list of new investors.
Ed Husic announced the investment in PsiQuantum last year.Credit: Jamila Toderas
Sovereign funds and venture capital funds have an investment model that fosters a scattergun approach to investing – putting relatively small amounts of money into a range of high-risk start-ups in the hope that down the line one or two will be 10 or even a 100 times bigger.
But direct investment from governments needs to meet a higher watermark.
There is no doubt that cracking the code to actually build a quantum computer is next-level nirvana – but no one has done it yet.
The promise of quantum computing lies in its capacity to solve complex problems exponentially faster than traditional computers.
For nerds interested in the details, quantum computing is an advanced form of computing that uses the principles of quantum mechanics to rapidly increase the processing of information. Where classical computing relies on binary bits (0s or 1s), quantum computing uses quantum bits – or qubits – that can exist in multiple states simultaneously.
I hope that clears up the science. For those who find it baffling, suffice to say PsiQuantum chief executive Jeremy O’Brien reckons his company is a way down the track – and it’s now looking to build a cutting-edge world-leading facility in Brisbane, of all places.
It certainly helped that a couple of the company’s founders were locals, even though the head office is in Silicon Valley.
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It would be premature for the Queensland or federal government to claim vindication of their investment.
And it should be noted that for the likes of Nvidia and even Macquarie, the funds spent on investing in PsiQuantum would barely be noticed or move the dial on their overall returns.
However, there will be plenty of scrutiny on the Australian government if this investment goes pear-shaped.
But for now, the federal and Queensland governments look like they are in illustrious company.