Canada Launches Quantum Research Program to Compete with US

The Canadian government has initiated a new quantum research program aimed at establishing a competitive foothold in a rapidly evolving sector. Unveiled on March 6, 2024, at the Toronto offices of quantum firm Xanadu, this program responds to a recently launched initiative backed by the United States military, which seeks to attract Canadian firms into its fold.

The newly announced Canadian Quantum Champions Program (CQCP) will provide financial support to four domestic quantum companies: Xanadu, Nord Quantique, Photonic, and Anyon Systems. Each company can receive up to $23 million CAD in funding to enhance their development of “scalable and useful” quantum computers. Evan Solomon, Canada’s Minister of Artificial Intelligence, stated, “By strengthening our quantum ecosystem, we are building long-term economic resilience while ensuring Canada’s leadership in science and technology benefits all Canadians.”

This funding initiative is part of a broader commitment announced in November 2023, where the Canadian government pledged $334.3 million CAD to support the quantum industry under the newly established Defence Industrial Strategy. Over the next five years, the government plans to allocate $223.1 million CAD to boost quantum research, alongside $111.2 million CAD intended to anchor the Canadian quantum sector and facilitate its applications in defence.

Focus on Domestic Innovation

The announcement coincides with the advancement of three Canadian quantum companies—Xanadu, Nord Quantique, and Photonic—to the second round of the US Quantum Benchmarking Initiative (QBI), orchestrated by the Defence Advanced Research Projects Agency (DARPA). These firms have the potential to secure funding of up to $316 million USD (approximately $445 million CAD) if they succeed in developing functional, fault-tolerant quantum computers.

While it remains uncertain whether the participating Canadian companies can access additional funding through the CQCP, recipients must meet specific technical milestones to receive financial assistance. The National Research Council of Canada will oversee the assessment of the companies’ technologies through its Benchmarking Quantum Platforms initiative.

Julien Camirand Lemyre, CEO of Nord Quantique, remarked, “This investment is foundational for cultivating a strong quantum computing industry in this country. And it is a clear indication to both foreign and domestic investors that Canada is serious about quantum.” Nord Quantique focuses on developing superconducting qubits with advanced error correction methods, claiming to offer a more compact and energy-efficient computing solution compared to competitors. As part of the US QBI program, Nord Quantique received $1 million USD for its participation in Phase A, with the second phase potentially offering an initial $5 million USD along with further negotiation for an additional $10 million USD.

Strategic Vision for Quantum Development

Anyon Systems, described by CEO Alireza Najafi-Yazdi as the “dark horse” of the program, aims to create a quantum computer with several thousand qubits, integrating built-in error and noise reduction directly into its hardware. The company has so far avoided venture capital funding, relying instead on government grants to fuel its development. Najafi-Yazdi noted the government’s commitment to retaining companies in Canada and expressed agreement with this strategic vision.

Photonic, another participant, has raised over $100 million USD to date, including investments from strategic partner Microsoft. The company is focused on developing silicon spin qubits and addressing challenges related to the scalability of quantum computers. CEO Paul Terry expressed enthusiasm for the support from the Canadian government, highlighting its recognition of quantum technology’s strategic importance.

Xanadu, which employs a photonic approach to quantum computing by utilizing light particles, recently announced plans to go public through a special purpose acquisition company (SPAC) as part of its strategy to establish a Canadian quantum data centre by 2029. CEO Christian Weedbrook has previously stated that the company would remain in Canada and has advocated for a Canadian equivalent to the US QBI program, suggesting that direct federal investments would be more beneficial than loans.

In light of the competitive landscape posed by the US QBI program, Solomon reiterated the Canadian government’s commitment to developing policies that keep quantum firms anchored in the country. He emphasized that maintaining Canadian ownership of quantum intellectual property and innovation is a “matter of national priority,” particularly in the realms of quantum and cybersecurity technologies.

This strategic initiative marks a significant step for Canada in establishing itself as a leader in the global quantum computing sector.