# 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.

Published 2026-10-10 by TGOs. Canonical: https://tgos.io/news/2026/10/10/pentagons-conditional-150-million-loan-would-support-psiquantums-california/

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.[1][2] 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]

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]

## Why it matters

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

1. Department of War: Office of Strategic Capital Signs $150 Million Conditional Loan Commitment With PsiQuantum (Oct. 8, 2026) <https://www.war.gov/News/Releases/Release/Article/4622113/department-of-wars-office-of-strategic-capital-signs-150-million-conditional-lo/>
2. PsiQuantum: PsiQuantum Receives Conditional $150 Million Loan Commitment from the U.S. Department of War (Oct. 8, 2026) <https://www.psiquantum.com/news-import/psiquantum-receives-conditional-150-million-loan-commitment-from-the-us-department-of-war>
3. Department of War: Department of War Announces $350 Million in Quantum Computing Initiatives (Oct. 8, 2026) <https://www.war.gov/News/Releases/Release/Article/4622109/department-of-war-announces-350-million-in-quantum-computing-initiatives/>
4. DARPA: Four more teams enter Quantum Benchmarking Initiative's final stage (Oct. 7, 2026) <https://www.darpa.mil/news/2026/four-more-teams-enter-quantum-benchmarking-initiative-final-stage>
5. PsiQuantum: PsiQuantum Signs $125 Million Agreement with DARPA (July 22, 2026) <https://www.psiquantum.com/news-import/psiquantum-signs-125-million-agreement-with-darpa>
6. PsiQuantum: PsiQuantum Finalizes $100 Million Award with the U.S. Department of Commerce (Sept. 8, 2026) <https://www.psiquantum.com/news-import/psiquantum-finalizes-100-million-award-with-the-us-department-of-commerce>