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Capital · Government lending

Pentagon's conditional $150 million loan would support PsiQuantum's California prototype hub

The Office of Strategic Capital's commitment goes to a company DARPA is already evaluating in the final stage of its Quantum Benchmarking Initiative. The loan isn't guaranteed.

The Department of War's Office of Strategic Capital announced on Thursday, Oct. 8, a conditional commitment to lend PsiQuantum up to $150 million to support its 140,000-square-foot hub in Milpitas, Calif. There, the photonic quantum computing company develops and validates the prototype systems behind its fault-tolerant architecture.1–2 PsiQuantum said the financing would support its acquisition of test equipment, infrastructure for system assembly, integration and testing, and advanced cryogenic systems for its prototypes.2

Office of Strategic Capital announced a $150 million conditional loan commitment to PsiQuantum

A conditional commitment for a loan of up to $150 million from the Office of Strategic Capital

Office of Strategic CapitalDepartment of War
conditional loan commitmentcontingent
PsiQuantumphotonic approach to developing a fault-tolerant quantum computer
PsiQuantumphotonic approach to developing a fault-tolerant quantum computer
financing would supportcontingent
140,000-square-foot hub in Milpitas, Californiadeveloping and validating the prototype systems

Office of Strategic Capital financing would support PsiQuantum's acquisition of infrastructure and equipment for constructing, testing and validating prototype quantum systems

The proposed financing remains strictly conditional and is not guaranteed

Source: Department of War and PsiQuantum releases, Oct. 8, 2026

Sources
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PsiQuantum sits in Stage C, where government evaluators test whether a proposed utility-scale quantum computer can be built as designed and operated as intended.4 The department says the loan builds on the office's "ongoing collaboration" with the initiative.1 In July, PsiQuantum said it was one of two companies in that stage.5 Four more organizations have since joined Microsoft and PsiQuantum there: Atom Computing, Diraq, IBM and IonQ.4 The department says their advancement represents about $200 million in new funding.3

The commitment follows a $125 million expanded DARPA agreement PsiQuantum announced in July and a $100 million CHIPS and Science Act award it finalized with the Commerce Department in September.2, 6 The loan would be paired with co-investment from PsiQuantum, the company said.2 Neither announcement disclosed the loan's term, interest rate, any warrants or the size of that co-investment.1–2

Financial close is the next marker; to reach it, PsiQuantum must satisfy financial, legal, technical, due diligence and other requirements set in the commitment.1 DARPA's Stage C team, meanwhile, will be "closely scrutinizing the hardware and systems as they develop," said Micah Stoutimore, the initiative's managing director.4

Sources (6)
  1. Department of War: Office of Strategic Capital Signs $150 Million Conditional Loan Commitment With PsiQuantum (Oct. 8, 2026) www.war.gov
  2. PsiQuantum: PsiQuantum Receives Conditional $150 Million Loan Commitment from the U.S. Department of War (Oct. 8, 2026) www.psiquantum.com
  3. Department of War: Department of War Announces $350 Million in Quantum Computing Initiatives (Oct. 8, 2026) www.war.gov
  4. DARPA: Four more teams enter Quantum Benchmarking Initiative's final stage (Oct. 7, 2026) www.darpa.mil
  5. PsiQuantum: PsiQuantum Signs $125 Million Agreement with DARPA (July 22, 2026) www.psiquantum.com
  6. PsiQuantum: PsiQuantum Finalizes $100 Million Award with the U.S. Department of Commerce (Sept. 8, 2026) www.psiquantum.com
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Capital

CesiumAstro closes $730 million round to support its own planned satellite constellation

The space communications supplier plans a 737-satellite constellation that would take it into operating its own infrastructure. Janus Henderson led the equity round.

CesiumAstro announced Nov. 5 that it closed $730 million in Series D financing. The round valued the company at more than $4.5 billion.1

CesiumAstro raises capital to support its planned satellite constellation

Series D financing and Synchronicity plans, announced Nov. 5, 2026

$730MClosed Series D financing
737 satellitesPlanned Synchronicity constellation

CesiumAstro says the capital will support Synchronicity deployment alongside technologies, manufacturing expansion, spacecraft development and international growth.

Source: CesiumAstro, Nov. 5, 2026. As of Nov. 6, 2026.

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Synchronicity would extend CesiumAstro's business from supplying space technologies and complete spacecraft to developing and operating its own space infrastructure. The planned 737-satellite constellation is intended for commercial, sovereign and defense missions.1

Janus Henderson led the equity round, with participants including Insight Partners, Sands Capital and Magnetar. The announcement also lists $100 million in debt financing through the Export-Import Bank of the United States and JPMorgan, without specifying whether that amount is included in the $730 million.1

CesiumAstro acquired Jariet Technologies, 1Aardvark and Vidrovr in the past 12 months, bringing together semiconductor, mission software and artificial intelligence capabilities.1

The company says the capital will support Synchronicity deployment alongside advanced technologies, U.S. manufacturing expansion, spacecraft development and international growth. It also announced a $500 million investment over five years to expand its Austin headquarters, including advanced manufacturing space.1

Sources (1)
  1. CesiumAstro, "CesiumAstro Secures $730 Million in Janus Henderson-Led Series D at a Valuation Above $4.5 Billion; Unveils Synchronicity Satellite Constellation Following Fully Successful Element-1 Mission," Nov. 5, 2026 cesiumastro.com
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Capital · Drones

Axon targets larger Skydio stake with $1.2 billion investment

Axon will also become the drone maker’s exclusive public safety distributor in the U.S. and Canada.

Axon announced a roughly $1.2 billion minority investment in Skydio on Nov. 5, 2026. It expects its ownership to reach about 37% on a fully diluted basis.1

Axon announced an incremental minority investment of about $1.2 billion in Skydio

Nov. 5, 2026

minority investmentabout $1.2 billionplanned

expected to raise its fully diluted ownership from about 15% (as of Sept. 30, 2026) to about 37%

public safetyU.S. and Canadaplanned

Axon will also become Skydio's exclusive distributor for public safety in the U.S. and Canada.

Axon expects the remaining transactions to close in Q4 2026 and Q1 2027, subject to customary closing conditions

Source: Axon Form 8-K and Exhibit 99.1, Nov. 5, 2026. Data as of Nov. 6, 2026.

Sources
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The investment would pair a larger minority stake with an exclusive public safety sales channel in the U.S. and Canada.1–2 The deal builds on a partnership already bringing Skydio drones to public safety agencies across the U.S. Axon describes it as an expansion of its Drone as First Responder program.2

The initial purchase closed on Nov. 5. Axon expects the remaining transactions to close during the fourth quarter of 2026 and first quarter of 2027, subject to customary closing conditions.1

The investment combines capital for Skydio with purchases from existing shareholders.2 The initial purchase of about $254.9 million in non-voting Series G preferred shares was made directly with Skydio.1 Part of the cash consideration is intended to fund innovation and product expansion at Skydio, Axon says.2

Sources (2)
  1. Axon Form 8-K, Nov. 5, 2026 www.sec.gov
  2. Exhibit 99.1, Axon press release, Nov. 5, 2026 www.sec.gov
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