Canada Unveils Quantum Research Program to Compete with U.S. Initiative

The Canadian federal government has launched the Canadian Quantum Champions Program (CQCP) to foster domestic quantum research and development in response to a U.S. military-backed initiative seeking to attract Canadian firms. Announced on October 16, 2023, at Xanadu’s offices in Toronto, this program aims to support four key Canadian quantum companies—Xanadu, Nord Quantique, Photonic, and Anyon Systems—with funding of up to $23 million CAD each.

According to Evan Solomon, Minister of Innovation, Science and Industry, this investment is vital for establishing a robust quantum computing sector in Canada. He 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.” The funding forms part of a larger commitment of $334.3 million CAD made in November’s federal budget under the newly established Defence Industrial Strategy.

The CQCP is designed not only to retain Canadian firms but also to enhance their capabilities. Over the next five years, the government plans to allocate $223.1 million CAD for quantum research and an additional $111.2 million CAD to anchor the quantum industry within Canada, particularly for defense applications. This move follows the earlier announcement of a national quantum strategy valued at $360 million CAD in 2023.

The impetus for this program arises from the recent success of three Canadian firms—Xanadu, Nord Quantique, and Photonic—advancing to the second round of the U.S. Quantum Benchmarking Initiative (QBI), managed by the Defense Advanced Research Projects Agency (DARPA). If successful, these companies could receive up to $316 million USD (approximately $445 million CAD) to develop a functional, fault-tolerant quantum computer.

While it remains uncertain if these companies can secure additional funding through the CQCP, the National Research Council of Canada is set to evaluate their technologies through the Benchmarking Quantum Platforms initiative. Julien Camirand Lemyre, CEO of Nord Quantique, emphasized the significance of this initiative, noting, “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 specializes in superconducting qubits with advanced error correction techniques. The 50-person team claims to have developed a more compact and energy-efficient quantum computing method compared to competitors. Through the U.S. QBI, the company has already received $1 million USD for participation in Phase A, with the potential for additional funding in later stages.

Anyon Systems, described as the “dark horse” of the program by CEO Alireza Najafi-Yazdi, has plans to create a useful quantum computer utilizing a few thousand qubits, incorporating built-in error and noise reduction. The 30-person company, founded in 2014, has not pursued venture capital but has benefited from various government grants. In an interview, Najafi-Yazdi expressed support for the government’s strategy to ensure firms remain anchored in Canada, stating, “We should take sovereignty very seriously.”

Photonic is focused on developing silicon spin qubits and has raised over $100 million USD in funding, including investments from strategic partner Microsoft. CEO Paul Terry stated, “We’re pleased that Canada recognizes the strategic importance of quantum, and to be one of the companies invited to participate in Phase 1 of the CQCP.”

Xanadu employs a photonic approach to quantum computing, utilizing light particles for computations. In November 2022, the company announced plans to go public via a special purpose acquisition company (SPAC) as part of its strategy to build a Canadian quantum data center by 2029. CEO Christian Weedbrook has previously emphasized the importance of keeping quantum technology within Canada and has advocated for a Canadian equivalent to the QBI program.

In light of the U.S. QBI, Solomon has indicated that Ottawa will introduce policies to retain quantum firms in Canada. He reiterated that maintaining quantum intellectual property and innovation as “robust and Canadian” is a matter of national priority, particularly concerning quantum and cybersecurity technologies, which he classified as critical to national security.